A real estate business plan is essential as it provides the groundwork and planning for any new realtor business. Using our free real estate business plan template, you can get this essential document set up quickly. This template already includes all of the required fields to ensure you outline your business goals realistically and professionally.
[Sender.Company] , located at [Sender.State] , is a new (Add type, i.e., residential, commercial, industrial) real estate brokerage firm specializing in (Add specialty). The company will operate professionally, conveniently located next to [Sender.StreetAddress] [Sender.City] [Sender.PostalCode] . [Sender.Company] is headed by [Sender.FirstName] [Sender.LastName] , (Add important credentials of the Sender).
[Sender.Company] ’s services include:
Listing rentals for landlords. Assisting tenants in finding rentals. Selling homes. Helping buyers find homes.By serving both renters and homeowners, [Sender.Company] hopes to become a long-term partner with each client rather than part of a one-time transaction.
In this section, you’ll need to provide more in-depth information regarding your real estate business. What are your goals? What do you hope to achieve? Provide enough relevant information to establish who you are as a real estate business clearly.
The business is currently being run out of (address).
Since incorporation, the Company has achieved the following milestones:
Found office space and signed Letter of Intent to lease it Developed the company’s name, logo, and website located at (Enter website) Hired an interior designer for the decor and furniture layout Determined equipment and fixture requirements Began recruiting key employeesThis section of the real estate business plan template is where you’ll go into more detail on specific objectives. You’ll also need to demonstrate a clear understanding of your industry and the audience you’ll be targeting (i.e., who will this business help?).
[Sender.Company] ’s long-term goal is to become the number-one name in residential real estate brokerage in terms of the right balance of price and customer service quality.
We seek to do this by ensuring customer satisfaction and developing a loyal and trusting clientele.
The following are a series of steps that will lead to this long-term success. [Sender.Company] expects to achieve the following milestones in the following (Add number) months:
Finalize lease agreement
Design and build out [Sender.Company] office
Hire and train initial staff
Kickoff of the promotional campaign
[Sender.Company] will serve the residents and businesses in (Enter company location).
The area we serve is affluent and has the disposable income/profits required to demand off-premises catering services.
Description: Temporary renters or those saving towards a purchase. Some are lifelong renters. Age Range: _______ (Avg. age: 25) Unique: Fast apartment turnover rate. Description: Mostly newcomers, often from a distance. Age Range: _______ (Avg. age: 33) Preferences: Value brokers knowledgeable about both listings and the local real estate market. Description: Mostly relocating, some upgrading or downsizing within the community. Age Range: _______ (Avg. age: 45) Preferences: Seek brokers skilled in pricing, staging, and negotiation.Description: Owners renting out space, from professional landlords to those capitalizing on extra space.
Preferences: Value brokers adept at pricing, finding tenants, and handling initial inquiries.Last year, the U.S. real estate sale and brokerage agencies generated $_______ billion in revenue and employed _______ people.
_______ businesses operated in this market, averaging $_______ per business. Average employee wage in the industry was $_______.Brokerage fees, commissions, property management, consulting, and appraisal fees are major revenue sources.
Modest economies of scale exist, favoring larger firms, though many remain too small to fully benefit.
[Sender.Company] will be able to provide clients with the following services:
By listing rental and for sale condominiums, apartments, and homes on its own website – including its clients and others, [Sender.Company] will develop a resource that is known in the local area as a go-to site for the most comprehensive real estate listings.
Listing Services
[Sender.Company] will promote its client’s properties in local newspapers, magazines, and even television when appropriate, offering great visibility for the properties it lists.
Finding Rentals
For a standard one-month broker’s fee, [Sender.Company] will match clients seeking rental apartments with apartments meeting their specifications as closely as possible, choosing from listings by [Sender.Company] , by other brokers, and by landlords.
Selling Homes
For the standard 3% commission, [Sender.Company] will find buyers, negotiate on behalf of the seller, and process the seller’s paperwork related to the sale.
Buying Homes
For the standard 3% commission, [Sender.Company] will find appropriate homes to buy, submit offers for the buyer, negotiate on behalf of the buyer, and process the buyer’s paperwork related to the purchase.
Homeowner Information Sessions
Seminars at the real estate office or at larger venues when appropriate will be offered to present topics such as preparing one’s home for sale, how to look for undervalued properties, what type of improvements have the greatest effect on a home’s value, etc
As [Sender.FirstName] [Sender.LastName] understands, the key to a successful real estate brokerage business is building referrals and a long-term reputation as a trustworthy agent in the community. [Sender.FirstName] [Sender.LastName] will continue to reach out to past clients in future years to answer questions and to continue to develop a relationship.
The Marketing Plan is an incredibly important aspect of your real estate business plan template; marketing is the thing that brings your real estate business to its audience. As such, you need to research and cultivate it carefully.
The [Sender.Company] brand will focus on the Company’s unique value proposition:
Client-focused residential real estate brokerage services, where the Company’s interests are aligned with the customer
Service built on long-term relationships and personal attention Big-firm expertise in a small-firm environment [Sender.Company] will initially invest significant time and energy into contacting potential clients and building an initial client base.
Encourage Referrals: [Sender.Company] will incentivize clients for referrals, fostering organic growth.
Strategic Networking: [Sender.Company] will actively network with home contractors, real estate developers, and businesses importing employees, generating qualified leads.
SEO and PPC Focus: [Sender.Company] will invest in local SEO and pay-per-click advertising, optimizing website traffic.
Content-Rich Website: The website will showcase [Sender.Company] as a reputable real estate brokerage.
Community Engagement: Free seminars will be offered to familiarize residents with [Sender.Company] 's expertise and character.
[Sender.Company] ’s pricing will rely on the standard industry rates to neither be perceived as a luxury nor a discount broker. 3% is the commission on sales and 3% on purchases.
Apartments and other rentals will have fees paid only by the tenants at the standard rate of one month’s rent. By seeking quality clients and maintaining long-term relationships with them, [Sender.Company] will fend off pressure to discount their rates, even in down markets.
Your operations plan should consist of a few actionable steps that’ll get your real estate business to reach its goals.
[Sender.Company] will carry out its day-to-day operations primarily on an appointment basis.
[Sender.FirstName] [Sender.LastName] will work as needed, including weekends and prime showing times, and generally take days off on weekdays.
[Sender.Company] employs (Assistant.Name), an experienced assistant, to handle various administrative duties in the office. (Assistant.Name) has worked with C-level executives and possesses significant administrative experience.
The Financial Plan is one of the most important, if not the absolute most important, parts of your real estate business plan.
[Sender.Company] ’s revenues will come primarily from the commissions earned from client real estate sales, purchases, and rental fees. Half of the deals each quarter are expected to be rentals, one-quarter of sales, and one-quarter of purchases.
As with most services, labor expenses will be key cost drivers. [Sender.FirstName] [Sender.LastName] and future brokers will earn a competitive base salary. Furthermore, the costs of transactions are projected to be roughly 40% of regular commission revenue and cover the advertising of listings, travel and supply costs for clients, and other direct costs for each deal.
Moreover, ongoing marketing expenditures are also notable cost drivers for [Sender.Company] .
[Sender.Company] is seeking total funding of (Enter the amount needed) of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
Store design/build: $(Enter value)Working capital: $(Enter value) to pay for marketing, salaries, and lease costs until [Sender.Company] reaches the break-even point
The following table reflects the key revenue and cost assumptions made in the financial model.