When the economy is stable and healthy, the area of real estate can be a strong career path for those who seek it. In fact, after the Great Recession of the 21st century, the real estate market rebounded. More and more opportunities have opened up for buying and selling in the housing market.
There are many different areas of real estate to investigate. For some real estate agents, the franchise route is the most promising and lucrative path. Offering franchises is a way for a business owner to expand the business and to operate the business without being in every location at once. In other words, the owner of the company will distribute the business through real estate franchises opportunities. Therefore, the owner will grant licenses to individuals to do business under the name of the company in the form of a franchise.
Franchises are known for following a formula. In other words, one location as part of a franchise cannot run differently than another location under the same franchise name. The franchise owners must follow rules and regulations that have been stipulated by the owner of the business.
The most stable real estate franchises include popular real estate company names that are recognized nationwide as well as worldwide. The primary function of agents who work for these franchises is the buying of property for customers and the selling of property for customers. However, buying and selling of property is not the only job that real estate agents do. There are other components of the housing market such as rental property management, home inspection, house flippers, redecorators, painters, and more. The largest and most well-known of the franchises with a real estate focus will have a part in all of these various areas of real estate.
A person interested in the real estate field will have the choice of either being an independent contractor, a person who works for an independent firm, or a person who works for a real estate franchise.
For those who prefer to work for a franchise, it is imperative to understand whether a franchise that focuses on real estate is the best bet. One way to determine if working for a franchise is the direction to go is to look at the pros of both a franchise and an independent.
The Pros of Working With Franchises That Focus on Real Estate
1. The Business Is Already There And Established
When you work with a franchise, you’re aren’t starting from the beginning. Any reputable franchise has a name and a proven track record. Therefore, when you are dealing with the public, you have that brand name on your resume and chances are it is a name that is recognizable nationwide and even worldwide. This kind of name recognition gives members of the public peace of mind and offers them a sense of security when doing business with you.
2. These Franchises Can Afford the Training
The real estate market is constantly changing. Therefore, it’s important to get the necessary training that you need to keep up with the various trends in the housing market and the different ways to get real estate in the hands of the public. Often this training cost money, and that financial cost may prove to be prohibitive for an independent contractor or for someone who is working for an independent firm. However, working with a real estate franchise means that the training will likely be covered for you. It’s important for any franchise owner to make sure its members are kept up to date, and therefore, training costs are part of the business of owning a franchise.
3. Marketing and Advertising Support
One of the most useful factors of working with a franchise with a focus on real estate is the marketing and publicity support. If you want to get your name out there, you have to advertise yourself. The best advertising comes with an already large platform. Established franchises have the platform to get your name out to thousands and sometimes millions of people.
4. Opportunity for Partnerships
When you work with a reputable franchise, their name is also known by other vendors, such as mortgage lenders or property inspectors. These vendors are more apt to cooperate with a known franchise than with an independent. The connections you can make as a real estate agent with a franchise gives your customers ease and convenience when trying to navigate the housing market. That comfort and convenience, in turn, brings more and more business to the franchise.
5. Extensive Inventory of Properly Listings
One of the major pros of working with a franchise is what they bring to the table. Franchises with a focus on real estate have large listings of property to work with. This ensures that customers have a lot to choose from which makes working with a franchise, as a customer, attractive.
6. Updated Equipment
Another huge advantage of a real estate franchise is its operating systems. Chances are they are working with updated computers, technology and top-of-the-line real estate software, all designed to make the job of a real estate agent easier. They have the best equipment because they have the financial resources to give to agents to make the career as effective as possible.
The Pros of Working As an Independent.
1. There Is More Flexibility As An Independent
If you are an independent contractor, you call the shots. If you work for an independent firm, you may still call the shots. This is because you’re not working with a group of people at a franchise who are restricted by the rules of the franchise. All real estate agents have some degree of independence and flexibility, but you don’t have to run your business by the corporate culture of the franchise.
2. You Have More Of A Voice
When you work with an independent outfit, chances are you will have more say in how things are run. Franchisees must follow a formula that has already been designated, and that is tried and true. Whereas, an independent outfit may be creating the rules as they go along. Depending on your degree of experience, you could also be in a position to create policy fo the independent real estate firm.
3. You Have the Opportunity to Shine
Although you can certainly stand out with a franchise, you have an even greater opportunity to do that with an independent. You can create the situation where you are a public authority in your real estate niche. Authorities get more credibility, exposure, and clients. You may have the opportunity to give off more of a homey feel to clients rather than the cold, impersonal touch of a corporate franchise.
4. Your Costs May Be Lower
There are expenses and tools required for any real estate agent. Some offer tools and expenses in exchange for a share of your commissions. Some require a desk fee or an initiation fee. With an independent, chances are your costs will be lower than with an established franchise. You are in a way paying for the privilege of being associated with the franchise and with the tools and resources they offer. Whereas with an independent, that name recognition may not be there.
Buying a Real Estate Franchise
There are also people interested in buying real estate franchises. There are particular factors that should be considered before such endeavors should take place.
1. What Type of Franchise?
Before any franchise involving real estate can be bought the buyer must know what type to invest in. For example, there are residential and commercial real estate, as well as rental property, relocation services and more.
2. Use the Internet for Smart Franchise Searches
Determine which franchises are for sale with smart real estate Internet searches. Discover if any resources, guidance and other information is offered to transition into the investment. Also, find out if there are restrictions on the number of real estate companies allowed in any one area.
3. What is the Investment Required?
Each franchise will require an investment. The more popular and established the franchise is, the more you’ll need to invest. Look at your finances, including your personal wealth, private investors and business loans to see if you have a substantial enough amount to make an investment.
4. Contact the Corporation for the Franchise
The corporations of these franchises offer the tools you need to make an investment work. Those tools include training, equipment, marketing services, and more.
5. Determine All Costs
As with all franchises, there are startup costs. There are also disclosures that can impact your financial bottom line if you don’t pay attention. Are there renewable costs? Do you have to pay a royalty fee to the franchise? Of course, after the paperwork is filled out, chances are no movement will happen until it can be determined that you have the finances to start the franchise and to keep it going once it is started.
6. Get Legal Help For All Documents
No franchise should be entered into without the aid of a qualified real estate attorney. That attorney should have a particular emphasis on real estate franchises and not just on residential or commercial real estate.
Getting involved in or buying a franchise with a focus on real estate can be profitable in today’s times. Research any and all information before you proceed.