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Franchise Real Estate: How to Buy a Business in the Housing Market

Are you considering to buy a franchise in real estate?  Real estate franchises are attractive to many first-time franchisees and the market is hot!  Learn more about what real estate franchise opportunities exist and, what you should know before you buy, in this article.

The definition of Real Estate Franchising

A real estate franchise is a business model where a company or individual licenses the use of their franchisor’s trademark and offers services to customers through remote services or at a fixed location.

How franchises in real estate work

There are two types of franchise real estate businesses: brokerages and dealerships. The difference between the two vary in terms of their relationship to the customer.  A brokerage usually interacts with the customer, while a dealership typically only interacts with potential buyers.

The franchisor will help by giving their franchisee a list of things they need to do and how they need to be seen to be successful with their business.  One of the advantages of becoming a franchisee is that you will have access to resources, marketing, technology, and support that you need to help make your business successful as a real estate professional.

Examples of real estate opportunities

There are four key areas that you can provide in franchise real estate.

  1.  Inspection Services  Property inspection services are a critical in the home buying process, as they allow buyers to better understand what they are getting into before committing to purchasing the property. The inspection also provides valuable information about what is included with the property that will be purchased.
  2. House-flipping  Flipping houses can be quite profitable. However, it typically requires a significant amount of capital to get started.  House flipping services are available for people who want to start flipping but don’t have the funds, time or expertise to do it on their own.
  3. Home liquidation services  A home liquidation service franchisee helps people sell their homes fast. You will understand the current market value of properties.  Services include marketing, paperwork, providing clients with a customized plan to sell their home and following up with everyone involved to ensure everything is in order.
  4. Property management Services   Property management services can be a full-service solution to the property owner to help keep the properties in good condition.Property management tasks include.
  • Inspecting the property
  • Implementing preventive measures
  • Reducing upkeep costs
  • Preparing for emergencies

How much does a franchise real estate business cost to start?

The amount of your investment depends on a few factors. In general terms, you can expect an initial franchise fee to be in the range of $10,000 to $50,000, with a total of investment range to be a few hundred thousand dollars.

Your total initial expense will depend on the franchise you buy, and the operating model it works under.  The bigger the name, the more expensive the franchise will be.  You will also have to pay ongoing franchise fees (royalties).

What is the largest real estate franchise?

Keller Williams Realty is an American and international real estate franchise with headquarters in Austin, Texas. It is the number one franchise in the United States by sales volume, number of agents and units sold.  It is also the largest real estate franchise by number of agents in the world.

Keller Williams was founded in 1983 by Gary Keller and Joe Williams.  It grew from a single office in Austin to over 940 offices with over 180,000 associates worldwide as of May 2018.  Numerous publications, including Entrepreneur and Forbes has recognized Keller Williams as one of the highest rated real estate companies.  Career Bliss has listed it as one of the "happiest companies to work for".

Which real estate franchises are the most profitable?

The franchises in real estate with the best profit opportunities include:

  • Century 21
  • RE/MAX
  • Keller Williams
  • HomeVestors of America
  • Coldwell Banker
  • Homes & Land Affiliates
  • National Property Inspections (NPI)
  • 14Moves
  • Electronic Realty Associates (ERA)
  • Weichert Real Estate Affiliates
  • Real Property Management (Click here to learn more.)
  • Realty One Group
  • Help-U-Sell Real Estate

Conclusion

Just like any other business, real estate franchising is not without any risk.  However, its ease of start-up and already proven names and business reputation will help you grow your real estate business more successfully.  With hard work and dedication, you can slowly leverage your franchise real estate business to greater heights, gaining steadier income growth and more possibilities.

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