How to Start a Real Estate Business From Home

One way to trim operating expenses is to run a home-based business. With more and more real estate customers searching for property online, it may not be as critical for a real estate business to operate from an outside office. A disciplined agent may be able to operate a successful real estate business from a home office.

Difficulty:

Moderate

Instructions

1. Contact your state real estate licensing board. Before operating a real estate business from your home, you will need to discover if it's allowed in your state. Some real estate codes require a "store front" as opposed to a home-based business.

2. Contact your local municipality to obtain a business license, and discover if you can legally operate a real estate business from your home.

3. Obtain your broker's license. A real estate business must operate under a licensed broker. Your state's real estate licensing agency will have information on the licensing requirements for a broker.

4. Register the name of your real estate business with your state's real estate licensing board. Your first choice may not be an option, so have several alternatives.

5. Contact your insurance company to get liability insurance on your business, and E&O (Errors and Omission) insurance on your real estate transactions.

6. Prepare an office area in your home, with a desk, file cabinets, computer, fax machine and copy machine.

7. Install phone service, an Internet connection and a fax line in your home office.

8. Arrange a storage area for your real estate signs.

9. Order your real estate signs, business stationery, business cards and lockboxes.

10. Arrange an area to meet with clients. This might be in your home or in a courtesy office prearranged at the title and escrow company you typically use.

11. Set up a virtual office and real estate website. Instead of finding the real estate business on Main Street, clients can find you via your real estate website.