In this article, I will share how to become a real estate agent in Nigeria as a beginner. Plus, I will also share what agents exactly do, how much they earn, how to get a license, some special tips to sell a property faster, and what qualifications are required to become a successful real estate agent in Nigeria. So let’s start with how this business works.
Who is a Real Estate Agent Exactly?
A real estate agent is a licensed person by the state government to help home buyers buy, sell, and rent homes according to their budget. He is the bridge between buyers and sellers.
His primary work is to convince the buyer and the seller to sell the property at a price that both parties can become happy with. The agent earns his commission of 1% – 5% of the total property value. These agents are also called real estate associates and salespersons.
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Requirements to Become a Real Estate Agent in Nigeria
Check the following requirements if anything is missing from your documents before you apply.
- Be at least 18 years old
- Be a resident of Nigeria
- Completed a licensing course approved by the government.
- Appear on the exam
- Pass it with 60 marks
- Clear your criminal records
- Pay the fees of about ₦5000
- Receive your real estate license in a few months
- Maintain your real estate license
Be ready for all these before you apply.
How To Receive A Real Estate License In Nigeria
Visit your state’s real estate regulatory website and apply for a real estate license with a small fee of ₦5000 (price may change over time). You have to give an exam in your state. But in some states, the exam may not be required. Fill out the form and get your real estate license. Check that.
Find everything you need if your states demand an exam. The pass mark is over 60. You will find a PDF on the govt website. It will explain the whole process and the syllabus of the exam. Study for and pass it.
After 3 to 6 months, you will receive the license to deal in properties. Remember, a real estate license is a must for agents. Otherwise, the government will sue you.
How does a Real estate Agent get paid?
A real estate agent is get paid on a commission basis that can vary from 1% to 5%. The higher the price of that property, the higher your commission will be.
Here are the average earnings for agents.
- On a commission basis, a home sells for ₦10,00,000 with a 3% commission. You will earn about ₦30,000 as a commission.
- You can also get a job and get paid a salary. For that, you need to work for a brokerage firm.
But is not a real estate broker as same as an agent? No, there are not, here is why.
Agent vs Realtor vs Broker
These are the differences between an agent, a realtor, and a broker.
- An agent has a license from the state government. They mostly work for a brokerage firm or are self-employed.
- A real estate broker is also an agent, but he has completed some additional training and other requirements. He can work independently and hire other agents to work for him.
- A Realtor has a membership of the National Association of Realtors In Nigeria. He must comply with NAR’s Ethics to stay a Realtor for life.
If you want to become a Realtor, you must become a member of that organization in Nigeria. You will get more benefits than an average agent.
How to Become a Real Estate Agent in Nigeria
Now I will give ten tips to help you start your real estate journey. I will share what you have to do to make your business a success, step by step. Follow these and then take action and become a successful real estate agent in Nigeria.
1. Choose a Real Estate Brokerage Niche
First, find a great niche that might suit you. Choose your uniqueness what are you going to sell? Here are the top categories that you can choose from.
- Apartments or flats
- Single-family or Multi-family homes
- Commercial shops
- Small and big Offices
- Agricultural and non-agricultural land
- Big Warehouses
- Small storage rooms
- Mobile homes, if available
- Other industrial properties
Choose a business niche right now. Otherwise, people will get confused, and they might not call you. People like experts, not amateurs. Be an expert, not like all in one.
2. Do a Market Research
Don’t start a real estate business before analyzing the market where you want to start a business. Find an opportunity or a gap that needs to be filled.
- In this business, The best service does not always win, but uniqueness does.
Do some due diligence on your competitor. Those who are already in the business in that area, and can block your path. Find what they are missing and how you can beat them.
3. Look for a Path of Growth
Answer the question now.
- How many new jobs are there?
- Are there any new startups?
- How good is the transport facility?
- What is the class of people who live there?
- How is your competition getting sales and making money?
All these will help you identify the demand in the market that you are going to supply. Never jump into any market, it will punish you.
4. Create A Business Plan
Let’s assume you have made your research and learned that your business might become profitable. Now create a business plan. Find answers to these questions.
- How are you going to generate leads?
- What is the best way to manage your property business?
- How to manage your cash flow?
- Employee and Customer management?
- How will you handle buyer and seller listings?
- How to build a network and
- How to get your commission quickly?
Make a plan for all these and act accordingly. Build a good business plan and then start collecting the money to start the business.
5. Arrange the Money to Start Up
Tell me do you have all the money to become a real estate agent in Nigeria or start a business there? If not, then these tips will help.
- Arrange all the money from your close relatives and start the business.
- Contact a known lender or a partner who can start the business with you.
- Take a small business loan.
Working with a partner is the best solution for a beginner because you know nothing and can’t handle all the staff. That is why work with a partner.
6. Select a Good Location for the Office
The main formula here is that your office must be visible where people can see it from far away or at least it’s easy to navigate. Don’t make your customers wonder. Use sign boards and advertisements and direct them into your office.
My friend, if your clients feel frustrated, they prefer not to go there. That is why you must choose a good location for your office most probably near the main road.
I am not thinking about renting here. I am telling you, what is the best you can get? Managing those rents is your work if you want to become a successful real estate agent in Nigeria.
7. Market Your Real Estate Business
Don’t pray for referrals as a beginner. Advertise your real estate business online and offline. Use banners on the street, a handbill, and a local seminar where home buyers may come. If someone is ready to buy a house, they must know you. Advertise with a plan, and generate leads.
8. The Five Tips to Sell A Property Faster
Use these tips to sell a property faster by using some psychological tricks.
- First, greet them when a new customer came to you. Welcome. How may I help you? Do it so they will feel respected. It will have a psychological effect on the decision.
- Determine what they really want. Ask them directly what kind of homes they are looking for. Ask informative questions. So that you will get a clear idea of what property they will like the most.
- Then select a few homes to present. Do not let them find it. You recommend it to them. It will create a better effect.
- Now make a proposal. It is time for negotiation. Do it well so that you can close the deal there.
- Finally, close it by making a visit. If things go out as expected, they will say yes, and you can prepare the contract and have them sign it.
It is the exact process agents use to sell a house fast. But in every step, maintain your authority. People don’t like homes but like the person who recommends them.
9. Special Tips for Your Success
So how to become a real estate agent in Nigeria? Use these special tips.
- Build a strong mindset.
- Be ready to work seven days a week with no excesses.
- Be ready to visit the client at night.
- Commit to your business 100%.
- Think like, I have to get it done, no other options.
10. Commit to Yourself
Commit to yourself that I will make it work, no matter what. That is the best tip for an agent. You will fail and face many rejections. You must get out and try again. Fail more, but never quit, because my friend, You will win one day. That’s my guarantee.
So, I have explained how to become a real estate agent in Nigeria with all the data and license requirements you need to start your business today. If you follow them with passion, success is waiting for you. Best of luck. Thanks for reading. Subscribe to the notification for more articles.