Solo or firm: What is the best way to succeed as a real estate broker?
Find out who would be suitable for such an area and market to them specifically. Market knowldge gives an agent an edge while a firm inspires confidence in its buyers. Photo / File
What you need to know:
- Succeeding in an industry that is as highly competitive as real estate requires time and effort. The goals you set as a firm or an individual will help you navigate your path to success and allow you to measure your progress.
A real estate agent, also known as a broker, supports people in the practice of buying, selling, renting land and properties. While it sounds simple on the surface, there is a big difference between those that make it and those that fail.
Whether they work with a company or on their own, real estate agents usually work on commission, but how much one earns varies widely depending on their input.
Succeeding in an industry that is as highly competitive as real estate requires time and effort. The goals you set as a firm or an individual will help you navigate your path to success and allow you to measure your progress.
Before you take the leap
Baker Busuulwa, a real estate dealer, says that those that go solo need to first understand the different dynamics of this business, getting to understand and follow the right procedures end to end before engaging in any transaction.
He says most real estate firms focus only on getting clients and making sales, but it is essential to know where you are heading.
He explains that to set your solo real estate business off in the right direction, start by understanding your strengths and weaknesses, and what you want to achieve as a person.
“As a firm, after examining the real estate market, examine your competition. Knowing who is doing what and how well they are performing will help you identify places that are underserved, as well as which sectors are flooded with agents competing with each other,” he notes.
He explains that when one goes solo, they have an upper hand with their indisputable knowledge of the market at all times, basic real estate training and customer care that is satisfactory.
“Market knowledge is one of the best indicators of a real estate agent’s level of experience and skill. Identifying your customer base and what they want most is a good thing to start with. Personally, I target Ugandans in the diaspora, foreigners and diplomats. This calls for me to demarcate high end places and properties that suit their interests,” he says. Busuulwa says it is easier to thrive going solo because it is easier to build a solid reputation that you can personally protect.
He advises that if one wants to become a more successful solo real estate agent, they must strive to be among the best in the industry, and that means consistently brushing up on their personal attributes and their business practices.
Case for the firm
Frank Kitayimbwa, another real estate broker in Katwe believes that it is easier to succeed in a firm since firms are trusted unlike people who go solo that are oftentimes seen as crooks.
He says since solo brokers want a huge cut from the property, they tend to increase property values by a certain percentage from the actual purchase price which has ruined their reputation.
“People should certainly learn to work with firms, solo brokers cannot sustain business for long before they are busted. People like the easier way of doing things but this has serious consequences,” he says.
He adds that although there are a number of hardworking firms with a clean record, it is crucial to be aware of these stereotypes, so you know what you are up against.
“Creating a network of brokers in all the areas of interest calls for teaming up with other dealers in the different regions. This means you will struggle harder to succeed in the business if you decide to go solo. Two heads are better than one and there is truth to it when it comes to the real estate industry,” he says.
Solo is more lucrative
Moses Kato, a broker in Rubaga says although firms can thrive much better, trouble comes with splitting commission which may cause some misunderstandings. He opines that going solo can ultimately help one increase their income and grow their business.
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Kato argues that real estate agents have to be in the know of current real estate laws and regulations, keep up-to-date with market trends, and also be an expert on the local areas, something that cannot easily be done solo.
He, however, tips those that decide to go solo to build personal relationships with their clients so that they come back to them in the future. These, he says are more likely to refer you to their friends, family and colleagues, thereby widening your circles.
“Clients referred to you by a trusted party will be more inclined to trust you and your expertise, which leads to more positive interactions and better results. It is critical to build strong relationships and to expand your sphere of influence to build your client base. Such a network will guarantee you work.”
