Real estate expansion is one of the few ways to boost a real estate business’ profits exponentially and ensure its long-term success. Without certain key components, however, plans for real estate expansion are doomed to fail. If you plan on expanding your business to new markets, follow the advice of industry experts and ensure it has what it takes to succeed first.
With 40 years in real estate and 30 years running the company trusted with ranking the success of agents and teams, REAL Trends, Steve Murray is more than qualified to offer advice on real estate expansion. During his recent appearance on Real Estate Rockstars, Steve discussed the key components of expanding a business in this industry. We explore each of these components in the following sections. To learn more about real estate expansion and hear how Steve ranks top agents and teams, listen to the podcast below.
Real Estate Expansion Key Component #1: Great Leaders
As you might imagine, great leadership is one thing that directly impacts a real estate business’ ability to achieve long-term success; it’s also one of the components vital to successful expansion. Without great leaders at the home office and great leaders running offices in distant markets, expansion simply won’t work.
In other words, you can’t expect to lead your new offices remotely with any real success. You need to find the best local leaders who possess the skills and experience needed to hire, develop, and manage people in new markets. These leaders must also be willing and able to implement and run your real estate system.
Real Estate Expansion Key Component #2: Great System
All real estate businesses have a system in place, but not all of these systems are consistent enough to succeed in new markets. Furthermore, not all real estate systems have been developed to the point that they can be duplicated reliably in a new environment with different staff.
If your real estate system has been thoroughly debugged and proven to work in your market, you might be able to implement it in a new market as well. Of course, you need to be able to teach your expansion teams’ leadership how to run it. After all, a new team can’t be expected to duplicate your team’s success if they don’t know how.
Real Estate Expansion Key Component #3: Great Culture
With great leaders running a great system, a new real estate team can be expected to succeed. If this team is also backed by great company culture, their success is virtually guaranteed. Instill the values and behaviors that make your business great in each new team you create. Not only will this enhance new team members’ performance, it will strengthen their commitment to your organization.
Ensure your real estate business possesses each of the aforementioned key components before implementing plans to expand. If it doesn’t, real estate expansion is unlikely to work and is just too risky to pursue.
If you want to learn more about the industry’s undisputed leader in ranking agents and teams or want additional information on the components of successful real estate expansion, be sure to listen to the complete podcast interview with Steve Murray.
Pat Hiban is the author of NYT best selling book “6 steps to 7 figures – A Real Estate Professional’s Guide to Building Wealth and Creating Your Destiny”, founder of Rebus University and the host of Pat Hiban Interviews Real Estate Rockstars an Agent to Agent Real Estate Radio Podcast with Hiban Digital in Baltimore, Maryland. Follow him on Facebook or Twitter.
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