The hospitality and real estate industries are among the most lucrative businesses globally, according to Yahoo Finance. According to a recent study, the real estate market is expected to experience an annual growth rate of 3.52%, resulting in a market volume of US$729.40tn by 2028. The real estate market’s apparent resistance to recession makes it highly sought-after.
Unlike global markets, where you need a license to operate, the Nigerian market is dynamic because it is regulated. Practitioners do not necessarily need a license to get started. While this comes off as an advantage to intending realtors, it poses a challenge — a low barrier to entry. Unsurprisingly, many individuals want to become real estate agents for the aforementioned reasons. However, you don’t want to be hasty and hop on the trend without knowing the preliminary steps.
In this post, you’ll be exposed to all the information you need on how to become a real estate agent in Nigeria, whether you lack prior experience or are a newbie in the industry. Following these recommended and widely attested guidelines would set you up for success in the real estate industry.
Is Real Estate Profitable in Nigeria?
Real estate is profitable in Nigeria. In the last quarter of 2022, the real estate industry contributed roughly $3.9 billion to Nigeria’s GDP. According to Bismarck Rewane, the CEO of the Financial Derivative Company, the real estate sector will grow by 5.2% this year. The sector is expected to expand by 50% in commercial and residential property sales in Lagos as purchasing power, demand for properties, and wealth levels increase among Nigerians.
Real Estate Agent Salary Guide in Nigeria
Commercial real estate agents earn a higher salary in Nigeria than residential real estate agents because managing a commercial space can become profitable over time. By and large, entry-level real estate agents could earn up to N1,800,000 annually, while experienced real estate agents in Lagos earn up to N15,000,000 annually. These figures work for self-employed realtors.
Now let’s calculate it…
The average cost of a flat in Lagos = N1,500,000
Agents commission = 10%
Agents earning in an average transaction = N150,000
Agents annual earnings with just one transaction in a month is = N150,000 x 12
Basic annual earnings = N1,800,000
The formula above chronicles the earnings of agents involved in rent transactions. Agents make different percentages depending on the kind of deal and the company involved in the property development. Agents working in companies usually earn a basic salary with a commission.
How do Real Estate Agents in Nigeria Make Money?
In Nigeria, real estate agents make money from:
- Buying and selling lands
- Buying and selling houses
- Leasing houses or lands
- Land development
- Land appreciation
- Placing apartments or houses on rent
- Investing in a real estate company(s)
- Becoming a real estate developer
- Starting a real estate company
- Becoming a building caretaker
How do I Become a Real Estate Agent in Nigeria?
Studying estate management is recommended if your previous degree does not correlate with real estate. Likewise, people with a degree in estate management should continue taking professional courses to upskill themselves. The real estate industry is dynamic, so it is crucial that you’re updated in order not to deploy dysfunctional strategies on new trends. New starters can enroll in programs that teach the basics of real estate and the skills needed to succeed.
The courses you take to help you become a better communicator as the bulk of your operations would be communication-based. One of the primary communication strategies you must learn about is pitching to potential buyers, sellers, and real estate brokers. Ensure that you’re also familiar with the laws binding the sales of properties in the state you are operating in; hence, the importance of research.
Register your business
In Nigeria, you don’t need a license to sell properties. Agents can legally work for buyers and sellers in real estate without a license. However, joining associations like BRG, REMS, and ABN proves you’re an industry practitioner. They also train people to become realtors. You should know that you do not need previous experience in real estate to practice it. On the other hand, if you want to set up a real estate agency, you need previous experience (recommended) and a CAC (Corporate Affairs Commission) certification before monetizing your business.
Network with your target audience
It is essential to grow your client base by forming meaningful connections with other experts in the real estate business. You’re operating in a people-centered business. Therefore, you should get comfortable conversing with people, attending events, conferences, and seminars, and interacting with leads on social media. Having a large circle of connections is typical. If you’re just starting your real estate career, this is one strategy you don’t want to sleep on.
More so, don’t be slow to leverage real estate marketing strategies, creating helpful and promotional content on digital media platforms. It is a good way for people to know more about your business and support you.
Invest in personal branding
If you want to be an employed realtor, You’ll need a portfolio that showcases your experience and proves that you’re a fit for the job. For newcomers in the industry, you may want to consider building experience by volunteering on projects or positioning your experience in marketing or communication-related roles as a value add to the real estate role.
The importance of taking professional courses cannot be emphasized enough, as it adds to your competitive advantage. To build an attractive resume as a real estate agent, focus on highlighting key accomplishments and skills in a concise manner.
When writing your resume, begin with a strong summary statement that showcases your expertise and enthusiasm for the industry. Use bullet points to emphasize achievements such as successful sales records, client testimonials, and market knowledge. Include relevant certifications, licenses, and any specialized training. Highlight exceptional communication, negotiation, and networking skills.
You should also prioritize your outward appearance. How you express yourself is as important as how you look; always look the part! Don’t wear an N2,000 outfit when you want to sell a property worth millions of naira. Your client would not only suspect you, but you might also lose the deal (you don’t want that to happen!).
Grow and leverage your online presence
It would be a significant blunder to get training on real estate management and not know how to grow your business online because a considerable percentage of your target audience is in various online clusters.
Ensure you have a professional website that provides information on property listings and other helpful content. Secondly, an active engagement on social media platforms helps build a following, while content marketing showcases expertise.
Through online advertising, you can widen your reach and generate leads. Networking with peers and clients in online real estate communities expands your pool of connections. Positive online reviews can become third-party recommendations that you use to build trust and credibility for your business.
If you’re a new starter, you need to learn about different digital platforms like Wikis, Google search, social media, emails, and the type of information they seek on those platforms. For example, potential house buyers who want to acquire properties in Lagos could run a Google search to find real estate websites in Nigeria for text-based information. However, their search intent differs on Instagram; they want to see a video showcasing the house. Ensure you use appropriate keywords and hashtags to be more visible online.
If you don’t have digital marketing experience, you can take a course or work closely with a digital marketer. You need to apply a converged strategy to your business. Use digital marketing to get visibility and build a community that would lead to on-site conversions—potential buyers fixing physical appointments to check out the property.
In conclusion, embarking on a career as a real estate agent in Nigeria with no prior experience is an achievable goal because the Nigerian market is not regulated, which gives you easy access. Aspiring agents can surmount the initial challenges and carve a successful path in the dynamic Nigerian real estate market by obtaining the necessary education, joining associations, cultivating a robust professional network, leveraging online media technology, and demonstrating unwavering determination. With dedication and a commitment to continuous learning, anyone can become a realtor and flourish in the ever-evolving world of real estate. Would you like us to coach you further on everything you need to know about real estate management? Reach out to us! We’ll be happy to talk to you.