Building A Top Real Estate Agency in Nigeria
Are you thinking of starting a real estate agency in Nigeria? This is an excellent decision that comes with a lot of responsibilities. Helping Nigerians buy or build their dream homes or acquire a choice property is a big responsibility. As such, thousands of people in Nigeria are seeking information about becoming a real estate agent.
Building a real estate agency in Nigeria requires more than a peripheral understanding of the industry. Hence, we will walk you through expert tips that will assist you in building a real estate agency. This article will provide details that will ease your transition into the real estate agency industry.
Introduction to real estate agency
The migration of people from rural to urban centers was the birth of the real estate industry. Upon getting to their urban destination, migrants need to find properties for residential purposes. Additionally, migrants need space for their business activities.
A real estate agency is a business that requires an agent to unite buyers with sellers who need real estate properties. Matching buyers to desired properties is their foremost responsibility.
The entire activities of the real estate agent depend on the instructions provided by the property owner (principal). Real estate agents play the middle man role in uniting the property owner and seller. On each sale, they earn commissions.
Real estate agents are not satisfied with selling properties. Their goal is to ensure that the buyer appreciates the property he is offering them. Hence, a real estate agency or broker recruits expert agents to oversee their activities.
Functions of a real estate agency in Nigeria
A real estate agency or broker has a lot of responsibilities that make them indispensable in the real estate industry. They offer real estate properties to buyers and help with managing such properties.
First, let us consider some of the real estate properties offered by brokers in Nigeria;
- Land: the land is the foremost real estate property. Real estate agents offer vacant land that is undeveloped to clients. Developers subsequently work on the vacant land to increase its value.
- Residential property: one of the popular real estate properties is residential property. Residential properties include houses for individuals or families or a group of people.
- Commercial property: agents also offer properties (vacant land or developed properties) for business purposes. Such properties enable them to carry out business operations.
- Industrial property: industries need properties to support their properties. Real estate agents often provide properties, which are far from residential areas.
How real estate brokers interact with buyers and sellers
A real estate agency in Nigeria negotiates and arranges real estate transactions. When a person shows interest in a property, they progressively work to ensure the buyer gets the property at the best price.
They oversee the entire sales process and work on the agreement and contract documents for the property. Let’s discuss how real estate agents work with both the buyer and the seller.
Real estate agency and seller
Real estate brokers work for the seller to deliver their properties to willing buyers. Properties offered to willing buyers are not the broker’s property but belong to the principal. Brokers are licensed, and they have excellent negotiation skills. With their skills, they expertly negotiate with buyers and help sellers get deserved income from their property.
Here is a highlight of the responsibilities and tasks of a broker;
- Brokers through agents list houses and properties for sales on their website.
- They share the listed properties with other agents who help them get the best buyer for such properties.
- Brokers share commissions with agents who provide successful buyers for their properties.
- Assist property owners with the best sales option for their properties.
- Supervise the entire sales process and provide quality reports and feedback to the property owner.
- Provide available offers to the property owner for consideration.
- Work alongside the seller to prepare documents and explain the functions of the documents to the owner.
- Assist property owners with closing sales of their properties and help them move out from the property.
- Oversee the entire transaction process for the property.
Real estate agents and buyers
After listing a property for sale on their website or through other mediums, brokers allow real estate agents to bring buyers who make offers for their properties. Upon getting a list of willing buyers, an agency speaks with these willing buyers to find the most suitable option for the property.
Here is a highlight of the responsibilities and tasks of a broker;
- List homes and properties to enable buyers to find properties that meet their requirements.
- Provide information about the property and the benefits of securing a property in a location.
- Assist buyers with financing by providing loan options.
- Discuss details about the pricing, and negotiate directly with the buyer until they reach an agreement.
- Brokers ensure buyers inspect the property they are buying and oversee transactions activities.
- Deliver property documents and explain these documents to the buyer.
- Ensure they get documents and coordinate handling of the keys to customers.
How to build a successful real estate agency in Nigeria
Having identified the responsibilities of a real estate agency in the real estate industry, let us discuss ways to kickstart your career.
Take Pre-Licensing Course
A real estate broker must have a license to begin sales and listing of properties. Thus, the first step is to acquire a professional license. Every state in Nigeria requires brokers to get an operating license before they offer properties to buyers.
Brokers need to undergo proper training to enable them to get the license. The training will help them become ready for action in the real estate industry. Undergoing this training will help them become acclimated with activities in the real estate industry.
Taking a pre-licensing course introduces brokers to real estate principles, practices, and the legal aspects of the industry. Not all states in Nigeria require this examination. Hence, speak with experts in your state to identify the requirements and identify the available training options.
Take licensing examination
After undergoing detailed training, you can then proceed to take the licensing examination. In some states in Nigeria, the requirement for either taking licensing examination or getting the license includes;
- You must be at least 18 years old.
- Have a minimum educational qualification of NECO or WAEC or other school leaving certificate.
- You need professional experience in the real estate industry.
If your states require taking the examination, you need to get information about the examination date, venue, and other requirements. Your initial training and knowledge of the real estate industry will decide if you are successful in the examination or not.
After getting your license, you need to register your business with the Corporate Affairs Commission of the Federal Government of Nigeria. Only then can you legally launch your company and provide real estate solutions.
Work on your business plan
After getting your license, you need to work on your business plan. Note that you may choose to design your business plan before taking the licensing examination, as it will help you understand other intrinsic aspects of the real estate industry.
You are entering a highly competitive market, and you need to be ready for the competition in the market. Your business plan should address your financing, as this is a vital factor that defines how successful you will be in the real estate industry.
Furthermore, You work on your recruitment plans. How are you going to recruit agents who will work for your agency? What will be the minimum requirement for selection? Will they be commission-based agents or have a fixed salary? Endeavors to answer these questions in your business plan.
Additionally, your business plan should provide information about your target audience. Finally, include a quality business analysis. Doing all these will ensure you are ready for action in the market.
Address Marketing and Build your brand
The next step is to work on building your brand. Without developing your brand, it will be hard for anyone to trust you to deliver the property they desire. You should assure your customers that you have something huge for them, and they should see clear evidence.
Building your brand credibility starts with your marketing plans. There are several marketing options available for your agency in Nigeria. Top alternatives include social media, real estate portals, print media, billboards and signboards, professional websites, televisions, radio stations, etc.
This article has provided details about the best way to build a real estate agency in Nigeria. We have identified the responsibilities of brokers to the buyer and seller of a property. These details will help you start your agency and deliver quality services for buyers. You need to hire expert real estate agents to ensure the delivery of quality services.
Do you have more questions about the real estate industry or want to speak with an expert? Schedule a consultation with Landshop today.