How a Real Estate Company Works


Real estate companies are businesses that sell, rent, and manage real estate. They

can be organized as corporations, limited liability companies, or partnerships.

Real estate developers earn profits by developing land into new buildings and

improvements. They also gain value by making property attractive to buyers.

Selling real estate often requires networking with clients and leveraging their social

media networks. Having robust CRM tools can make these tasks more manageable.



There are over 106,500 real estate brokerages in the United States. Most are

independent, but some are franchise brokerages. In exchange for the use of a well known

brand name and access to franchise agent resources, brokers must agree to

abide by the company’s rules and regulations.


Brokers earn money by earning a commission on each real estate transaction that

they oversee. The amount of the commission is typically split between the broker

and the agent who worked on the deal.

Brokers who work with buyers often spend their time building a network of contacts

through a process known as the “sphere of influence.” They meet people they know

and give them their business cards, while maintaining a database of those who

might be interested in buying or selling property.


Property Management

A real estate property manager handles day-to-day operations for a fee. Property

managers may charge a flat rate or a percentage of rent. They must be familiar with

market trends to advise clients and provide valuable insights. They may also charge

a leasing fee to cover the costs of marketing and screening potential tenants.

Property managers care for multifamily properties with yearly rental leases,

townhomes and condos. They also manage commercial properties and industrial

facilities. Also read


Many investors do not relish the landlord role and prefer to hire a company to

handle it for them. This is especially true if they live far from their investments or

have another full-time job. This can be a financial and time-saving decision for them.

The companies they hire can also improve customer service by getting greater

insight into the tenants’ perspectives.



Real estate agents typically work with a variety of buyers looking for homes to buy.

They are excellent negotiators and have a wide and updated database that allows

them to assess the market. They can also make recommendations on home

inspectors, attorneys, painters, handymen and landscapers.


Finding clients is central to an agent’s job, and they may attend real estate seminars

or events to meet prospective customers. They also use social media and email to

stay in touch with their growing network of contacts.

Buyers often sign a contract referred to as a buyer agency agreement that outlines

the nature of their working relationship. This document is usually transparent about

how much and for how long the buyer’s agent will be compensated. Buyers also

choose whether to grant the agent exclusivity.



Whether they’re buying, selling or leasing property, real estate companies work to

serve the needs of their customers. This often requires conducting market research

and analysis to understand their target markets’ demographics, geographic

locations and needs.


While a real estate company may represent both buyers and sellers, this is generally

frowned upon (and even illegal in some cases) because it can create a conflict of

interest. Instead, it is more common for the company to assign one agent to each



No matter which role in a real estate company you play, it’s essential to have a

robust CRM to manage all of your data. A CRM that allows you to integrate Internet

Data Exchange listings (IDX) and usher online leads into your database is a must have

for success in this industry.

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