Busines Plan Real Estate Agent

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  • 8/14/2019 Busines Plan Real Estate Agent


    Real Estate AgentBusiness Plan

  • 8/14/2019 Busines Plan Real Estate Agent




    With two classes, and high school diploma, and age limit, anyone can become a real estateagent. These minimal criteria are what separate Me Realty from the competition. This is athreat because every newbie that sells two or three homes one year and quits, is taking two orthree sales away from Me Realty. As of January 2005, there were over one million licensedREALTORS registered with the National Association of Realtors. This national associationpromotes real estate as a career, further increasing the likelihood of increased competition.


    Government involvement with interest rates, regulations governing real estate transactions,and involvement with who can sell real estate effects the entire industry. Interest ratemanipulation can increase or decrease the demand for real estate financing. Regulationsgoverning real estate transactions will require continuing education and knowledge toproperly ensure compliance. The continued government involvement will increase the timeneeded for education, reducing the time devoted to income generating activities. Lastly,government involvement with control who can sell real estate will have a large impact oncompetition. If the government continues to allow financial institutions and banks access tothe real estate market, what will stop insurance companies and retail companies (Wal-Mart,Target, etc.) from entering real estate sales.

    Lower CommissionCompetitive forces may create downward pressure on sales commissions. The competitivenature of real estate and ease of access to the industry will decrease the commission rate onhomes. This can only be combated with direct inquiry and sales finesse. Customers/clients

    will work with an individual who is providing added value and the perceived increased valuethat experience, knowledge, and confidence provide. The downward pressure will alsoincrease the number of sales needed to reach financial goals.

    Other potential threats: salaried salespeople become a reality, discounted commissions to 1.5percent, and acceleration of homebuyers' use of the Internet.

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    Company Analysis


    Me Realty, LLC is a one-person real estate company based in Metropolitan, State. The name MeRealty, LLC was chosen because it describes the business and brand. Me Realty is buildingbrand recognition for long-term client satisfaction.


    The objectives for the first three years of operation include:

    To create a real estate company whose primary goal is to exceed customer's expectations. To increase the number of clients served by at least 30% per year through superior

    performance and word-of-mouth referrals. To satisfy clients real estate needs and wants profitably. To develop a sustainable real estate business that generates value for customers. To uphold the ethical codes set forth by the State Real Estate Commission.

    Company History

    The principal, Gadda Mooga, has a BS-Marketing from the State University and an MBA fromUniversity of State. Ms. Mooga has over five-years experience in retail sales, ascending toDepartment Manager at Retail Store, a small pet store. As Department Manager, Ms. Moogawas responsible for customer service, inventory orders, and selling pet supplies. This experiencehas taught Ms. Mooga how to overcome customer objections, different closing methods, andhow to manage multiple tasks. These skills have built an excellent foundation for a successful

    career in real estate.

    Current Situation

    Market SituationReal estate has experienced three years of unprecedented growth and success. Fueled byhistorically low interest rates, new and existing home sales have exceeded prior years salesrecords. Various economists predict a real estate bubble, which will effect home values and real

    estate sales. The bubble burst theory is highly speculative and one that most real estateprofessionals are cognizant of but nothing to be alarmed. Historically, rising interest rates haveadversely effected home sales by reducing the number of individuals buying and selling homes.Individuals will always need basic shelter and homes satisfy that need.

    According to the Multiple Listing Service, the market Me Realty, LLC will be competing had4 705 sold residential units in the last six months with 1 776 currently pending This is a very

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    made in sales volume, gross commission income, net commission percent earned and total deals.These last goals will be used to measure and adjust the assumptions already discussed.

    Goal #Sales Volume $3,900,000

    Gross Commission Income $75,000

    Net Commission Percent Earned 2.8%

    Total Deals 26

    Legal Form of Ownership

    Me Realty, LLC is organized as a limited liability company that offers more protection than asole proprietorship. Ms. Moogas rental properties are also under the LLC designation, furtherinsulating the principal from legal issues.


    When Is a Real Estate Agent a Realtor?

    Me Realty, LLC is a REALTOR as Gadda Mooga is a member of the National Association ofRealtors, the world's largest professional association. The term Realtor is a registered collectivemembership mark that identifies a real estate professional who is a member of the NationalAssociation of Realtors and subscribes to its strict Code of Ethics.

    Founded in 1908, NAR has grown from its original nucleus of 120, to over 1,000,000 memberstoday. NAR is composed of Realtors who are involved in residential and commercial real estateas brokers, salespeople, property managers, appraisers, counselors and others who are engaged in

    all aspects of the real estate industry.

    Members belong to one or more of 1,700 local associations/boards and 54 state and territoryassociations of Realtors and can join one of our many institutes, societies and councils.Additionally, NAR offers members the opportunity to be active in our appraisal and internationalreal estate specialty sections. Realtors are pledged to a strict Code of Ethics and Standards ofPractice.

    Working for America's property owners, the National Association of Realtors provides a facilityfor professional development, research and exchange of information among its members.

    Professional DevelopmentMe Realty understands that to be a professional requires continual growth and improvement.Much like corporations and their quality and continuous improvement initiatives, Me Realty has

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    Audience. This is the specific target market in a particular segment or geographic area.

    o Me Realty will concentrate on the Meadowstream and Elk Scent neighborhoods

    o Me Realty will work the For Sale By Owner web sites.

    Differentiation. This is setting the company apart from the competition and offering aunique value-added service. Me Realty hasnt determined this, but will answer thefollowing questions; how will Me Realty approach sales that will set them apart fromothers in the market and whom will they appeal to.

    Media. This is the communication method used to reach the target audience.

    o Print advertising; brochures, business cards, and real estate magazine

    o Company web site and broker web site.

    o Community involvement in the Meadowstream and Elk Scent neighborhoods

    Action plan and schedule. This is the schedule of when each step will occur. This isthe to-do list that will make the marketing plan successful and achieve the results. Belowis a list of tactics Me Realty will use to reach the target market.

    March -- spring greeting post-card/letter with flower seeds, to family and friends reminding themthat Me Realty sells real estate. This will give them a reminder prior to the busy spring/summersales months. The reminder will place Me Realtys name in their evoke set and instant recall

    before they sell, buy or refer an acquaintance.

    July -- sponsor a 4th of July neighborhood (Meadowstream & Elk Scent) with flags.

    Fall/Autumn - distribute yard waste bags with Me Realtys logo to former clients, friends andfamily.

    December -- Holiday cards to former clients, customers, friends, and family

    Budget. Now that the marketing plan is in place, it needs fuel to move, thats thebudgets role. The budget must be used efficiently, otherwise the message will be sentbut no one will receive it. Me Realty has set an advertising budget of ten percent ofearned commissions, or $7,500. To get started, the company will purchase businesscards, personal brochures, directional signs, and personalized sold bags, and allocate tenpercent of all commissions to develop other marketing materials

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    Sales Promotion material such as newsletters, cards, letterhead, flyers, brochures,

    pens, and key chains will be purchased throughout the year and passed out duringopen houses, meetings, and listing appointments. As discussed above, Me Realty willsend periodic notices to past clients/customers with varying messages. So therecipient doesnt grow tired of receiving the mailers, each communication will relay adifferent service provided by Me Realty and personalized when possible. $1,000

    1. Personal Selling2. Public Relations

    a. Articlesb. Press releasesc. Interview

    3. Advertisinga. Most costlyb. Most used

    Sales StrategyMe Realty, LLC sales strategy is to emphasize comprehensive research and in-depth productknowledge. Me Realtys goal is to know everythin