Is anyone running a one man/woman office? I'm considering that possibility as soon as I'm eligible for my broker's license. I'm already generating my own business, so I wanted to get ideas on how it's working for others.

It definitely can be done successfully, and since you are already generating business, you have no down side. The challenge you'll encounter is name recognition, and competition from the big established RE offices. Many potential sellers and buyers assume that bigger is always better. Your challenge is convincing them that you can provide just as much or more service than the big guys.

I would have to agree with Ericka...I had the same problem but once people get to know you it won't matter...

I enjoy working on my own. Sometimes it gets a little busy but for the most part I haven't found any down sides to it....

Dawn Snead,
Broker
Hera Realty

I'd also like to know, do you operate out of a separate space in your home, or do you rent a small office?

I've always started home-based. If you decide to start home-based, it is very good to have the use a conference room...somewhere...for meeting clients and others. Renting a small office will appear more professional from the start, but you'll have considerably higher startup costs. If you have plenty of startup capital and need a place of business free from the distractions of home, an office is the way to go. Either way, I usually recommend starting with the lowest costs possible, and expand when necessary or desirable. This way you can stay afloat until you become recognized and your company name and goodwill become more important. Probably the biggest mistake many entrepreneurs make is failure to control expenses in the startup phase.

One way to offset the office rent is to sublease/co-rent space with another professional who is not in conflict with your business. e.g. insurance agent, travel agent, stock broker, accountant and especially the tax preparer who usually has extra space after April 15th.

I've been on my own as a 1 person operation for nearly a year after over 10 years working under other brokers that have formal offices. I work out of dedicated space in my home (I did some of the time before too) which is a significant cost advantage. Operating primarily as a listing agent on foreclosures I really don't need to meet face to face with most of my clients as they are scattered all across the country even though the properties I deal with are all in New York State. I do occasionally meet with buyers for showing property (at the property) or to execute a purchase offer. To execute the offer I often prepare the documents ahead then meet with them in their present home "as a service for them".

The biggest problem I have is lack of coverage when I am away.

I just did a podcast on this very topic. Much of what I say in that podcast has been part of my discussions with my clients when the subject comes up.

Feel free to check it out, maybe it can help.

Here is a link to it in itunes(Only use this one if you have iTunes installed on the computer your using):
http://phobos.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=213145931

And one just at my site:
http://www.soldbyrobert.com/content/view/89/45/

R

I have a home office and I love it! I have only had a couple of issues that came up along the way that I had to handle....

Being that I can't stay in my office all of the time to answer phones and emails I have Vonage which is forwarded to my cell, I have a TREO smart phone so I can sync my email and I never miss anything there, and I have efax so I can see my faxes through my email.

I also print everything that I need before showing homes but I also keep extra copies of contracts, white out and basic office supplies in my briefcase since more often that not, they change their minds on different aspects of contracts.

Also, one of the biggest problems I have found is that clients see a home for sale along the way to a showing and want information on it. Without office support I couldn't get the information to them right away. While I did immediately go back to my office and get the information I found that some had called the listing agent directly. I lost several sales because of this.

This is one of the biggest reasons I bought a smart phone. I have internet access and I can find what I need right there and I don't lose a possible sale. Having access like this also has helped build confidence in me as an agent.

The secret is to look at all of the little problems that come up along the way and find the most economical and quickest way to solve the problem. What works for me may not work for you so you have to find a solution that you are comfortable with.

Most buyers could care less what or where your office is or located. They just want you to rush on over to show them a house they have seen and not bother coming to your place of business. Hopefully, you will remember to ask them if they currently have a job.
Sellers are different. They want something more traditional than your spare bedroom. Before I get attacked by officeless agents, I know where you operate does not make you better or worse of an agent.

I would have to agree with you on the sellers...I deal with reo properties and I don't take listings other than those....I am a buyer's agent so this really doesn't affect me like it would other people.

If you're going to work with sellers this may be an issue...

Echoing Mr Foreclosure in business model...I do agree with real agent too.

For me, though I find among my highest expenses is for the communications as a one horse shop. With my assistant and I wired and wireless both, conected online anywhere 24/7, it helps to offset the cost by saving money as HO, especially with many of the REO referral fees around. It works for me but won't necessarily work for you depending on your clients.

I am a one man office, but for the very first time I will be sponsoring two salespeople in May. In 2007, of course most everyone works virtually. However, in Illinois my state puts certain requirements. 1) We must have a sign visable to the public and 2) the office must be such that clients are welcome there. Im glad I dont really meet many clients in the "office". I am storing a massive church organ in the office, which can be quite a distracting conversation piece. I also have a little address quirk to get around. My mailing address and mailbox is on the opposite side of the street from where my desk and offices really are. But its all on the same combined farm property. But the sign baffles people because the wonder why I have an even number sign on the odd side of the street.

If your property is zoned residential, its not usually a problem but the "sign" had to be placed at least 80 feet from the next residence. I went down to the courthouse to triple check before I made a move.

I like the idea of sharing with a non-competive business and I am actively seeking an office thats not 30 miles from my real farm area. What do you all think about a country lawyer who visits his office twice a month from Chicago? Im thinking about making a deal with him and giving him hi-speed wireless and a secure computer to use anytime he is in town. Free queer-eye decorating tips too. The place is kind of a dump at the moment.

Are you qualified to offer queer-eye decorating tips?

And while you are busy decorating, remember the American with Disabilities Act. Your office must be wheel chair accessible. All you need is one complaint against you. We have learned fast here in California when there was a group of about 3 to 4 persons and their attornies targeting businesses (especially restaurants) which were not compliant, even to the point where the mirror in the rest room was not low enough for the wheel chair bound, and you guessed it, lawsuit.

If you are just starting up and looking to become a part of a large company who is growing rapidly I happen to know of a great company, World Properties International, which was listed in Entreprenuers' April issue as a top franchise for 2007. If working solely on your own then their home office model would seem to fit perfect. World Properties offers real estate, mortgage, home warranty, insurance, and title and closing services. If you want to know more about this I can discuss it with you in detail, let me know.

I am finding myself more and more drawn to the idea of having a "one person" office. I will be getting back home from my sabbatical in July. I figured that in order to just get up to speed with building a client base, I would want to perhaps work under another broker for the first quarter or two.

Then the plan was to open my own office and start recruiting.

However, I am finding that even being 8000 miles away, I am getting plenty of buyers through my website.

I have two clients I have referred to other agents for a referral fee (one is going to make an offer on a place today as a matter of fact) and the other is still shopping around.

I also have 3 more buyers who all want to wait till after the summer months to buy - and I will be back in time to handle those folks myself.

With all that going on, without having done ANY other prospecting, I am pretty confident I could do well just working for myself.

R

You are never the safe pick. If they pick a big name like Remax or Century 21 and things don't work out, it is a bad market, but if they pick bob the broker, they will tend to blame the broker instead of the market. I have been on both sides of this argument over the years. It is easier with the big name, but still very possible without it.

We started with a one man show (the dear hubby) when he became a broker. If you're getting ready to set up shop, here's the latest tip from the bean_counter...

http://www.anrdoezrs.net/click-1-10423450

This is the program we use for our fax line. Since we both use our cell phones for business, it made sense to save the $60/month for the 2 Vonage lines, especially with the connection issues we started having. We are extremely pleased with myfax which is inexpensive, allows us to check our faxes anywhere there's internet, otherwise they arrive and are sent thru email and our fax line is a toll free number! Their plans start (at this writing) at $10/mth for 100 incoming pages and 200 outgoing. We've got the $20/mth plan which saves us $40/mth over using the Vonage lines. ...and did I mention saving paper by choosing the pages we want to print?

Susan

Wow, Robert, that is the best website I've run across. No wonder you don't have to prospect. Very nice.

That is very kind of you to say.. thanks!

I am still fine tuning it tho. For one thing, the free "FSBO" listing service refuses to get off the ground. I may can that... we will see.
R