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How Do I Start a Real Estate Broker Business?

Laura M. Sands
By
Updated: May 17, 2024

You may start a real estate broker business by first obtaining a broker’s license and then establishing a real estate company. Upon doing so, you may invest in office space or decide to work from home and hire real estate sales agents to do the same. While establishing a real estate broker business, it may be a good idea to focus on a particular type of property sales and listings. Purchase necessary supplies that you and any real estate agent professionals will need and begin advertising your business.

In most jurisdictions, a license is required to engage in real estate sales as a profession. In addition to sales agents needing a license, brokers also usually need one to open a real estate broker business. Often, such can be obtained by majoring in a real estate subject in college and then taking a required real estate exam, or a broker’s license may be earned after becoming a real estate sales agent and then training to become a real estate broker. With either route, the successful passing of a licensing examination is usually required before you can officially act as a broker.

After obtaining a license, you may open a real estate broker business by filing the necessary paperwork with your government to establish a legal business entity. Upon doing so, you may then choose to rent or lease office space where you and any agents who contract with your company can work. Some agents prefer to work from home, but may still need office space for meeting clients and performing certain administrative tasks.

Opening a banking account specifically designated for your real estate broker business is important. In many jurisdictions, this is required so that personal funds are not mixed with business funds. You may also want to establish separate business credit accounts to pay for business expenses.

Purchase necessary supplies such as for sale signs, company letterhead, business cards, fax and copying equipment and open house signs. Be sure to join any necessary associations, as well as groups that you aren’t required to join, but that may benefit your business as it grows. Local real estate clubs, service organizations and chambers of commerce may be good places to advertise your business and gain potential customers.

While you may operate a real estate broker business alone, most brokers prefer to contract a team of professional real estate agents, instead. Some may specialize in being a buyer’s agent, while others specialize in bringing new home sale listings into your office. Hiring a variety of agents with different specialties may help your business grow at a faster rate than if you were to work alone.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Laura M. Sands
By Laura M. Sands
Laura Sands, the founder of a publishing company, brings her passion for writing and her expertise in digital publishing to her work. With a background in social sciences and extensive online work experience, she crafts compelling copy and content across various platforms. Her ability to understand and connect with target audiences makes her a skilled contributor to any content creation team.
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Laura M. Sands
Laura M. Sands
Laura Sands, the founder of a publishing company, brings her passion for writing and her expertise in digital publishing...
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