How does a real estate agency work?

Before getting into the real estate business, it seems wise to define what a real estate agency is, before focusing on how an estate agency works. The role of a real estate agency is to put buyers and sellers in touch with each other in the real estate sector. The real estate agent therefore acts as an intermediary between people who wish to buy or rent a property and those who sell or rent it. Beyond this simple connection, real estate agents must bring their expertise. They are therefore called upon to follow the legal developments in the sector, to draw up the deeds of sale or to manage all the administrative tasks linked to the transactions. A real estate agency works with a branch manager and a team of real estate negotiators or commercial agents, who are sometimes supported by a sales assistant and receptionist.

The organisation chart of a real estate agency

A real estate agency is run by a manager. In the case of a franchise, it is the franchisee who manages the unit. He is assisted by a team of real estate negotiators or commercial agents. Finally, a person is often in charge of the commercial assistance in order to welcome the customer. In addition to greeting clients, this person also assists the negotiators with administrative tasks. The organisation chart of a real estate agency varies according to the size of the agency and the sector covered. It can have from one to more than ten real estate negotiators.

The role of the different members of a real estate agency

The real estate agent, manager of the agency, must ensure the commercial management and management of his agency. His missions are multiple. Like his teams, he must search for properties to put on the market, evaluate the price of the properties, sell them and rent them out. Above all, however, he or she is responsible for managing and supervising the sales team. The director of a real estate agency must have commercial, technical, legal and financial skills.

The real estate negotiator acts as an intermediary between people who wish to sell a property and those who wish to buy a home. He or she is present at all stages of the transaction, from the search for the property to the drafting of the preliminary sales agreement. 80% of the real estate negotiators’ time is devoted to prospecting, i.e. looking for property for sale or rent. To do this, they work in the field or from their office by freelancing. Once the properties have been found, the negotiators have to evaluate the price of the goods and negotiate with the owners the selling price of the property as close as possible to the estimate they have made. If they reach an agreement, they then take out a sale mandate, which allows them to act on behalf of their client. Once the mandate is signed, the negotiators must promote the property and find a buyer before finalizing the sale. Negotiators may be employees of the agency in which they work. They have a fixed remuneration or a remuneration composed of a fixed and a variable. The real estate negotiator may also have the status of a commercial agent. In this case, he or she receives a commission on sales.

Within the real estate agency, the assistant carries out several tasks. The first is to ensure the physical reception and telephone permanence. The assistant also ensures administrative follow-up of the files. He/she ensures the updating of the databases, the follow-up of the dashboards, the management of the advertisements, the follow-up of the sales files with the notaries, the treatment and the follow-up of the various mails. Sometimes, the assistant may also be in charge of a rental portfolio. His/her missions are therefore very versatile and require teamwork skills.

Services provided by estate agencies

Real estate agencies provide transaction and rental services. In order to obtain a recurrent turnover, many of them also provide rental management and co-ownership management services.

The specificities of franchising

When managing a real estate agency under franchise, the concept put in place by the franchisor as well as the methods learned during the initial training period should be respected. Furthermore, throughout the year, the franchisor, via network facilitators, is responsible for assisting the franchisee in the development of his unit. The latter is therefore regularly visited and must also participate in regional or national meetings.

The role of the notary in the transaction

In order to be registered and valid, any real estate sale must be passed before a notary, a public officer acting on behalf of the State. The notary carries out the necessary formalities for the authentication of the deed of purchase. It is from the notary that one obtains title to the property. The notary’s role is also to carry out legal and tax checks to prevent any possible disputes with the buyer.