Real Estate Website Business Plan
Our place in the market, though just pure luck and a lot of arrogance, has put us in a position to literally change the real estate industry forever. The advent of e-commerce and the growth of the Internet has no bearing on our current business plan. The Internet, in our opinion, is just a tool used by our company to supply services directly to an agent’s home office, but still conform to all our legal obligations under state and federal laws. We have the ability to offer our agents 100% of the commission from their sale, a situation that is afforded only the most successful realtors in the industry. We can do this by charging them only $200 per month, plus $100 per listing and/or sale. If you look at our projections, we can accomplish this and still generate astronomical profits from the deal. The agents save thousands of dollars, which makes it imperative to join our company. We make a great profit, and consumers save a great deal of money as well. The agents affiliated with Amerihall are called Amerihall Realest®; this title is awarded once they have reached the highest quality of professionalism and knowledge of the real estate industry.
The partners in this program are very capable in the automation of businesses as well as knowing the needs of real estate agents. This, combined with the timeline for change via the Web, gave us this opportunity to develop a site dedicated to the needs of the real estate industry. This includes agents, clients, suppliers, and even real estate educational services. Our company envisions continuing education classes provided to our agents exclusively through our website allowing agents, for a fee, directly from their home computers, to accomplish all the continuing educational needs required by the various states. The process will be complete all the way down to automatically filling their state license renewal through the appropriate agencies.
1.1 Strategic Alliances
AT&T will supply all of our Web needs as well as automate servers designed specifically for our agents allowing them to receive all of their calls through our virtual floor time plan. Each agent will be assigned an extension number. When clients call our toll-free phone number, they will be prompted to enter the agent’s extension. This call will then be forwarded directly to the agent’s home office. If a client does not have a particular agent’s extension number, they will be instructed to enter a second option and the call will be automatically forwarded to the closest Amerihall agent. AT&T realizes the strength of our business plan and has already anticipated that our growth will be so rapid, they needed to automate their systems further just to handle the demand. Their projection, which is independent of our own, is 10,000 within the 1st year and an anticipation for 100,000 transactions on their network before retooling their system. Their strength in our future lies in their ability to supply all of our potential clients with wide-band Internet access through cable modems. We are currently looking at a script page to allow our agents easy sign up and discounted installation program. This will allow our agents easy sign-up and a discounted installation program, and will also allow our agents a direct link through our website, promoting fast Internet access at discounted rates. Our company’s growth will be directly impacted on how fast clients and agents adapt to technology: AT&T is the best bet for implementing these future products
Bank of America has provided the most services to date for our company. They recognized early on in preliminary talks with our Web developer that this company will be a huge asset to the real estate industry. In addition to providing merchant services dedicated to our special billing needs, they have also developed special script in association with our Web development staff to handle the very specific needs of Amerihall agents. Bank of America and Amerihall have developed a system that will allow our agents to deposit their escrow checks directly into our corporate account right from their virtual office terminal. The electronic transfer will be instantaneous and will print direct deposit receipt instantly to the realtors’ printer. We are the first in the industry to provide this service. The bank will also certify our escrow accounts on a monthly basis providing our clients the highest quality control in the industry. These measures surpass all state requirements for escrow managements. Bank of America’s software developers are currently working on more features with future plans to allow our agents and their clients the ability to watch the transaction progress through all stages from start to finish.
Sterling Capital Mortgage is a national brokerage firm for residential mortgages. The have offered, at no expense to us, the ability for our agents to go online through our site exclusively and run a brief credit history on the clients. The server will automatically print a prequalification letter immediately allowing the agent and client to submit with an offer to purchase a particular property. This, again, is a system that was developed specifically for Amerihall and its members.
Lowen Signs is the largest real estate sign manufacturer in the country. They have developed a dedicated Web page for our agents to order their personalized Amerihall signs and ship them directly to the agent.
1.2 Service Description
Our product will be furnished on the Internet giving our agents the power to handle all of their real estate activities. The Internet already provides them access to our regional multiple listing services. This allows them to post their listings and reports their sales. We want to offer them all of the services that a traditional office offers without ever having to visit the designated office.
The website will allow agents to pick a duty to perform and be placed on the appropriate page to accomplish that particular task.
If agents need to order paper supplies, they simply go to our vendor area and pick the style, quantity, and the personal information to be printed. This site will be connected to a printer who will fill the order and ship the material directly to their home office. We ultimately would like to see the event as totally transparent to the agent and make it seem to be just another service provided by Amerihall. The same system would apply to house signs, Errors & Omissions Insurance, home inspection agencies, and real estate lawyers. We will also offer a site to a nationally recognized mortgage company. The realtor has the ability to punch in their clients personal information and the site will immediately run a credit check and download a prequalification letter for the purchase of the new home.
Our system will allow agents to be billed by credit card for all services, including monthly fees.
Our company will carry a blanket Error & Omissions insurance policy. Amerihall will pay the insurance carrier one fee annually and bill agents a quarterly fee of approximately $60 each.
Finally we will offer all the agents a nationally advertised toll-free number. This number will be advertised on participating Realest® signs with their phone extension. A caller will dial the toll free number and be prompted to provide the extension. The phone call would then be forwarded to the agent’s home office.
The number will also be a nationally advertised general number for the company allowing us to market the same number to all of our prospective clients via traditional advertising techniques. When a prospect calls the toll-free number and chooses option #2, AT&T automation will search out the closest Amerihall agent using the address finding service and forward the call to the agent. If the service fails to find an Amerihall Realest® agent in the area, the call will return to the corporate office and then be referred to a non-participating agent with an expressed agreement that they will pay a 20% referral fee to our office.
This feature will allow us to pay for national advertising to increase our public attention, without having to over-burden the individual agents with high advertising costs. As technology progresses, we are interested in ultimately doing all of the phone features in-house.
We will have a live online help desk, available during business hours, to answer all of our agents’ questions and concerns. There will also be an email help desk constantly online.
In addition to all these feature, the agents will be able to download all of the forms used in the sale and management of real estate via the website.
In the future, our virtual office will take advantage of a live chat through NetMeeting, which will allow all agents (with the appropriate equipment) to communicate with each other, as well as deal with questions and concerns directly with our staff.
We would also like to offer all the agents their own email address that corresponds with their Amerihall image.
1.3 Description of Company
Amerihall is a culmination of the ownership of several real estate companies both franchises and partnerships. Hall Properties Realty, Inc. has been in business for over 18 years with ownership in a commercial real estate sales and management company. Hall properties has also owned franchise rights for a residential real estate franchise D.B.A. Re/Max Junction. We have focused our real estate sales on creative marketing through the use of technology.
We have found shortcomings in real estate sales technique as a whole. The traditional real estate office follows a plan where brokers supply an office and basic equipment (i.e. phone, fax, computer, printers). They also supply all prerequisites dictated by state law, in that the company will have a place of business that is open for inspection by the appointed agencies of the state during normal business hours. The office and all pertinent documents for running the business will be open for inspection through the designated business hours. They also must supply at least one designated broker who answers to the state agencies concerning all real estate related issues.
There is no limit to the number of agents under one broker’s license, and the only rule designated by the state concerning the amount of agents is that all of their licenses must be displayed conspicuously in the office.
In the traditional office, the company receives 20%-50% of all commissions received from sales generated by the agent. This can amount to tens of thousands of dollars, and they still charge the agents for all miscellaneous items, which can run into hundreds of dollars monthly.
The Re/Max plan is a simple desk fee that is paid monthly on a triple net lease. This means an agent pays an average of $2,000 per month for desk rental and pays a shared fee for all other expenses (utilities, salaries, supplies, etc.).
In both cases, the agent is still liable for all personal advertising that is set up in a way to benefit the office as much as the agent. They are never guaranteed to get the fullest return on their investment.
Our plan is to take advantage of the Internet and provide individual agents with the ability to work out of their own homes using a computer, fax, and Internet connection to service all of their clients’ needs, thus eliminating the overhead of an expensive office. The agent gets to advertise in a fashion allowed by law and receives all the proceeds from their investment. Amerihall agents pay our company a flat fee of $200.00 per month and $100.00 per transaction. In return, the agent receives 100% of their commissions.
The mission of Amerihall is to change the way we all do business in real estate by reducing the expense of a traditional office and replacing it with a virtual real estate office using the Internet. We are literally saving real estate agents $30,000 to $50,000 per year, which will increase their profits and put them in a position to underbid all other conventional realtors in the commissions charged to consumers, ultimately saving the consumer thousands of dollars on the sale of the property.
1.5 Financing Requirements
The owner invests a total of $125,000 into the company. The rest will be funded by new membership and sales of services.
Our interest in seeking outside funding is solely for the purpose of expanding on a national level. The funds will be used for developing and marketing Amerihall through the continental United States. We will be using a direct marketing campaign through lists received through the Freedom of Information Act from the individual state licensing agencies. Our campaign will be modified only slightly to accommodate the different state laws and regional policies associated with real estate agents.
Our staff has the knowledge and foresight to help the industry into the 21st century. We are committed to technology growth and the changes in the real estate industry.
Providing agents with all the tools associated with the traditional real estate office at a fraction of the price.
Affording all the service vendors in the industry with a captured market of realtors through our website. These companies may market their products and services directly to Amerihall Realests® and its represented agents as long as we agree to their sales co-op.
Offering clientele an avenue to list their properties without the expense of a full-service real estate company. This particular service has already been proven successful through other Internet-based companies.
2.1 Organizational Structure
Regional office (1 per state):
- Managing Broker
- Clerical Secretary
- Regional Sales Administrator
- Managing Director (David Hall)
- Director of Realest® Relations
- Clerical Secretaries
- Online Help Representatives
- Regional Sales Administrator
- National Convention Administrators
- Convention\Sales Coordinator
2.2 Guarantees and Warranties
Our service agreement with the agents will include all requirements dictated by each state in performing our broker duties. We will also provide technical support for all of the services and software provided on our website. The computer manufacturer will provide all hardware warranties.
Errors and Omissions Insurance will be mandatory and billed directly to the agent quarterly ($60).
The escrow account will be balanced and certified monthly by a subsidiary of Bank of America.
All agents will be required to hold a membership with the National Association of Realtors and be subject to all of their rules of ethics and standard operating procedures.
2.3 Start-up Summary
Our start-up is fully financed by David Hall. He is capable of supplying the capital for regional development. It is assumed that, without financing, the company’s growth will be fulfilled by revenues. The profile suggests such a low overhead that no need for further financing is needed. Our only advantage to financial help is to accelerate the growth process for a national presence.
We will be spending a large amount of our profits on development and compter equipment to better service our agents and stay slightly ahead of the technology trends. The project demand for capital will grow only slightly over the first three years as our template for the business pan will copy well from one state to another. Our expense will be centered on maintenance and upgrading over a long term and should not exceed 2% of gross revenues.
Market Analysis Summary
This revolutionary plan is setting the stage for the future of real estate. No existing franchised or corporate owned traditional real estate company will be able to compete with the fees and subsequent profits established by our industry plan.
Even if the structure of real estate sales in the future is automated to the point of not needing real estate agents, our company will have a firm hold on the FSBO (For Sale By Owner) market. We are committed to change and embrace the idea that is inevitable. Our ability to foresee needs for change will prepare us for a profitable future in the industry.
3.1 Market Segmentation
Established Realtors: The majority of our market will consist of the Established Realtor and is viewed as the future of real estate. These agents have embraced technology and are constantly looking for new ways to increase their profit margin. Our service is ideal for them in that the majority of this part of the market has already sought out a 100% commission program and has established a home office as well as a Web presence. This technology-savvy group will be the fundamental part of the industry in the future and will see our company as simply “the wave of the future,” in real estate.
New Real Estate Agents: We project our New Agent segment to be a much smaller share than our Established Realtors segment. We assume that agents new to the real estate industry will need more hands-on training found in traditional real estate offices. Though, as technology progresses and our website matures, even inexperienced agents will find Amerihall beneficial.
Old Timers: Our research shows that the Old Timers will resist change and not be as willing to accept new technology as the Established Realtors. This part of the market is predicted to be our slowest growth area.
3.2 Target Market Segment Strategy
Originally our target will be the more experienced, computer-literate agent in the state of Illinois. We will expand the target as our system becomes more refined. The expansion to a national level should take no less than two years. Our research shows that in the beginning, our clients will be within the age of 30 to 45, with annual sales between $1.5 and $5 million. The clientele should be centered on the northwest suburbs, expanding to the western suburbs, followed by greater metropolitan Chicago, and finally fanning out to rural Illinois. At this point we will re-evaluate the growth market to determine the best plan of action.
3.2.1 Market Needs
We believe that, with our direction centered on e-commerce, our business can focus on expanding Web services with a boundless growth potential. Our market may be directed to providing specialized real estate software to all real estate agents, including our competitors.
Phase 2 of our plan will focus on clients looking to sell real estate on their own. The term used for this type of client is FSBO (For Sale By Owner, pronounced fisbo). This part of the market is growing at an alarming rate. Research from many independent sources show this growth factor will result in a decline of top-producing real estate agents by as much as 50%.
We believe our service, through Web technology, and the largest market share of realtors will provide us with the needed tools to overcome the changing real estate sales trends. Our goal is to provide full-service real estate sales at a fraction of the cost associated with traditional real estate office.
Currently, the traditional real estate office provides the listing and sale of a client’s property at approximately 6% commission of the total sale. This figure is an industry norm that is usually set by the managing broker. This figure can go as low as 5% in metropolitan areas and as high as 10% for commercial or other unique properties. To put this in perspective, a home selling for $200,000 will cost an average of $12,000 in commissions alone, not to mention legal fees and other closing costs which can bring the figure to as high as $15,000 before capital gains tax. It is plain to see why clients are scrambling to find ways to sell their own properties. The current figures for licensed real estate agents in Illinois alone are 49,000 with a 98.2% share of all sales in real estate. The untold truth is that, of the sales of real estate, 82% of the listings are sold by another real estate agent outside the listing office. The buyer’s agent receives 2.5 to 3.0% of the total commission charged to the seller. This is the saving grace of the industry and the key to our future roles as a real estate sales company. Our proposal for Phase 2 is simply to establish a revenue base from the ever-growing FSBO market.
Our plan is to initiate a Web-based tool which allows the public to input a listing directly into the Multiple Listing Service (MLS). The client will be able to list a home and show the properties themselves. The advantage is that this will be accomplished by only paying 2.5% – 3.5%, compared to the industry standard of 6%. Through automation, the public will have the option of saving thousands of dollars and receive the same marketing strength of a client listing a property the conventional way. The client will still receive offers from other realtors who, upon closing, will still receive 2.5%-3.5% commission for bringing in the buyer.
If the client is in need of a full-service realtor at any time through the transaction, there is always the option of searching out a local Amerihall Realest® agent with whom they can negotiate a deal, depending on the services needed.
Our agents benefit by being guaranteed added income when services are rendered. In this regard, we hope that agents will accept our proposed strategy to pull in a new market and not consider it a threat to their livelihood.
Clients benefit by saving thousands of dollars when taking on the responsibility of showing their homes themselves, a task that is legal and preformed more and more by consumers on a regular basis in the industry.
Our share of the profit is 1% commission on the sale, and no overhead on our part. This will establish a future market in this ever-changing environment. This phase of the plan will not be initiated until the Web volume is appropriate.
3.2.2 Market Growth
Our initial plan will provide for 27,000 Amerihall brochures to be mailed to all of the active realtors within the Multiple Listing Services of Northern Illinois (MLSNI). The response should be expected to be no less then 1,800. The responding agents will receive a start-up package, which details our services and provides transfer forms and related independent contractors agreement, or the agent can join Amerihall at our website, www.Amerihall.com. This process is expected to bring in 1,000 new agents The bulk of our agents should then trickle in as their contracts expire with their existing offices. We project 1,500 agents within the first year.
3.3 Service Business Analysis
The following topics will list a number of attributes associated with our business structure. Our plan is simple: that we will have no competition due to the fact that no company will be able to compete under the existing structure of their corporations. The established national real estate companies (i.e. Re/Max, Century 21 and Coldwell Banker) cannot compete while under a franchise structure. Independently owned offices have too much overhead to be able to compete with our corporate structure.
3.3.1 Competitive Edge
We project that all agents working for Amerihall will increase their profit margin by 70%. We suggest that, by volume of agents alone, our advertising and sales will stand out well above the other real estate companies. Our agents will be able to offer their services for 25% of the normal rates and still realize a significant profit.
Our agents will have the ability of changing the industry standard by under bidding the competition to the point that traditional real estate companies will be unable to compete due to high operating cost.
3.3.2 Main Competitors
The two largest companies are Re/Max and Century 21. We expect much resistance from these two leaders in the industry. Our first obstacle may lie in a direct legal assault on our company in an effort to drain our assets, and give them strength through diffusion; the second effort will probably be centered on credibility. The focus will be on how a rogue real estate agent could possibly provide services as efficiently as traditional office agents. These situations can both be defended by a professional image and certainly by the technology our agents can bring to their disposal.
3.3.3 Competition and Buying Patterns
The uniqueness of our company, and our knowledge of the realtors’ needs, gives us an exceptional lead over any competitor. Our concern is over copycat companies and the ease of repeating our idea before we grab a firm national position. We are investing a great amount of energy using copyrights and patent laws to assure a firm position.
Real Estate Business Plan Sample
This detailed sample plan will assist you in drawing up your own business plan for any start up real estate company.
Real Estate Brokerage Sample Business Plan
Starting up your real estate brokerage does require planning and this includes having a business plan similar to this one.
Real Estate Brokerage Business Plan
RJ Wagner & Associates Realty, Inc., is an S corporation domiciled in the state of Texas. This corporation is capitalized by one single stockholder and one principal investor, Regina Wagner. Regina Wagner is a licensed broker and the sponsoring broker for this firm. The licensed broker of this firm will sponsor licensed real estate agents (independent contractors) in the state of Texas. This corporation will formalize the real estate services offered.
RJ Wagner & Associates Realty, Inc., will open its doors for operation in July. The office is located in Houston, Texas (Champions area) in the Greenwood Square Shopping Center, to provide services to the higher income section of Metropolitan Houston.
Credibility and reputation excel with the broker of this firm, with a published real estate book and real estate organizational programs placed in the Houston Association of Realtors and the Dallas Association of Realtors bookstores and superstores. For the past year novice licensed agents have enjoyed the organizational tools and guidance offered in the book Texas Real Estate/The Mobile Mentor.
The primary objectives of our organization are to:
- Become a profitable organization allowing us the freedom of taking advantage of other real estate investment opportunities as they become available.
- Recruit and hire self-motivated, success-oriented, and hardworking sales agents.
- Maintain an office of at least 15 sales agents who meet the previous requirements.
- Develop a solid, corporate identity in our specified targeted market area.
- To establish good working relationships and begin working as a team, promoting communication and suggestions from all participants.
- Become one of the top brokerage firms in operation in the Champion area by our third year of operation, or before.
- Realize a positive return on investment within the first 12 months.
We believe the above-mentioned objectives are obtainable because of the professionalism of the manager and sales associates this corporation will hold. Individuals gaining a real estate license leave school with the knowledge of the real estate laws and procedures. The turnover rate in this business is high since agents have no training outside the laws and regulations of the business itself. Once they have a license, only then, they may obtain the sales and marketing training that is needed upon entering the profession. This training is available at a high price to the agent. When starting out, most agents are not able to obtain this training at the high prices set forth, and without the proper training the average earnings of a beginning real estate agent is very low in comparison to industry standards.
The office environment we will be providing will be productively arranged yet inviting to the agent as well as the client. There will be a location in the office each day with a daily marketing routine/schedule to follow. Agents have the opportunity to be guided each day through a marketing plan to gain clients. They may choose to follow the guidelines and training provided or they may follow their own daily routines. We will be supplying a program allowing the new agents to earn more than the average real estate agent by providing guidance and stability.
If an agent with our company sets a goal to obtain only one seller and one buyer for the month, on an average of $150,000 sale on each side, would earn the agent $6,750 per month X 12 months = $81,000 per year. Regina’s goal as the broker is to assist each agent in conquering this goal.
The same sales as noted above would profit the corporation $2,250 per month X 12 months = $27,000 for the year X 15 agents = $405,000. This is not including sales from the active broker of this corporation which would be $4,500 commission from each side to total $9,000 (100%) to the corporation. The broker will receive a salary from the corporation.
This plan is written as a guide for starting and managing this new business, and will also serve as the basis for a separate, detailed marketing plan. Following is a summary of the main points of this plan.
The objectives of RJ Wagner & Associates Realty, Inc., are to generate a profit, grow at a challenging and manageable rate, and to live up to the ethical codes set forth by the Texas Real Estate Commission.
The first mission of RJ Wagner & Associates Realty, Inc., is to first recruit Texas real estate agents. The agents choosing this firm will receive top commission allowing them more financial advantage for advertising in order to gain more business.
The ongoing mission will be to assist both homeowners selling their homes, as well as homebuyers purchasing the home of their future, by providing professional and personal assistance. Ensuring customer’s best interest are always of the utmost importance.
The keys to success for RJ Wagner & Associates Realty, Inc., are marketing and networking, responsiveness and quality of customer service and generating repeat customers.
We wish to establish a successful partnership with our clients, our staff members, and our title companies, that respect the interests and goals of each party.
The local market for this business, while not new, is wide open for new and expanding brokerage firms.
An initial financial analysis of the viability of this venture shows outstanding promise and results. Several sources note that the real estate business has proven to be quite lucrative in today’s fast-paced world.
While so doing, the company will always continue to strengthen its position in the target market area by providing superior customer service to clients and to sales associates.
In conclusion, as shown in the highlights chart to follow, this plan projects rapid growth, as additional agents join, and high net profits over the next three years. Implementing this plan, in conjunction with a comprehensive and detailed marketing plan, will ensure that RJ Wagner & Associates Realty, Inc., rapidly becomes a profitable venture for the owner as well as for the contracting agents.
RJ Wagner & Associates Realty, Inc., is a new company that provides high-level expertise in real estate sales in the state of Texas. It will focus initially on homesellers and homebuyers, as well as in-house sales agents. Our customer service philosophy is unique. In a philosophic sense, RJ Wagner & Associates Realty, Inc., has three distinct customer groups: sellers, buyers, and agents.
Sellers of real property are our first customers. Listers of properties (sellers) pay commissions from the sale of their property and are the direct clients of the real estate brokers. We will never lose our focus that clients who have retained RJ Wagner & Associates Realty, Inc., to list and sell their properties are our first obligation.
Our second real customer is the buyer of residential real estate. We will provide superior personal services to buyers.
Our third real customer is the licensed real estate sales agent. It is the agent’s job to provide a professional service to both sellers and buyers, specifically in this order. Therefore, it is the direct responsibility of RJ Wagner & Associates Realty, Inc., to provide service to our sales agents.
As it grows, it will take on new agents providing them with a highly competitive commission earnings, as well as providing them with a support service that will allow for more productive time in order to gain clients at a faster pace. Hence motivating productive licensed agents in the real estate arena. As it grows, it will look for additional marketing techniques to offer clientele and serve the public in the high standards handed down by the Texas Real Estate Commission.
2.1 Company Ownership
RJ Wagner & Associates Realty, Inc., has been formed as an S corporation domiciled in the state of Texas. This corporation is capitalized by one single stockholder and one principal investor, the owner and broker of this firm, Regina J. Wagner.
2.2 Start-up Summary
Our start-up costs are outlined in the following chart. Said start-up costs derive from website design, office equipment, main computer station (complete with all realtor information for agent usage), stationery, legal costs, furnishings, office advertising and services, and expenses associated with opening our first office. The start-up costs are to be financed by direct owner investment and credit.
At RJ Wagner & Associates Realty, Inc., our principal service consists of selling residential real estate in a targeted market area. Our services provide our clients with an international network of buyers and sellers through the multiple listing service (MLS). Because of our capabilities to network with other brokers, we will sell homes faster than our clients could if they tried to market their home without the assistance of a licensed real estate agent.
In addition, our customers will list their homes with our agency because of our aggressive and highly-skilled professionals. We will continuously have an above-average sales force to generate and close residential listings.
The owner and broker of RJ Wagner & Associates Realty, Inc., is committed to success in the real estate market and adheres to the strict rules handed down by the Texas Real Estate Commission. Our high level of commitment will enable the company to attract top professionals as sales associates and clients looking to buy and sell residential real estate.
Agents with this firm will be provided with the following services:
- Top commissions.
- 24/7 hour office access.
- Own Web page.
- Marketing/sales guidelines to follow each day.
- Personal goal setting training
- Professional/commercial office setting in a highly visible and reputable location in the city of Houston.
- 24-hour answering service.
- Free inside/outside panoramic photography of each property listing. All photos are placed on HAR/MLS (Multiple Listing Service) and to the Internet realty sites.
- Full broker support.
- Professional flyer will be furnished complete with property photos for advertisement.
- Yard signs will be supplied and installed for the agent.
- Flyer distribution to other broker sites/agents.
Sellers will be provided with the following services:
- Free CMA (Comparative Market Analysis).
- Inside/outside photos in panoramic view placed on MLS (Multiple Listing System) and real estate Internet sites. This allows potential buyers to view our seller’s property online.
- Advertising in local real estate publications.
- We design an attractive pamphlet with all property information, room dimensions, tax information, a letter from the seller, and a complete history of the home for potential buyers to read while viewing the property. This pamphlet is for the seller to keep or to give to the new owner when the home sells.
- Attractive yard signs with flyer tubes attached for potential buyers driving by.
- “Just Listed Post Cards” mailed to surrounding neighborhoods.
- Listing flyers distributed to other broker sites.
- Circulated open house invitations (per seller approval).
- Supra System Computerized Lockboxes (we know when and who entered premises at all times).
- Excellent follow-up system on each showing.
- If no contract is submitted within the first listed month, we re-analyze our future marketing procedures with the seller.
Buyers will be provided with the following services:
- We match buyers to homes. We have an extensive questionnaire for our buyers to list their wants and needs. We then take this questionnaire and put the supplied information into our Passport program to match buyers to the homes matching their criteria. (Passport is the latest software available to licensed real estate agents and brokers in the state of Texas.)
- We go a step further with our buyers and we go on-site for them. We visit the homes of their choice and take inside and outside panoramic photos for their viewing. We can email the photos or have a face to face showing with the buyer. The buyer does not have to go on-site unless they choose to. We bring the home to them.
- We present their offers and comply with all negotiating for them.
Market Analysis Summary
RJ Wagner & Associates Realty, Inc., will be focusing on supplying homebuyers and homesellers professionalism and expertise in reaching a successful sale and/or purchase in their real estate needs. Our concentration also lies with our in-house agents. We feel by providing our in-house agents the support program they need our productivity should excel at a rapid pace.
Due to the strengthening of the economy in Houston area, more homebuyers today are looking to purchase homes. These changes in attitudes of homebuyers are a tremendous boost to real estate firms.
We are poised to take advantage of these changes, and expect to become a recognized name and profitable entity in the Houston real estate market. We chose to locate our office in the area of most revenue potential. Our targeted market area, the Champions area, shows stability and growth. We have a beautiful office, centered in the Champions area. This location will enable our sales associates to work in an area that will allow them to make more money in a shorter period of time.
The first quarter home values were up 8.8% from the same period in 2000, the Office of Federal Housing Enterprise Oversight says. The gain reflects an increase from the previous quarter, when residential real estate values saw year-over-year growth of 8.1%.
As stated in the Objectives section–we outline the profits to be gained with each agent striving for one seller and one buyer each month. We also state the extensive marketing plans, goal setting and training provided by this corporation to assist each agent in reaching this goal.
As stated in the Services section–we outline the services we will be supplying to the agents, sellers and buyers (all of which this corporation considers to be our customer).
As the outline following will indicate–our agents will earn top commissions, be supplied with the latest in marketing and advertising assistance, and have on-site broker assistance at all times. This coupled with the teamwork and excellent marketing programs provided, we feel we have a recipe for success.
4.1 Market Segmentation
Our most important market segment is the homeseller. The seller will be calling upon RJ Wagner & Associates Realty, Inc., for our excellent marketing strategies and techniques, and our ability to deliver personal consulting, professionalism and a follow up system.
As important would be the homebuyer. These buyers will be calling on RJ Wagner & Associates Realty, Inc., to “match” their criteria selections. This corporation will be previewing matching criteria homes for the buyer, thus providing the buyer with on-site viewing capabilities without actually visiting the home site.
Individuals desiring to lease will also be guided to lease properties of their matching criteria needs.
When referring a client outside our expertise range, we would search for a reputable and knowledgeable agent to assist them at their destination. When this corporation is the recipient of a referral–we would match the buyer to homes meeting his/her criteria specifications.
Last, but not least, would be the corporation in-house agents. We view each one as a customer and are sensitive to their needs. Tools, training, marketing techniques and strategies, and guidance needed is available at all times. Each agent will have the opportunity to be assisted in designing a work schedule that adheres to their work style, hence allowing greater productivity. All agents will receive on-site guidance in all areas needed.
4.2 Target Market Segment Strategy
We cannot survive just waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future.
Therefore, we need to focus our marketing message and our services offered. We need to develop our message, communicate it, and make good on it.
Real Estate Management Sample Business Plan
Any business that manages real estate started out with a detailed business plan such as this sample.
Real Estate Management Business Plan
MSN Real Estate (MSN) is an Oregon-based real estate company that will offer benchmarked rental units for the Eugene, Oregon community. MSN’s units will balance safety, cutting edge features, and a positive atmosphere for all tenants. These rentals will be provided with unmatched levels of customer service and attention. Sales are projected to be substantial in year one growing moderately by year three.
MSN will target three distinct customer segments. The largest segment that they will service is University of Oregon students. This segment is growing at 7% a year with 18,000 prospective customers. This segment is especially attractive since most of the local rental properties that are geared toward students are run down, poor quality units. The second market segment is local professionals who are increasing at 4% and have 12,000 potential members. The last segment is faculty and staff of the University. This section has a 5% growth rate and 6,000 potential customers.
MSN will initially focus their efforts on buying and developing existing properties. Once the properties are purchased, each unit will be hard wired with Internet access, state-of-the-art amenities will be installed, and safety measures will be implemented ensuring a cutting edge, safe environment. This course of action will be initially pursued as a way to efficiently utilize capital and establish a reputation within the community. Future projects may include custom build outs.
MSN will be led by Shawn Menashe and Nathan Koach. Shawn has a bachelors degree in Economics and received his MBA from the University of Oregon. Following school, Shawn went to work for one of the largest property management companies in the area. After seven years with [name omitted], Shawn had risen up to Vice President of Operations. It was his time at [name omitted] that provided Shawn with valuable industry insight and experience. Nathan brings different skills sets to the company, coming from a customer service background. At the young age of 21, Nathan had already completed his undergraduate degree and went to work for Voice Stream Wireless. After six years at Voice Stream, Nathan had been promoted to the Director of Customer Service for the Salem, Oregon center. In this position Nathan managed Voice Stream’s 200 person customer service department. This experience provided Nathan with incredible customer attention skills that he will leverage for MSN.
- Encouragingly substantial sales in year one and growing steadily through year three.
- Gross margin moderate and improving over the span of the plan.
- Net profit/sales to be positive by the second year.
- Have a crime rate of 0.
MSN Real Estate provides high-quality, comfortable rental units in Eugene and other areas of Oregon. MSN’s apartment units offer state-of-the-art living conditions reflective of the rapid advancements in technology and a growing need for quality housing. Our company is dedicated to a hassle free living environment in which our tenants can enjoy all of the benefits of safe, attractive, and inviting units. Unlike many other realty companies that are solely concerned with turning profits, our primary objective at MSN is to maintain the highest level of customer satisfaction that is achievable. Tenant safety, happiness, and comfort are our main goals. MSN maintains competitive market prices, while working toward expanding the number of units owned, and increasing total profits earned. Within the company we will strive to work as a cohesive, harmonious unit focused on exemplifying our mission. Just as customer satisfaction is an intricate part of MSN’s success, so is employee satisfaction. That is why the founders of MSN Real Estate believe that employee satisfaction will make the company a success and will be the key to their longevity.
Initial focus will be to buy and develop existing apartment complexes. We will modify and remodel the acquired real estate so as to meet MSN standards and increase long-term assets and income. Housing units will predominantly be located in the University neighborhood targeting both students and professionals. MSN fosters the ideals of the importance of tenant needs along with healthy and understanding relationships and a professional commitment to satisfaction.
1.3 Keys to Success
- Safe, quality housing that provides state-of-the-art amenities at competitive prices.
- Maintaining open communication between MSN and its customers in order to ensure the highest level of customer satisfaction and long lasting reputation within the community.
- To continue to expand the number of units owned and maintained, while also increasing the level of profits for both MSN and its investors.
MSN Real Estate is an enterprise that is involved in numerous aspects of the industry. Primary experience and expertise is in the development of high-quality, lower cost living for students and professionals seeking the most up-to-date technologically advanced living environment. An area of intense training and attention is the importance of strong customer service.
The first property purchased by the company is a 40-unit apartment building on the corner of Hilyard and 14th in Eugene. It is relatively close to the University, so will be easily rented to capacity nine months out of the year. For the remaining three months, the price of rent will be reduced and we will aim to remain at 60% capacity.
2.1 Start-up Summary
The total start-up expenses include legal, stationery, architect, brochures, consultants, insurance, rent, construction, expensed equipment, etc. Start-up assets required include short-term assets (truck, cell phone, etc.), and initial cash to handle the architect and contractor fees prior to opening. Additional cash is needed to pay all zoning fees and governmental regulations.
Long-term asset purchases and the assumption of long-term liabilities are anticipated.
2.2 Company Ownership
MSN Real Estate will be created as a Limited Liability Corporation based out of Portland, Oregon. It will be owned by its principal investors, Shawn Menashe and Nathan Koach. Shawn Menashe is the acting CEO and holds a 40% stake in the company. Nathan Koach is the acting CFO and holds a 40% share of the company as well. The other 20% is held by silent investors.
2.3 Company Locations and Facilities
MSN headquarters will be established in A-quality office space in the downtown area of Portland, Oregon. This will be the heart of our company, with satellite locations in Beaverton and Eugene, Oregon. We are also installing an in-house Internet server and 24-hour answering service so that all customer or business communications are dealt with in an expedient and fluid manner. Within any living development with more than 32 units a representative of the company will be located.
The company is currently in the final stages of purchasing its first building, a 40-unit apartment building on the corner of Hilyard and 14th in Eugene. The price of this building is $1.2 million. The company will make a down payment $120,000 and spend an additional $75,000 on renovation. This building houses mostly 2-bedroom units with average per unit price of $775 per month.
In Year 2 the company will purchase its second facility. It is currently in discussions with the owners of a 20-unit apartment building in downtown Portland, OR. It is difficult to predict changes in the building values over the long term, but it is estimated that we will be able to purchase this building for $570,000.
MSN offers on-site security guards who patrol the grounds during evenings, nights, and early mornings. We also offer an on-site repair service. There will always be an open line of communication between the renters and the management via an MSN Web page and a 24-hour, call-in answering service.
3.2 Competitive Comparison
MSN’s competitive advantage is as follows:
- We offer a higher level of quality in our units than the average unit on campus. This allows for those residents who do not want their living situations to inhibit their studies, comfort or enjoyment of campus life.
- Each unit will be fully wired to the Internet via available modem jacks and/or ethernet access. If the residents desire to have the best Internet access, we will give them that option.
- Our marketing and advertising costs will be low due to simple marketing strategies. However, the owner’s expertise in visual layout and communications will help create a unique and aesthetic product for the customer.
- The main competition MSN will encounter will be average lower cost apartment units.
3.3 Sales Literature
MSN will have brochures available at all offices. These will give the customer a general outline of our units and will explain the benefits of our units. We will also have a monthly newsletter that we will send out to our clients. This newsletter will inform the clients as to the growth and outreach of MSN. It will also contain some human interest stories about our complexes and the residents.
Will also advertise in the local newspapers including The Daily Emerald, The Register-Guard, and The Oregonian. Our marketing strategies are simple but aim to reach a large amount of people. The layout of our publications and advertisements will have a sophisticated and contemporary look without being overly formatted.
MSN’s key fulfillment will be provided by management’s dedication to a higher quality product. This is achieved through the solid network of contractors, and cutting edge architects who are all dedicated to helping MSN. We are hard workers who have a solid backing from our developers.
We will maintain a pool of professionals in which to pull from for our needed services. This will help us develop a rapport with our contractors as well maintaining our high expectations.
MSN real estate will have the most up-to-date technology provided both to the customers and to the subcontractors and other clients.
Ethernet ports and/or modem jacks will be installed in each unit developed by MSN.
Access to a 24-hour copy/fax center located on the premises.
Each unit will contain an emergency panic alert that will automatically go through to the manager and the local police department.
3.6 Future Services
In the future, MSN will look to give each department within the company the opportunity to become a more independent entity. This will make expansion efforts more efficient, and will provide specialists in their departments the chance to become more focused in their field.
We are in the process of conducting surveys in order to determine the best possible markets for MSN expansion.
Market Analysis Summary
MSN Real Estate’s main consumer base will be primarily students at the University of Oregon who will benefit from the apartment’s unparalleled level of quality, location, and technological amenities. We will also be marketing to local area professionals and recent graduates, along with faculty and staff at the University. These customers will be looking for safe, high-quality environments that can foster the type of atmosphere needed for scholastic and professional success.
4.1 Market Segmentation
MSN’s largest market segment in the Eugene area will be students of the local universities. These students will be the most likely to desire the technological amenities that our company offers. We expect this to be the largest growing segment with a growth rate of about 7%. Local professionals are another large segment. They will be attracted to the units because of the same technological needs, but will also be attracted to the comfortable, well maintained living environment. MSN offers units that provide a quality “hub” between college graduation and home ownership. We expect this segment to grow at a rate of about 4% with a more frequent turn over.
Local university faculty and staff represent the third and smallest identifiable segment, but contain the second highest growth rate. Proximity and quality will entice this segment which we expect to grow at a rate of 5%.
4.2 Target Market Segment Strategy
We believe that our unparalleled level of quality and technological amenities put MSN into a niche of its own. This will be the focal point of all our marketing and advertising efforts. These segments are also easily reached through local newspapers and publications, as well frequent open house displays.
It is essential for MSN patrons to understand that their needs are our priority.
4.2.1 Market Trends
This industry is constantly evolving and leaving many inflexible companies stagnant. One of the major trends is the need to adapt to technological advancements as well as maintaining the overall appearance and condition of the complexes.
Another important trend is adapting to higher density housing in smaller areas due to urban growth boundaries, etc. MSN is dedicated to following these trends while maintaining the level of comfortable livability that sets us apart from our competitors.
4.2.2 Market Growth
The market for high quality, reasonably priced apartment units has been growing at a rate of 6.7% since 1996. Oregon’s rental rates have remained even, averaging $697, or $.79 per square foot, during the fourth quarter of 1997. The Oregon market is experiencing rapid employment growth that is fueling demand for apartments, but not many new units are emerging. Not only is MSN pioneering this particular niche of affordable quality living, but it is capitalizing on the strength of the current economic growth in Oregon.
4.2.3 Market Needs
Each of our targets need the quality, convenience, service, safety, comfort and technological amenities that can only be found at our living complexes.
The student segment needs a quiet safe atmosphere that fosters a quality learning environment. They also need the convenience of location and on-site amenities.
The professional segment needs a living environment that separates them from the noisy, dirty inconvenience of average apartment living. Most professionals are on their way to home ownership or movement to a larger city, so they need housing that will let them feel like they are getting the quality that they need.
The faculty/staff segment also has similar needs. They need to feel separation from the noise and unkept conditions of most near-campus housing. Along with the students, they also need a place to feel safe and one that fosters convenience.
Entrepreneur Profiles2 weeks ago
8 Codes Of Success That Helped Priven Reddy of Kagiso Interactive Media Achieve A Networth Of Over R4 Billion
Technology1 week ago
3 Things Africa Must Get Right If It Wants To Leapfrog Into The 4th Industrial Revolution
Business Ideas Directory2 weeks ago
10 Cannabis Business Opportunities You Can Start From Home
Lessons Learnt13 hours ago
What Comfort Zones? Get Comfortable With Being Uncomfortable Says Co-Founder Of Curlec: Zac Liew
Business Landscape4 days ago
How Schindlers Attorneys Became Involved In The Landmark Cannabis Case
Branding1 week ago
Why You Should Prioritise Brand Image
Get Organised4 days ago
How To Multitask Like Tim Ferriss, Randi Zuckerberg And Other Very Busy People
Increasing Productivity1 week ago
Take Responsibility For Your Company’s Culture To Boost Productivity