Real estate. This industry is all about interpersonal relationships. Numbers, statistics, data, and all other aspects of a typical business are rendered irrelevant unless you are skilled in bonding with people. Real estate deals with some of the most important moments in a person’s life- like buying a home.
In recent years due to the enaction of the RERA Act, this profession has become increasingly transparent, risk-free, and more buyer and seller-friendly. Consumer redressal bodies and methods are also improved.
So, In this article we are going to answer the question - How to start a real estate business in India?
Real Estate Is Comprised of Four Types
Residential Real Estate
Homes up for sale, as well as newly constructed homes, come under this category. The homes can be anything- individual houses, co-ops, condominiums, vacation homes, townhouses, etc. Typically for single families.
Commercial Real Estate
Any property used for business is commercial. This involves malls, educational centers, offices, hotels, etc. They may be owned or leased out.
Industrial Real Estate
This includes buildings that are involved in manufacturing, production, warehousing, research, etc.
This land is undeveloped, and is used for farming, building ranches, open grounds for livestock, etc.
A real estate business typically specializes in one of the four types of real estate mentioned above.
How To Start A Real Estate Business
Every business needs a plan. It helps you gain better clarity of what you mean to achieve. Do you want to start a real estate business to increase your revenue? Or are you looking for a career change? Or maybe it’s something you want to do on the side? Your reason will affect your business because real estate is a round-the-clock venture. You need to be available at all times for your client. Understand why you are starting the business.
Next, you need the actual plan, your business plan. It gives you direction and helps you and your potential investors understand your goals and the milestones you hope to achieve. A properly drafted business plan helps you get loans from the bank if you really need any.
Conduct market research. There may be a rising need for green homes, or perhaps the university in your city needs more residential spaces. Researching will help you decide the sector to specialize in. Educate yourself on the aspects of real estate. If you are completely new to this, consider finding a mentor to help you initially. He/She may aid you in finding contacts, giving you a running list of dos/don’ts, whom to target, and so on.
Apart from choosing a type of real estate to deal with, you also need to decide your specialty- and that can be anything like residential brokerage, land developer, property manager, etc., Select the specialty you have the most knowledge about. You can add to your job titles as you gain experience.
Licenses & Registration
The Real Estate Regulation Act (RERA) of 2016 was established to convert the process of dealing with real estate into a clear, legally defined transparent process. No real estate agent can act without being registered. To get a Real Estate license in India one need to submit the required documents and wait for a thirty day period for its approval or rejection.
Any law firm or a senior agent can help you out with the documents required for real estate license in India and process. The license is valid for a period of five years. Any misconduct will lead to the revocation of your license.
While building a career in real estate is comparatively cheaper to starting a career in, say, engineering, it still involves substantial costs. Those costs include startup costs, office space, salaries for employees should you choose to hire them, and other such expenses. Having a revenue source at hand is better than borrowing a loan because it takes two to three years to get established in the field.
Certain careers such as ‘flipping’ developments i.e, buying land or developments, refurbishing them, and selling them at a better price involves a higher amount of money. Your business plan will help you in the budgeting aspect of starting your business.
A new real estate business is a startup. And every startup needs a great team. ‘What makes a great startup team’ is an another story altogether. In essence, having the right team can put you miles ahead of your competitors. Brilliant, dedicated, and all-around coordinated is how your team needs to be.
A company is first and foremost its name. Choose a name that inspires confidence in your brand. Networking is essential to your business as real estate is one of the few areas that completely relies on face-to-face (no skype!) interactions. And these interactions are irreplaceable by technology. Personal attention to your customers will give you much-needed word-of-mouth advertising.
Your office space must reflect the culture of your company. While you will mostly deal with clients on the field, an office creates an impression of experience and legitimacy.
Find your niche. Your niche is what separates you from the rest.
It is impossible to turn a blind eye to all things digital. An online real estate business presence in India is the easiest way to reach customers, improve your customer base, and establish an overall brand of your business.
Build a website, have a handle on all popular social media accounts, and brush up your SEO skills. Your digital identity will the first impression your customer has of you. Hire a professional developer if needed. Your website must display all necessary details and must be easy to navigate and interact with.
And most importantly, be available for your client twenty-four seven.
Iterate and Expand
Once you get the hang of things, it’s time to go big. Expand. Open branches in multiple cities or maybe specialize in other sectors. Hire more employees. Go to conferences and widen your network. Conduct conferences. Broaden your reach.
In the end, it all boils down to what I mentioned at the start- interpersonal relationships. The value you provide your customers is what will make them keep you at the top of their minds when it comes to real estate. Always provide excellent customer service. Keep track of market trends. With land development undergoing a frenzy as a result of overpopulation and better economy, there is no predicting how the demands will change. Keeping a close eye on developments and demands will give you the power to introduce them to each other.
Also, investing in land or developments is a huge deal for people who have been saving up their whole lives for it. In a way, a real estate agent is someone who makes dreams come true. And that is a huge responsibility as well as a gratifying act.