HOW TO START A REAL ESTATE AGENCY BUSINESS IN ZIMBABWE

One of the most reputable sectors of the global economy is still real estate. This is the case due to the perception that real estate investing is one of the most wise and profitable. Real estate agent commissions rise in tandem with the constant increase in property values. It is therefore possible to make good money while starting a real estate agency. Let's examine how this can be accomplished.

CAPITAL

The majority of your startup costs for this firm will be covered by marketing, office setup, and company registration. One or two estate agents is a good place to start, and you can add more as you go.

COMPANY REGISTRATION

In Zimbabwe, registering a real estate agency requires completing a number of processes. These processes will be walked through in this article so you know exactly what is required. You can comply with the law by following these steps. Following the law not only helps your company expand, but it also helps it thrive and endure the competition.

1. Register your company as a PLC

Register your company  as a Private Limited Company.

2. Register with the Estate Agents Council

If you want to register a real estate agency, register with the Estate Agents Council for authorization

Requirements of the Estate Agents Council

Requirements of the Estate Agents Council

3. Register with NSSA

To obtain workers' compensation and pension insurance, register with NSSA. NSSA registration services are available to assist with both registration and the monthly returns.

4. Register with ZIMRA

For tax purposes, register with the Zimbabwe Revenue Authority. A tax consultant is another resource you can use for assistance with ZIMRA registration and tax returns.

5. Register with NEC

Get NEC registration with the appropriate NEC for your industry for improved work relationships

STAFF

You will have to work with real estate brokers. These need to be approved by the EAC and registered. The size of your business will determine how many estate agents you need. The benefit is that estate agents' salary are not something you need to budget for. Typically, estate brokers get paid a commission at the conclusion of a transaction. In other words, you provide an estate agent a portion of the fee on the sale of your property in exchange for their services. To handle office tasks, however, you might need to hire an office administrator. This is because you need someone to answer calls and greet walk-in clients, as estate agents are typically out in the field prospecting for clients most of the time.

PREMISES

Large premises are not necessary for this type of business. If at all feasible, provide your agents separate workplaces within a single room. Nonetheless, the area needs to be tidy and well-kept. When your clients attend meetings, they will recall you for doing this. You don't need to bother about purchasing laptops or cars for your offices because most estate agents use their own. However, buying one or two branded cars is not a bad idea if you have the money. It matters where your business is located. Choose a busy, central area with lots of traffic. If you do this, a lot of walk-in clients will come in.

RENTALS OR SALES

Your business may decide to focus solely on rentals, just on sales of real estate, or on both. Sales yield higher returns, but rents will allow you to make quick cash and maintain the liquidity of your company. It is wiser to do both, but in order to maintain both sides of the business, you must select the correct agents. Estate agencies currently charge a commission of three to five percent of the buying price. This implies that you will receive $5,000 if you sell a $100,000 home at a 5% commission. When you place a renter or when the tenant pays rent, you get paid a commission for rentals. Usually, these are lower than the amounts you would receive from sales.

RESEARCH

A great deal of research is required for this kind of work. In addition to keeping an eye on what your rivals are doing, you ought to be an authority in the field in which you work. Be aware of every property in the neighborhood, its sale date, and its sale price. This information can be found online in certain nations, such as South Africa, but in Zimbabwe, you would need to do some manual searching. This data will assist you in delivering superior customer service. You are able to provide precise estimations and support sellers and buyers in making defensible choices.

MARKET

Real estate is constantly in demand, even though demand may fluctuate depending on the status of the economy. You must therefore locate your firm in a region where your chances of finding a solid market are higher. Residential communities near colleges and universities would be one example. These have a lot of rental prospects, and your business can help landlords discover tenants. The rivalry would be fiercer in larger cities like Bulawayo and Harare than in smaller communities. Recognize that. If your company is still relatively new, you might want to start small in order to establish your brand and increase market share. Because the industry is dynamic, ongoing evaluations of the market are also required on a regular basis.

TECHNOLOGY

It is unfortunate that a large number of estate agencies in the nation still lack a significant internet presence. One of them shouldn't be your business. Utilizing technology is essential for corporate marketing. Social media is an inexpensive marketing technique that quickly reaches a large number of clients. If you have the funds, an interactive website might also be beneficial. Make sure you answer every question. Take high-quality pictures of the properties you are trying to sell. In order to decide where to focus the majority of your marketing efforts, it's also critical to monitor the sources of your clients.

OTHER TIPS

You must make sure that you provide ongoing feedback to both the seller and the buyer because the selling process can be time-consuming. Additionally, you ought to collaborate with respectable conveyancers who will uphold the highest standards of professionalism in order to supplement your excellent service. As soon as a contract is signed, don't stop communicating with your clients. If you keep them informed about events, they will probably recommend you to their contacts.

In this field, continuing professional development, or CPD, is also essential. A professional organization such as the Real Estate Institute of Zimbabwe (REIZ) should be joined by your agents. These offer beneficial CPD programs to maintain agents' skills current and sharp. The networking events that REIZ usually hosts will be beneficial to you and your agents as well. With the potential for enormous profits, a real estate agency is a profitable venture. To set your business apart from the competition, you must have strong sales, communication, negotiating, and prospecting abilities.