The real estate market, full of great opportunities, still remains an extremely competitive field in which agents have to be on their toes at all times. They would require a financial advantage on a new listing as well as cash flow during periods when it is slow.
While loans have some pretty obvious uses, like when they are used to buy property, there are actually tons of creative ways that funding can be icing on the cake for estate agents. Let’s dive into the most common and not-so-obvious ways loans may hold the answer to a whole new world for real estate.
One of the most common and straightforward ways to utilise loans for real estate is by investing in buying properties. Estate agents sometimes have to source liquid funds quickly to snap up investment properties they can later sell or lease to third parties for more than they paid.
Access to funding enables agents to quickly seize that prime piece of property before it’s taken by another agent. However, in many cases, obtaining a loan is essential, especially for estate agents who would like to expand their portfolio and make the most of prime areas in the UK housing market.
The market value of a property increases with renovations, although it requires substantial initial costs. Loans allow estate agents to gain the much-needed capital for repairs and improvements, from cosmetic renovations to full refurbishment.
From making the space appealing or upgrading commercial properties to meeting new building regulations, securing funding for renovations is a common strategy used by estate agents to boost the sale or rental price of a property.
In a competitive marketplace like real estate, standing out is what matters the most. Estate agents have to market properties in a way that will attract buyers and sellers. The money from a loan can be used to finance a comprehensive campaign on digital media, print media, and social advertising.
Whether this is by launching Google Ads campaigns or promoting new listings on social media, having that extra cash flow dedicated to marketing can be very beneficial in getting the word out and driving more traffic to the agent’s properties.
Many estate agents depend on a professional yet inviting environment to maintain the integrity of the brand. This can be achieved through loans that may be used to buy or rent a high-quality office and expand or establish a physical presence.
This increases their visibility and credibility with clients. With a brick-and-mortar office in the proper location, local estate agents can attract walk-in clients or build a strong, trusted brand.
Real estate is constantly changing, and agents who will invest in the right technology will have an easier time serving their clients. Loans can be used to buy CRM systems, virtual tour software, and other tools that help to streamline operations and improve customer experience.
For example, a modern CRM system will let the agent continue to maintain and track his or her client base, monitor deals and even enable ease of communication. Virtual tours, as well as 3D imaging software, are essential today in the market and will allow the agent to show property remotely and draw more interest online.
While the traditional applications of loans are obvious, there are many other not-so-apparent yet equally impactful ways that estate agents can use financing to boost business. There are some less common strategies that might position them competitively and also enable the agents to reap new opportunities for growth.
One creative application of loans is to stage properties professionally. Staging is equipping and decorating a house in such a manner as to make it presentable at its best to attract potential clients. This sounds like an additional expenditure, but homes sell faster at better prices than empty or insufficiently presented properties. In a competitive market, securing a loan that can stretch to the cost of staging can make listings more attractive for estate agents.
The real estate market is constantly in a state of evolution. New trends, regulations, and best practices are all emerging regularly. A proactive approach by an estate agent to education and professional development will result in staying one step ahead of the game and adding greater value to the client.
Loans can be obtained by agents to finance further learning in real estate, certifications, or training in more niche areas such as property law, investment strategies, or sustainable building. That additional knowledge allows them to differentiate themselves from their peers and build a reputation.
The secret to success in real estate is a strong network. Loans might make it easy for one to attend or even host high-profile networking events like a local property fair, a seminar for industry leaders, or a luxury property showcase that would connect you with your potential clients, investors, and other professionals in the sector.
An event, for example, can make an estate agent a thought leader in his community, thereby improving brand awareness and potential new business opportunities.
With growing awareness of environmental sustainability, UK property buyers now seek homes and commercial buildings that are environmentally friendly. With loans, estate agents can finance green upgrades of their properties with solar panels, energy-efficient appliances, or green building materials.
These become nice attractions for conscience buyers and add long-term value to the properties. In the near future, green buildings will attract much attention. It will thus give agents the impetus in a tight market if they are prepared.
Real estate is closely knitted to local communities, and sponsoring community development projects is one way an agent can make goodwill and increase his brand popularity. The funds from loans can be applied to sponsoring charity events or any other programs that may directly contribute to uplifting the area.
For example, sponsoring the local sports team, participating in a street beautification project in the neighbourhood, or organising a charity auction will create positive associations for the Estate Agent’s Brand. It increases the reputation of the agent, as well as establishing long-term mutual relationships with clients and local stakeholders.
British estate agents face challenges, from dips and rises in market change to the maintenance of constant cash flow. However, with sufficient financing, they can put these challenges behind them and open themselves up to new venues of growth.
At Nucleus, we have better know-how of the complexities of the real estate industry and are committed to helping businesses thrive. Our financing options – Nucleus Business Loans (NBL) to Revenue-based Loans (RBL), are specifically designed to support SMEs across all industries in their growth journey. Flexible terms, low interest rates, and assured fast and transparent lending will enable you to take your real estate business to the next step.
If you’re interested in learning how financing can work for your real estate agency, send us a message. Contact us today to discuss more.