Real Estate is generally accepted to be the land and any other permanent structures like a house, or additions attached to the land, whether natural or man-made.
It is also property comprising of land and the buildings on it as well as the natural resources that reside in the same location.
Long before Nigeria gained independence, people were living in houses, businesses were run, and commerce took place. All that was—and still is—made possible by real estate.
The lands, the structures, and the fixed assets on the earth used in achieving these commercial and personal objectives are all Real estate.
How Lucrative is Real Estate?
The Real Estate business hence has its focus on transacting in the variables that the term Real Estate encompasses; Variables such as land, buildings or structures, and houses. These can be sold and bought, rented, or even hired. Since just about every commercial activity needs real estate to thrive, it turns out that the Real Estate business is a very lucrative one, and deals on the market are done daily.
Investors are also a huge part of the real estate market, seeking to make a profit, but the people that facilitate these transactions are referred to as real estate agents or realtors. They are estate agents that work with businesses, homeowners, and investors for the purposes of acquiring, selling, or renting property.
Over the years, the real estate industry in Nigeria has experienced robust expansion, with construction projects cropping up by the minute. This is a clear indication that being a Real Estate agent if done properly, can effectively mean a turn in the finances of the individual concerned, better standards of living, and access to the connections made in the marketplace.
Steps to Becoming a Real Estate Agent
If you are clamouring to become a real estate agent, there are certain criteria you must meet in order to be recognized and also thrive in the industry, below are few tips on how to become a real estate agent:
1. Reevaluate Your Decision To Become a Real Estate Agent
Everybody has different reasons why they branch into different fields of life, and despite what you might have heard, motivation matters. Of course, there is the need to make a decent living, but if motivation stops there, the possibility of your foray into the industry being cut short is very high.
Passion, interest in the property, and development are useful motivations to have. It is also wise to ensure that the decision was not taken on the spot and that it is a well-thought-out one. This also reduces the chances of failure by a lot.
2. Understand the Business Basics
Real Estate generally, is not easy work. The average real estate agent spends between 15-20 hours per week on the job, and while they’re not actively transacting, they are spending their ‘free’ time sourcing for clients and trying to improve upon themselves.
Also, Real Estate agents are of many types, and although some people/firms do all of them at once, others choose to specialize. It is important to note these things as someone with an interest in becoming a real estate agent.
Typically, the best course of action would be to go through tertiary education studying a course such as Estate Management, but most people interested in becoming real estate agents are already doing/have completed varying programs entirely unrelated to real estate. This does not signify the end for them.
There are online courses one can take, and additional certifications to be had to improve one’s standing. Also, signing up for training with schools and established real estate companies is a plus because the structure in those places will expose a person to the tricks of the trade and generally give them an edge.
If you decide to work for the company or school after training is done, then you need to read no further. If you intend to start independently, keep going.
4. Strategic Planning
As earlier stated, the Real Estate business is lucrative, but in the same space, it is competitive. Going into it fresh out of training with no plans for how to go about it or what area to specialize in or if to generalize is not the right way.
During training, it is useful to check the areas that are your strengths and eventually prepare to delve into that part of Real Estate. It will make it easier for you.
5. Capital Raising
The Real Estate business in Nigeria is capital intensive, but it all depends on the scale you are willing to start at. Raise funds to meet your goals, or reach out to investors with your strategies and plans well laid out for investments. Again, it is dependent on the scale you wish to begin on, but capital is very important.
6. Register the Business/Get Licensed
Without being a recognized commercial entity licensed to do business, none of the above can prove useful, and large transactions that require documentation and authentic paperwork will slip by you. Registration with the Corporate Affairs Commission (CAC) will do at the start.
A license from the Real Estate Transaction Department in your state of location is not a must, but like the registration, it greatly improves your chances of standing out and being up to standard. A lawyer can get both done easily at affordable rates. A registered and licensed business is taken more seriously than one that isn’t.
7. Office Space
While most of the real estate agents practising in Nigeria do not have offices, it all depends on the scale you start at. It is advisable to get an office where clients and prospects can meet you at. An office gives the impression of being solid and trustworthy. An office is also a place from which a brand can be built and the company marketed.
8. Real Estate Associations
Real Estate associations like the Association of Estate Agents in Nigeria(AEAN) and the Real Estate Developers Association of Nigeria(REDAN) are front-standing groups in Nigeria. These organizations hold benefits such as expanding your network and providing you with the information needed to grow your business.
How can I promote myself as a new real estate agent to potential clients?
Beginning your professional life by contacting family and friends as well as building a marketing network might be beneficial. You can generate news about your new career by contacting new home builders, other realtors, and even lenders. You can also utilize social media to construct your agent profile and generate publicity for yourself.
What Does It Mean to Have Both a Reciprocal and a Recognized License?
License Reciprocity happens when one state decides to honour the official real estate license of another state. This reduces the amount of time and effort required to complete a transaction that involves more than one state.
There are a number of states that recognize licenses from other jurisdictions, particularly those that are adjacent to one another. The National Association of REALTORS® maintains a tracking tool called “Broker and Salesperson License Reciprocity and Portability.”
What Obligations Are Imposed by the Code of Ethics of the National Association of Realtors?
The REALTORS Code of Ethics is organized into three primary sections, titled “Duties to Clients and Customers,” “Duties to the Public,” and “Duties to REALTORS,” respectively. Each of these sections outlines particular requirements for REALTORS to follow.
Real Estate Agent Job Duties
Obtaining a license is the simple part, as one would expect. It takes a lot of effort to become successful as a real estate agent or broker and to make an income that is stable over time. In the majority of instances, a significant investment of time, effort, and sometimes even financial resources is required.
Various Administrative Obligations
To begin, effectively managing a substantial amount of administrative work is a prerequisite for becoming a sales agent or broker. When there are several listings, the legal paperwork needs to be exact, and the events need to be coordinated.
There is always the possibility that you will need to:
- Documents, agreements, and leasing records pertaining to real estate should be finished, submitted, and filed.
- Appointments, showings, open houses, and meetings all need to be organized.
- Produce and disseminate promotional items such as flyers, newsletters, and other printed materials.
- Establish and maintain filing systems for documents, correspondence, and other types of material, using both paper and computer means.
- Establish budgets on a weekly, quarterly, and annual basis.
- Develop marketing plans for listings
- Develop and improve customer database systems.
- Conduct research on current listings, those that are pending, and those that have already been sold, and create comparative market analysis (CMA) reports.
- Immediately attend to incoming messages, emails, and calls.
- Maintaining one’s online presence by use of social media and websites
If a sales agent or broker is well-established, they may have the financial means to employ an assistant who can take care of part or all of these administrative responsibilities. When you are first beginning your career in the sector, it is likely that you will be required to handle all of these responsibilities on your own.
Think about how skilled you are at paying attention to detail and completing paperwork. Do you have the ability to stay organized as well as the motivation to undertake these administrative responsibilities on a consistent basis? Are you able to balance many tasks on a deadline?
Generation of Leads
Finding customers is one of the most important aspects of being successful as a sales agent or broker. After all, there would be no transactions, and consequently, there would be no commissions, if there were no buyers and sellers.
A real estate sphere of influence (SOI) strategy is a common technique to create relationships and produce leads. This type of strategy focuses on producing leads through people you already know, including your:
- Partners in business activities
- Additional social contacts
In light of this, a typical day for you would consist of meeting and talking to a large number of people, passing out business cards, exchanging contact details, and putting away contact information in order to build out your SOI. Follow up with the people you meet by phone calls, emails, snail mail, or text messaging after the initial contact that you make with them. This will help ensure that they remember your name in the future.
Everyone you meet has the potential to become a customer at some point in their life because the majority of people will buy, sell, or rent property at some point in their lives. Are you okay with the idea of selling yourself? Are you open to generating business through your connections with family, friends, neighbors, and other people in your social circle?
Working With Customers in the Real Estate Industry
You’ll spend some of each day working directly with clients, whether they’re buyers, sellers, or renters. This might be a rewarding and enjoyable experience. Also, keep in mind that it might not take place during normal business hours in some cases.
This indicates that you could have to give up part of your personal time, which includes the time you spend with your loved ones and friends. If something comes up at the very last minute, it can need you to change the plans you already had.
As the person who represents the person who is selling the home, you will spend time preparing listing presentations, taking digital photographs of properties, staging homes so that they show well, marketing properties, and hosting open houses. In addition, you will represent the person who is selling the home.
The person who is purchasing a home is represented by a buyer’s agent, and a buyer’s agent may spend time searching through the Multiple Listing Service (MLS) to identify listings that are acceptable for potential purchasers and deliver those listings to those buyers.
You will also show the property to potential purchasers who are interested in purchasing it, and you will accompany your clients to other activities such as meetings with loan officers, inspections, closings, and other events for which your presence is either required or requested.
Final Wrap Up
There you have it. Following these steps judiciously will ensure that you become a certified practising real estate agent, but only your zeal and passion would make it successful for you. Good luck!