How to become an estate agent: the step-by-step guide

What do estate agents do?

Estate agents sell or let properties on behalf of clients, with many providing both services. They can focus on either residential or commercial properties.

Estate agents make money through fees and commission. But this isn’t in return for doing minimal work, as many people think, so you should be prepared to put in maximum effort.

Working hard will be worth it – the way the market works means there’s a big opportunity for passionate people. What’s more, you get to be your own boss and become completely self-sufficient.

Estate agent skills

You need to have charm and savvy, with the confidence to engage with people on a regular basis. Whether it’s negotiating prices, dealing with tricky clients or searching for tenants, great communication is vital.

You’ve got to have patience and perseverance too. Sometimes leads don’t work out, properties don’t sell, and deals fall through. As with any business, you should have the drive and determination to succeed and overcome any setbacks.

Other than that, estate agents need strong commercial awareness, with a grasp of marketing and sales. Remember, clients depend on you to sell or let their properties, so you need to know how to market them.

You should be aware of the different marketing channels – and which ones get the best results.

Estate agent qualifications

If you’re setting up your own business, ideally you’ll have experience in the industry, as you need the know-how to compete with the major players.

That being said, you don’t need training or formal qualifications like a degree to become an estate agent. But if you’ve studied anything like business, surveying or civil and structural engineering, you’ll also have an advantage.

You can take specific courses like Propertymark Qualifications, which offer training in areas including valuation and property management.

Taking specialist qualifications will help you gain a client’s trust and show authority. You’ll always need to stay on top of laws and regulations, and you’ll have to be thorough and organised when preparing contracts and inventories.

Estate agents usually need to have a driving licence in order to get from property to property – and sometimes take your clients, too.

Setting up an estate agency – 4 steps to follow

1. Write a business plan

Every new business should have a business plan. It’s the document that establishes what your business is trying to do, and how it will grow and succeed. Whenever you hit a hurdle or need to make a strategic decision, you’ll be able to refer back to your business plan for guidance.

Writing a business plan makes you think about your competitors and what niche you’re trying to fill.

We have some top tips for writing a business plan. But a good place to start is to decide on the legal structure for your business – do you want to become an estate agent on a self-employed basis? Or do you want to set up your estate agency as a limited liability company?

2. Find your business premises

When it comes to your business premises, you’ll certainly want a prime location with lots of footfall, which means your rent may be expensive.

Make sure you research potential locations and work out the average rent for different properties in the area. Then, calculate what premises you can afford, keeping your running costs in mind.

Read our guide to office relocation to learn what to look for when choosing a business premises.

3. Market your estate agency

You should have a strong presence in the local community to buy, sell and let properties for your clients.

• give your brand careful consideration, as image is really important – your clients have to trust you. Your brand can play on your niche, emphasising your unique selling points (make them memorable)
• make sure you know all the channels to advertise properties. You can use newspapers, leaflets, and websites like Zoopla and Rightmove effectively. Remember, you’re not just promoting properties, you’re also getting your brand front-of-mind for potential clients
• door to door leafleting can be effective, especially for start-up companies – it’s often low-cost and highly targeted
• brush up on online marketing. You’ll want to have your own website and know how to craft effective SEO (Search Engine Optimisation) and social media strategies

4. Consider insurance

Building trust with your clients is crucial, and having the right protection in place will help your case.

The insurance estate agents should think about includes:

• public liability insurance, which can protect you against compensation claims from members of the public
• professional indemnity insurance, which can cover you if you give faulty advice or a client suffers a financial loss because of your business
• employers’ liability insurance, which can cover you if an employee becomes ill or injured as a result of your business

You can also add other covers like buildings insurance, business interruption insurance, and personal accident insurance.

How to become an estate agent with no experience 

If you’ve read the above and are nervous about where to start, don’t worry, because you can still become an estate agent with no experience. To help with both gaining experience and confidence, it can be a good idea to work in an established estate agency first.

As well as helping you learn on the job, you’ll be building up a valuable network of industry contacts to help you later in your career.

This can also help with your company reputation, as you’ll be able to list your previous work experience and potentially reassure clients.

Once you’ve gained some industry experience, you can follow the steps above and start your own estate agency business.

How to become an online estate agent

You could even start an estate agency from home, which means all you need is a laptop, internet access, a phone, and a vehicle (it’ll make it easier to visit clients and arrange viewings). This helps keep your start-up costs low.

While many of the steps above will be relevant for setting up an online agency, perhaps the most important step here is to create a website. It’ll need to have a simple, unique design that harnesses SEO principles so people can find your site.

Visitors to your website should be able to find the information they need quickly and easily, both on desktop and mobile. It can also be a good idea to create a customer portal so existing customers can log in and manage their account anytime.

Online estate agencies like Purplebricks and OpenRent show that it’s possible to achieve success online. These businesses have a fresh offering and innovative technology, so think about how your business could harness the power of the internet, too.

What next?

Setting up your own estate agency will no doubt be an exciting venture, but it won’t be a small undertaking. Think carefully about everything we’ve talked about in this guide, and with the passion and drive, you could start taking your own slice of the market.

If you’re an estate agent, let us know your top tips for starting out in the comments below.

Useful guides for small businesses

• How to budget: a budget calculator and guide for the self-employed
• How to start a business
• Small business ideas – best businesses to start yourself
• What business insurance do I need?