Real Estate Agent Business Plan Template
You’ve come to the right place to create your real estate business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their real estate agencies.
Sample Business Plan for Real Estate Agents
Below is an example for each of the key elements of a real estate business plan that you can use to create your own well-crafted business plan:
Executive Summary
Business Overview
Barbara Brooks is a newly-licensed real estate agent in Malibu, California. Barbara’s focus of real estate will be centered around Malibu and its surrounding communities. Since obtaining her real estate license last year, Barbara has been shadowing another local real estate agent for training purposes and to learn the proper procedures required to follow. Barbara will be sponsored by Century 21 but will open her own office space to commence her real estate business.
Barbara realizes the highly competitive nature of the real estate industry and is prepared to dedicate all her time, energy, and focus to make her business successful and eventually represent exclusively luxury properties and clients. Barbara’s initial focus will be on first-time home buyers and condo/townhome buyers and sellers.
Product Offering
The following are the services that Barbara Brooks, Real Estate Agent, will provide:
- Buyer’s agent
- Seller’s agent
- First time home buyer
- Condos/townhomes
- Foreclosed properties
- Luxury properties
- New construction
- Property management
- Relocation
- Rentals
Customer Focus
Barbara Brooks, Real Estate Agent, will target those residents residing within Malibu to become her clients. Barbara’s goal is to eventually represent luxury properties and wealthy clients exclusively, but she is aware that she will need to increase her realtor reputation first by increased experience in the field. For now, Barbara will start small with first time home buyers and low to middle income properties, sellers, and buyers.
Management Team
Barbara will be the sole manager and operator of her business. Barbara has chosen to be contracted under Century 21, and will open her own office for her real estate operation. Barbara will be managing her office, network with clients and other industry professionals, and market herself exclusively for now. When her business is more established, Barbara will employ an office manager who will perform the daily administrative tasks that will be required.
Success Factors
Barbara Brooks, Real Estate Agent, will be able to achieve success by offering the following competitive advantages:
Friendly and knowledgeable real estate professional with exceptional customer service skills and as a native resident of Malibu, she is extremely knowledgeable of the local real estate market.
Barbara has become adept at compiling market reports for her clients and local comp reports regarding a specific property.
Barbara has an extensive network of clients, agents, title officers, appraisers, and mortgage loan officers.
Her ability to hustle and work until the client is satisfied is unmatched in the real estate network.
Download the real estate business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Barbara Brooks, Real Estate Agent, is seeking $50,000 in debt financing to launch her real estate business. The funding will be dedicated towards securing a small office space, purchasing office equipment, and funding the marketing company for advertising costs. Funding will also be dedicated towards the third-party CPA that Barbara will contract with for accounting and tax requirements. The breakout of the funding is below:
- Office Lease Up-front Cost: $10,000
- Office equipment: $10,000
- Advertising agency in charge of promotions: $10,000
- Three months of CPA costs: $15,000
- Working capital: $5,000
The following graph outlines the pro forma financial projections for Barbara Brooks, Real Estate Agent:
Company Overview
Who is Barbara Brooks?
Barbara Brooks is a newly established real estate agent located in Malibu, California. Barbara Brooks will primarily service first-time home buyer clients in Malibu and the surrounding communities. She offers home-buying, home-selling, mortgage, title, and appraisal services. Barbara’s personality, customer service, market knowledge, and realtor expertise will set her up for success in the competitive Malibu real estate industry.
Barbara Brooks History
Barbara Brooks is a recent graduate of UCLA and The Realty Academy in Woodland Hills, California. Now that she is fully licensed, Barbara is looking to start her business as a real estate professional. She has been shadowing another local senior real estate agent to learn his tactics, contacts, and processes.
Since incorporation, Barbara Brooks has achieved the following milestones:
- Obtained her license to sell real estate in the State of California
- Located a small office space to be the physical location of her real estate office
- Began networking and making contacts for local mortgage loan officers, appraisers, and title companies
- Met with a local marketing company to design her website, social media accounts, and business cards
Barbara Brooks Real Estate Services
The following will be the services Barbara Brooks will provide:
- Buyer’s agent
- Seller’s agent
- First time home buyer
- Condos/townhomes
- Foreclosed properties
- Luxury properties
- New construction
- Property management
- Relocation
- Rentals
Industry Analysis
The Real Estate industry is projected to grow over the next five years to reach over $176 billion. Rising home prices, increased sales and greater construction combined with higher homebuyer demand are anticipated to boost industry revenue. Furthermore, consumer spending will drive business expansion, and ensuing investor confidence in real estate will help raise commercial transaction volumes. Additionally, interest rates over the next five years will likely remain low, increasing housing affordability.
Furthermore, corporate profit is projected to rise at an annualized rate of 4.7% over the next five years, and businesses will be well-positioned to open new locations or relocate to larger offices.
Download the real estate business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Barbara Brooks will target those residents residing in Malibu and those looking to move to Malibu. Barbara’s goal is to eventually represent luxury properties and wealthy clients exclusively, but she is aware that she will need to increase her realtor reputation first by increased experience in the field. For now, Barbara will start small with first time home buyers and low to middle income properties, sellers, and buyers.
| Total | Percent | |
|---|---|---|
| Total population | 12,620 | 100% |
| Male | 6,271 | 49.70% |
| Female | 6,349 | 50.30% |
| Under 5 years | 253 | 2.00% |
| 5 to 9 years | 404 | 3.20% |
| 10 to 14 years | 906 | 7.20% |
| 15 to 19 years | 622 | 4.90% |
| 20 to 24 years | 582 | 4.60% |
| 25 to 34 years | 800 | 6.30% |
| 35 to 44 years | 994 | 7.90% |
| 45 to 54 years | 2,165 | 17.20% |
| 55 to 59 years | 1,488 | 11.80% |
| 60 to 64 years | 1,193 | 9.50% |
| 65 to 74 years | 1,884 | 14.90% |
| 75 to 84 years | 900 | 7.10% |
| 85 years and over | 429 | 3.40% |
| Total | Percent | |
|---|---|---|
| HOUSING OCCUPANCY | ||
| Total housing units | 7,778 | 100% |
| Occupied housing units | 5,681 | 73.00% |
| Vacant housing units | 2,097 | 27.00% |
| UNITS IN STRUCTURE | ||
| Total housing units | 7,778 | 7,778 |
| 1-unit, detached | 5,172 | 66.50% |
| 1-unit, attached | 591 | 7.60% |
| 2 units | 99 | 1.30% |
| 3 or 4 units | 531 | 6.80% |
| 5 to 9 units | 95 | 1.20% |
| 10 to 19 units | 177 | 2.30% |
| 20 or more units | 304 | 3.90% |
| HOUSING TENURE | ||
| Occupied housing units | 5,681 | 5,681 |
| Owner-occupied | 4,410 | 77.60% |
| Renter-occupied | 1,271 | 22.40% |
| VALUE | ||
| Owner-occupied units | 4,410 | 4,410 |
| Less than $50,000 | 67 | 1.50% |
| $50,000 to $99,999 | 0 | 0.00% |
| $100,000 to $149,999 | 108 | 2.40% |
| $150,000 to $199,999 | 20 | 0.50% |
| $200,000 to $299,999 | 83 | 1.90% |
| $300,000 to $499,999 | 39 | 0.90% |
| $500,000 to $999,999 | 649 | 14.70% |
| $1,000,000 or more | 3,444 | 78.10% |
Customer Segmentation
Barbara Brooks will primarily target the following customer profiles:
- First time home buyers
- Those residents selling, buying, or leasing within Malibu or its surrounding communities
- Residents looking to move or relocate to Malibu in the next six months
Competitive Analysis
Direct and Indirect Competitors
Barbara Brooks will face local competition from other real estate agents with similar business profiles. A description of each competitor realtor is below.
Brian Burdman
Brian Burdman is an established real estate agent in California that serves Los Angeles County, Malibu County, and Pasadena County. He provides expert real estate advice in the fields of selling your home and property management services. He is widely known around town as the realtor who claims they can sell your home within 90 days and provides a personal guarantee that the client will be satisfied with the sale of their home. Brian has an extensive network of contacts and he is constantly on the lookout for prospective buyers by communicating to area realtors regarding their clients’ needs. His personal guarantee states that he will sell your home in 90 days or he will buy it.
Brian Burdman belongs to the Century 21 real estate brokerage firm and his office employs a staff of 10 employees. Other services that Brian and his team offer are leasing services, property management, property listings, selling homes, tenant representation, buyer’s agent, and seller’s agent.
Chris Cardona
Mr. Chris Cardona is a well-known real estate agent in Los Angeles, Pasadena, Bel Air, and Malibu who specializes in the selling and listing of luxury homes. His minimum for real estate representation is $2 million. Chris has been a real estate agent in California for over 20 years and through his extensive networking, customer service skills, and savvy investing, he has been able to work through the ranks and become an exclusive luxury real estate agent. Chris was previously connected to the Century 21 Real Estate Team in California, and ventured out on his own as an independent agent five years ago. Since becoming independent, Chris has been the exclusive agent for some of California’s wealthiest residents. He has represented numerous wealthy individuals by listing their mansions and/or purchasing mansions. Chris spends much of his time networking at industry events or mingling at the local country clubs by playing golf with some of his clientele.
Molly Monroe
Ms. Molly Monroe is also a newcomer to the California real estate industry. She recently graduated from The Real Estate Academy and is looking to be represented with Coldwell Banker. Molly is specializing in first time homebuyers, buyer’s representation, seller’s representation, and property management. Molly has been networking around the local real estate events and is attempting to be the exclusive agent for a mortgage loan company and/or a title company. Molly understands the real estate industry in any market is highly competitive and she knows that business and commissions are built upon relationships.
Molly and Barbara will be competing for the same client profile in Malibu and its surrounding communities.
Download the real estate business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Barbara Brooks will be able to offer the following advantages over their competition:
- Friendly and knowledgeable real estate professional with exceptional customer service skills and as a native resident of Malibu, she is extremely knowledgeable of the local real estate market.
- Barbara has become adept at compiling market reports for her clients and local comp reports regarding a specific property.
- Barbara has an extensive network of clients, agents, title officers, appraisers, and mortgage loan officers.
- Her ability to hustle and work until the client is satisfied is unmatched in the real estate network.
Marketing Plan
Brand & Value Proposition
Barbara Brooks will offer the unique value proposition to its clientele:
- As a native of Malibu, she is extremely knowledgeable of the Malibu community and its real estate market.
- Her analytical skill set allows Barbara the ability to compile market data reports and comp set reports for her clients.
- Barbara has built an extensive network of clients, agents, title officers, appraisers, and mortgage loan officers.
- Barbara will hustle to get the job done and meet her clients satisfaction.
Promotions Strategy
The promotions strategy for Barbara Brooks is as follows:
Networking/Prospecting
Barbara will be attending all networking industry events and actively networking at non-industry events. She will also be a member of local professional associations where professionals in the real estate industry are a part of. She will work to become an exclusive agent for title offices and mortgage loan offices.
Print Advertising/Billboard
Barbara Brooks will invest in professionally designed print ads to display in programs or flyers at industry networking events. She will also invest in two billboards to display in highly trafficked areas of town and/or areas of new-home builds.
Website/SEO Marketing
Barbara Brooks will utilize the same advertising company that designed her print ads and billboards to also design her website. The website will be well organized, informative, and list all their services that Barbara is able to provide. The advertising company will also manage Barbara Brooks’ website presence with SEO marketing efforts so that anytime someone types in the Google or Bing search engine “Malibu real estate agent”, “real estate agent near me”, Barbara Brooks will be listed at the top of the search results.
Social Media
Barbara Brooks will utilize social media marketing to target those younger, tech savvy buyers and clients who receive most of their information via social media platforms. Barbara will purchase targeted ads on Facebook, Twitter, and Instagram to display her ads and services. Since a large portion of her clients will be first-time home buyers, that client profile tends to be younger and utilizes social media more than other demographics.
Pricing Strategy
The pricing of Barbara Brooks will be moderate and on par with competitors so clients feel they receive value when purchasing her services.
Operations Plan
The following will be the operations plan for Barbara Brooks:
Operation Functions:
- Since Barbara is a newly-licensed real estate agent just starting out, she will manage her operation solely. Barbara will be compiling reports, meeting clients, listing properties, printing and organizing real estate agreements, managing her social media business accounts, and managing her own office.
- As her business picks up, Barbara will employ an Office Administrator in the future to file, answer phones, maintain a client database, and any other administrative functions Barbara will require.
- Barbara will hire a third-party CPA to handle her bookkeeping and tax payments.
Download the real estate business plan template (including a customizable financial model) to your computer here <–
Milestones:
Barbara Brooks will have the following milestones complete in the next two months.
4/1/202X – Finalize contract to lease small office space
4/15/202X – Execute marketing agency contract
5/1/202X – Begin networking at local industry events
5/15/202X – Set up small office space with computer/laptop, printer, office supplies, etc.
6/1/202X – Open Office in Malibu, California.
Management Team
Barbara Brooks is a graduate of UCLA and The Realty Academy in Woodland Hills, California. Her passion for real estate began when she was a teenager and she would watch the reality shows that showed the glamorous and luxurious life of a California luxury real estate agent. Barbara became focused while in college and she began learning under other California realtors. Barbara is well aware of the time, focus, and commitment it will take for her to achieve the luxury listings. She is more than capable of the tasks at hand and is willing to undergo the hustle required to make a name for herself in the real estate industry – especially in California.
Barbara will be the sole manager and operator of her business. Barbara has chosen to be contracted under Century 21, and will open her own office for her real estate operation. Barbara will be managing her office, network with clients and other industry professionals, and market herself exclusively for now. When her business is more established, Barbara will employ an office manager who will perform the daily administrative tasks that will be required.
Financial Plan
Key Revenue & Costs
The revenue drivers for Barbara Brooks will be the commissions she will earn upon each transaction she closes. She will charge the market rate of 6% if she is the sole agent and will split the 6% if there is another real estate agent involved.
The cost drivers will be the overhead costs for the office space (rent, utilities, office supplies). Other cost drivers will be the expense of marketing and networking and professional association fees.
Funding Requirements and Use of Funds
Barbara Brooks is seeking $50,000 in debt financing to launch her real estate business. The funding will be dedicated towards securing a small office space, purchasing office equipment, and funding the marketing company for advertising costs. Funding will also be dedicated towards the third-party CPA that Barbara will contract with for accounting and tax requirements. The breakout of the funding is below:
- Office Lease Up-front Cost: $10,000
- Office equipment: $10,000
- Advertising agency in charge of promotions: $10,000
- Three months of CPA costs: $15,000
- Working capital: $5,000
Download the real estate business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Initial Number of Transactions Per Month: 1
- Average Contract Commission: $30,000
- Annual Office Space Lease: $60,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Free Real Estate Business Plan PDF
You can download our free real estate business plan template PDF here. This is a real estate business plan template you can use in PDF format. You can easily complete your real estate business plan using our Real Estate Business Plan Template here.
Real Estate Business Plan FAQs
What is a Real Estate Agent Business Plan?
A real estate agent business plan is a living document or plan to start and/or grow your real estate business. Among other things, real estate business planning outlines your business concept, identifies your target client, presents your marketing plan and details your financial projections using thorough market research.
What are the Steps To Start a Real Estate Agency?
Starting a real estate agency can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your real estate business goals and get started faster.
1. Develop a Real Estate Business Plan – The first step in starting a business is to create a detailed real estate business plan that outlines all aspects of the venture. This should include potential real estate market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your real estate business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your real estate business is in compliance with local laws.
3. Register Your Real Estate Business – Once you have chosen a legal structure, the next step is to register your real estate business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options – It’s likely that you’ll need some capital to start your real estate business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Real Estate Equipment & Supplies – In order to start your real estate business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and developing marketing materials for your real estate business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing strategies such as radio or print advertising.
Learn more about how to start a successful real estate business: