real estate business planning 2024

• REALTOR® Store

Resources and updates on NAR’s settlement agreement related to broker commissions.

• Social Media
• Sales Tips & Techniques
• MLS & Online Listings
• Starting Your Career
• Being a Broker
• Being an Agent
• Condominiums
• Smart Growth
• Vacation, Resort, & 2nd Homes
• FHA Programs
• Home Inspections
• Arbitration & Dispute Resolution
• Fair Housing

• All Membership Benefits
• NAR REALTOR Benefits® Bringing you savings and unique offers on products and services just for REALTORS®. Close
• Directories Complete listing of state and local associations, MLSs, members, and more. Close
• Dues Information & Payment
• Become a Member As a member, you are the voice for NAR – it is your association and it exists to help you succeed. Close
• Logos and Trademark Rules Only members of NAR can call themselves a REALTOR®. Learn how to properly use the logo and terms. Close
• Your Membership Account Review your membership preferences and Code of Ethics training status. Close

• Highlights & News Get the latest top line research, news, and popular reports. Close
• Housing Statistics National, regional, and metro-market level housing statistics where data is available. Close
• Research Reports Research on a wide range of topics of interest to real estate practitioners. Close
• Presentation Slides Access recent presentations from NAR economists and researchers. Close
• State & Metro Area Data Affordability, economic, and buyer & seller profile data for areas in which you live and work. Close
• Commercial Research Analysis of commercial market sectors and commercial-focused issues and trends. Close
• Statistical News Release Schedule

• Advocacy Issues & News
• Federal Advocacy From its building located steps away from the U.S. Capitol, NAR advocates for you. Close
• REALTORS® Political Action Committee (RPAC) Promoting the election of pro-REALTOR® candidates across the United States. Close
• State & Local Advocacy Resources to foster and harness the grassroots strength of the REALTOR® Party. Close
• REALTOR® Party A powerful alliance working to protect and promote homeownership and property investment. Close
• Get Involved Now more than ever, it is critical for REALTORS® across America to come together and speak with one voice. Close

• All Education & Professional Development
• All NAR & Affiliate Courses Continuing education and specialty knowledge can help boost your salary and client base. Close
• Code of Ethics Training Fulfill your COE training requirement with free courses for new and existing members. Close
• Continuing Education (CE) Meet the continuing education (CE) requirement in state(s) where you hold a license. Close
• Designations & Certifications Acknowledging experience and expertise in various real estate specialties, awarded by NAR and its affiliates. Close
• Library & Archives Offering research services and thousands of print and digital resources. Close
• Commitment to Excellence (C2EX) Empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism. Close
• NAR Academy at Columbia College Academic opportunities for certificates, associates, bachelor’s, and master’s degrees. Close

• Latest News
• NAR Newsroom Official news releases from NAR. Close
• REALTOR® Magazine Advancing best practices, bringing insight to trends, and providing timely decision-making tools. Close
• Blogs Commentary from NAR experts on technology, staging, placemaking, and real estate trends. Close
• Newsletters Stay informed on the most important real estate business news and business specialty updates. Close
• NAR NXT, The REALTOR® Experience
• REALTORS® Legislative Meetings
• AE Institute
• Leadership Week
• Sustainability Summit

• Mission, Vision, and Diversity & Inclusion
• Code of Ethics
• Leadership & Staff National, state & local leadership, staff directories, leadership opportunities, and more. Close
• Committee & Liaisons
• History Founded as the National Association of Real Estate Exchanges in 1908. Close
• Affiliated Organizations
• Strategic Plan NAR’s operating values, long-term goals, and DEI strategic plan. Close
• Governing Documents Code of Ethics, NAR's Constitution & Bylaws, and model bylaws for state & local associations. Close
• Awards & Grants Member recognition and special funding, including the REALTORS® Relief Foundation. Close
• NAR's Consumer Outreach

• Find a Member
• Browse All Directories
• Find an Office
• Find an Association
• NAR Group and Team Directory
• Committees and Directors
• Association Executive
• State & Local Volunteer Leader
• Buyer's Rep
• Senior Market
• Short Sales & Foreclosures
• Infographics
• First-Time Buyer
• Window to the Law
• Next Up: Commercial
• New AE Webinar & Video Series
• Drive With NAR
• Real Estate Today
• The Advocacy Scoop
• Center for REALTOR® Development
• Leading with Diversity
• Good Neighbor
• NAR HR Solutions
• Marketing Social Media Sales Tips & Techniques MLS & Online Listings View More
• Being a Real Estate Professional Starting Your Career Being a Broker Being an Agent View More
• Residential Real Estate Condominiums Smart Growth Vacation, Resort, & 2nd Homes FHA Programs View More Home Inspections
• Legal Arbitration & Dispute Resolution Fair Housing Copyright View More
• Commercial Real Estate
• Right Tools, Right Now
• NAR REALTOR Benefits® Bringing you savings and unique offers on products and services just for REALTORS®.
• Directories Complete listing of state and local associations, MLSs, members, and more.
• Become a Member As a member, you are the voice for NAR – it is your association and it exists to help you succeed.
• Logos and Trademark Rules Only members of NAR can call themselves a REALTOR®. Learn how to properly use the logo and terms.
• Your Membership Account Review your membership preferences and Code of Ethics training status.
• Highlights & News Get the latest top line research, news, and popular reports.
• Housing Statistics National, regional, and metro-market level housing statistics where data is available.
• Research Reports Research on a wide range of topics of interest to real estate practitioners.
• Presentation Slides Access recent presentations from NAR economists and researchers.
• State & Metro Area Data Affordability, economic, and buyer & seller profile data for areas in which you live and work.
• Commercial Research Analysis of commercial market sectors and commercial-focused issues and trends.
• Federal Advocacy From its building located steps away from the U.S. Capitol, NAR advocates for you.
• REALTORS® Political Action Committee (RPAC) Promoting the election of pro-REALTOR® candidates across the United States.
• State & Local Advocacy Resources to foster and harness the grassroots strength of the REALTOR® Party.
• REALTOR® Party A powerful alliance working to protect and promote homeownership and property investment.
• Get Involved Now more than ever, it is critical for REALTORS® across America to come together and speak with one voice.
• All NAR & Affiliate Courses Continuing education and specialty knowledge can help boost your salary and client base.
• Code of Ethics Training Fulfill your COE training requirement with free courses for new and existing members.
• Continuing Education (CE) Meet the continuing education (CE) requirement in state(s) where you hold a license.
• Designations & Certifications Acknowledging experience and expertise in various real estate specialties, awarded by NAR and its affiliates.
• Library & Archives Offering research services and thousands of print and digital resources.
• Commitment to Excellence (C2EX) Empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism.
• NAR Academy at Columbia College Academic opportunities for certificates, associates, bachelor’s, and master’s degrees.
• NAR Newsroom Official news releases from NAR.
• REALTOR® Magazine Advancing best practices, bringing insight to trends, and providing timely decision-making tools.
• Blogs Commentary from NAR experts on technology, staging, placemaking, and real estate trends.
• Newsletters Stay informed on the most important real estate business news and business specialty updates.
• Leadership & Staff National, state & local leadership, staff directories, leadership opportunities, and more.
• History Founded as the National Association of Real Estate Exchanges in 1908.
• Strategic Plan NAR’s operating values, long-term goals, and DEI strategic plan.
• Governing Documents Code of Ethics, NAR's Constitution & Bylaws, and model bylaws for state & local associations.
• Awards & Grants Member recognition and special funding, including the REALTORS® Relief Foundation.
• Top Directories Find a Member Browse All Directories Find an Office Find an Association NAR Group and Team Directory Committees and Directors
• By Role Broker Association Executive New Member Student Appraiser State & Local Volunteer Leader
• By Specialty Commercial Global Buyer's Rep Senior Market Short Sales & Foreclosures Land Green
• Multimedia Infographics Videos Quizzes
• Video Series First-Time Buyer Level Up Window to the Law Next Up: Commercial New AE Webinar & Video Series
• Podcasts Drive With NAR Real Estate Today The Advocacy Scoop Center for REALTOR® Development
• Programs Fair Housing Safety Leading with Diversity Good Neighbor NAR HR Solutions
• Writing a Business Plan

Writing a business plan may seem a daunting task as there are so many moving parts and concepts to address. Take it one step at a time and be sure to schedule regular review (quarterly, semi-annually, or annually) of your plan to be sure you on are track to meet your goals.

Why Write a Business Plan?

Making a business plan creates the foundation for your business. It provides an easy-to-understand framework and allows you to navigate the unexpected.

Quick Takeaways

• A good business plan not only creates a road map for your business, but helps you work through your goals and get them on paper
• Business plans come in many formats and contain many sections, but even the most basic should include a mission and vision statement, marketing plans, and a proposed management structure
• Business plans can help you get investors and new business partners

Source: Write Your Business Plan: United States Small Business Association

Writing a business plan is imperative to getting your business of the ground. While every plan is different – and most likely depends on the type and size of your business – there are some basic elements you don’t want to ignore.

Latest on this topic

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.

Defining Your Mis​sion & Vision

Writing a business plan begins by defining your business’s mission and vision statement. Though creating such a statement may seem like fluff, it is an important exercise. The mission and vision statement sets the foundation upon which to launch your business. It is difficult to move forward successfully without first defining your business and the ideals under which your business operates. A company description should be included as a part of the mission and vision statement. Some questions you should ask yourself include: 

• What type of real estate do you sell?
• Where is your business located?
• Who founded your business?
• What sets your business apart from your competitors?

What is a Vision Statement ( Business News Daily , Jan. 16, 2024)

How to Write a Mission Statement ( The Balance , Jan. 2, 2020)

How to Write a Mission Statement ( Janel M. Radtke , 1998)

Using a SWOT Analysis to Structure Your Business Plan

Once you’ve created a mission and vision statement, the next step is to develop a SWOT analysis. SWOT stands for “Strengths, Weaknesses, Opportunities, and Threats.” It is difficult to set goals for your business without first enumerating your business’s strengths and weaknesses, and the strengths and weaknesses of your competitors. Evaluate by using the following questions:

• Do you offer superior customer service as compared with your competitors?
• Do you specialize in a niche market? What experiences do you have that set you apart from your competitors?
• What are your competitors’ strengths?
• Where do you see the market already saturated, and where are there opportunities for expansion and growth?

Strength, Weakness, Opportunity, and Threat (SWOT) ( Investopedia , Oct. 30, 2023)

How to Conduct a SWOT Analysis for Your Small Business ( SCORE , Apr. 28, 2022)

SWOT Analysis Toolbox ( University of Washington )

Setting ​Business Goals

Next, translate your mission and vision into tangible goals. For instance, if your mission statement is to make every client feel like your most important client, think about the following:

• How specifically will you implement this?
• Do you want to grow your business?
• Is this growth measured by gross revenue, profit, personnel, or physical office space?
• How much growth do you aim for annually?
• What specific targets will you strive to hit annually in the next few years?

Setting Business Goals & Objectives: 4 Considerations ( Harvard Business School , Oct. 31, 2023)

What are Business Goals? Definition, How To Set Business Goals and Examples ( Indeed , Jul. 31, 2023)

Establishing a Format

Most businesses either follow a traditional business plan format or a lean startup plan.

Traditional Business Plan

A traditional business plan is detailed and comprehensive. Writing this business plan takes more time. A traditional business plan typically contains the following elements:

• Executive Summary
• Company description
• Market analysis
• Organization and management
• Service or product line
• Marketing and sales
• Funding request
• Financial projections

Lean Startup Plan

A lean startup plan requires high-level focus but is easier to write, with an emphasis on key elements. A lean startup plan typically contains the following elements:

• Key partnerships
• Key activities
• Key resources
• Value proposition
• Customer relationships
• Customer segments
• Cost structure
• Revenue stream

Creating a Marketing Plan

You may wish to create a marketing plan as either a section of your business plan or as an addendum. The Marketing Mix concerns product , price , place and promotion .

• What is your product?
• How does your price distinguish you from your competitors—is it industry average, upper quartile, or lower quartile?
• How does your pricing strategy benefit your clients?
• How and where will you promote your services?
• What types of promotions will you advertise?
• Will you ask clients for referrals or use coupons?
• Which channels will you use to place your marketing message?

Your Guide to Creating a Small Business Marketing Plan ( Business.com , Feb. 2, 2024)

10 Questions You Need to Answer to Create a Powerful Marketing Plan ( The Balance , Jan. 16, 2020)

Developing a Marketing Plan ( Federal Deposit Insurance Corporation )

Forming a Team

Ensuring the cooperation of all colleagues, supervisors, and supervisees involved in your plan is another important element to consider. Some questions to consider are:

• Is your business plan’s success contingent upon the cooperation of your colleagues?
• If so, what specifically do you need them to do?
• How will you evaluate their participation?
• Are they on-board with the role you have assigned them?
• How will you get “buy in” from these individuals?

How to Build a Real Estate Team + 7 Critical Mistakes to Avoid ( The Close , May 17, 2023)

Don’t Start a Real Estate Team Without Asking Yourself These 8 Questions ( Homelight , Jan. 21, 2020)

Implementing a Business Plan and Reviewing Regularly

Implementation and follow-up are frequently overlooked aspects to the business plan, yet vital to the success of the plan. Set dates (annually, semi-annually, quarterly, or monthly) to review your business plans goals. Consider the following while reviewing:

• Are you on track?
• Are the goals reasonable to achieve, impossible, or too easy?
• How do you measure success—is it by revenue, profit, or number of transactions?

And lastly, think about overall goals.

• How do you plan to implement your business plan’s goals?
• When will you review and refine your business plan goals?
• What process will you use to review your goals?
• What types of quantitative and qualitative data will you collect and use to measure your success?

These items are only a few sections of a business plan. Depending on your business, you may want to include additional sections in your plan such as a:

• Cover letter stating the reasoning behind developing a business plan
• Non-disclosure statement
• Table of contents

How To Write a Business Proposal Letter (With Examples) ( Indeed , Jul. 18, 2023)

How To Implement Your Business Plan Objectives ( The Balance , Aug. 19, 2022)

The Bottom Line

Creating a business plan may seem daunting, but by understanding your business and market fully, you can create a plan that generates success (however you choose to define it).

Real Estate Business Plans – Samples, Instructional Guides, and Templates

9 Steps to Writing a Real Estate Business Plan + Templates ( The Close , Apr. 3, 2024)

How to Write a Real Estate Business Plan (+Free Template) ( Fit Small Business , Jun. 30, 2023)

The Ultimate Guide to Creating a Real Estate Business Plan + Free Template ( Placester )

Write Your Business Plan ( U.S. Small Business Administration )

General Business Plans – Samples, Instructional Guides, and Templates

Business Plan Template for a Startup Business ( SCORE , Apr. 23, 2024)

Guide to Creating a Business Plan with Template (Business News Daily, Mar. 28, 2024)

Nine Lessons These Entrepreneurs Wish They Knew Before Writing Their First Business Plans ( Forbes , Jul. 25, 2021)

How to Write a Business Plan 101 ( Entrepreneur , Feb. 22, 2021)

Books, eBooks & Other Resources

Ebooks & other resources.

The following eBooks and digital audiobooks are available to NAR members:

The Straightforward Business Plan (eBook)

Business Plan Checklist (eBook)

The SWOT Analysis (eBook)

The Business Plan Workbook (eBook)

Start-Up! A Beginner's Guide to Planning a 21st Century Business (eBook)

Complete Book of Business Plans (eBook)

How to Write a Business Plan (eBook)

The Easy Step by Step Guide to Writing a Business Plan and Making it Work (eBook)

Business Planning: 25 Keys to a Sound Business Plan (Audiobook)

Your First Business Plan, 5 th Edition (eBook)

Anatomy of a Business Plan (eBook)

Writing a Business Plan and Making it Work (Audiobook)

The Social Network Business Plan (eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Writing an Effective Business Plan (Deloitte and Touche, 1999) HD 1375 D37w

Have an idea for a real estate topic? Send us your suggestions .

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

Real Estate Business Planning for 2024: Your Path to Success

As we step into the promising landscape of 2024, real estate professionals are gearing up to set their business goals and strategies for the year ahead. Whether you’re an experienced agent or just starting in the industry, effective business planning is key to navigating the ever-evolving real estate market. In this blog post, we’ll explore essential tips to help you create a robust business plan for a successful 2024.

1. Reflect and Analyze Your 2023 Performance

Before you set your sights on 2024, take a moment to look back at 2023. What were your biggest sources of leads? How effective was your marketing strategy? What worked well, and what needs adjustments? Reflecting on the past year’s performance can provide valuable insights into areas where you excelled and areas that may require improvement.

For newer agents, finding leads may be a primary focus. Building relationships within your existing network can be a powerful way to generate leads. Consider connecting with people you naturally engage with, such as those from your place of worship, former colleagues, fellow parents from your kids’ sports teams, or even your social media contacts.

2. Set Clear and Measurable Goals

One of the fundamental components of your business plan is goal-setting. Start by writing down your goals for 2024, making them visible in your workspace. Prioritize your personal life, ensuring that you allocate time for your family. It’s essential not to put your loved ones last on your list.

Next, create a comprehensive business plan that outlines the specific targets you aim to achieve throughout the year. Consider factors like how many contacts, listings, and sales you’ll need to meet your monthly, quarterly, and annual financial goals. Having clear, measurable objectives will provide you with a roadmap to track your progress and stay motivated.

3. Craft a Strategic Work Schedule

Your daily and weekly work schedule plays a crucial role in supporting your goals. Assign priority to activities that directly contribute to your income. These income-producing activities may include lead generation, client follow-up, contract writing, roleplaying, and skill development. Prioritize these activities in your schedule to maximize your earning potential.

4. Develop a Targeted Marketing Plan

In today’s real estate landscape, a well-thought-out marketing plan is essential. Identify the primary sources of business that work best for you. These sources could include social media marketing, geographic farming, targeting expired listings, or focusing on new-home construction. Create tailored marketing plans for each of these sources to maximize your reach and effectiveness.

5. Balance Professional and Personal Growth

Achieving success in real estate is not solely about professional growth; it’s also about maintaining a balanced personal life. Outline both professional and personal growth plans in your business strategy.

Professional growth goals may encompass activities such as reading regularly, enrolling in relevant courses, obtaining professional designations, or attending industry-related seminars and conferences. These pursuits enhance your skills and knowledge, positioning you as a more valuable asset to your clients.

On the personal front, it’s crucial to set goals that prioritize your well-being and happiness. Dedicate quality time to your loved ones, pursue hobbies or interests, and establish a savings plan to secure your financial future.

As you embark on your journey in real estate for 2024, remember that effective business planning is the foundation of your success. By reflecting on past performance, setting clear goals, crafting a strategic work schedule, developing targeted marketing plans, and balancing personal and professional growth, you can create a robust business plan that guides you towards achieving your aspirations. Here’s to a prosperous and fulfilling year ahead in the world of real estate!

Recent Posts

Understanding commission advances: how they work and why you need one, how does international real estate work, exploring the “work, play, live” concept in real estate.

• What to Expect as the Real Estate Market Heats Up for Summer 2024
• Money Management for Real Estate Professionals
• Advanced Commissions
• Current Trends
• Identity Theft
• Landscaping
• Miscellaneous
• Personal Growth
• Press Release
• Professional Development
• Real Estate

Previous Post 2024 Real Estate Forecast: What Homebuyers and Sellers Need to Know

Next post how do real estate agents get paid, recommended for you.

Your real estate business plan is your greatest predictor of success…

…because when done correctly, it serves as your guide for the entire year. Let me show you how to bring more certainty to what you can achieve.

Our industry is going through a monumental shift, leaving much uncertainty in the air. However, with a powerful real estate business plan in hand, you can navigate these turbulent waters with confidence. No matter which direction the market takes, your finely tuned real estate business plan will keep you on track and unfazed. Let it be your guiding light that illuminates the way forward, ensuring unwavering certainty in your journey.

That’s why I hosted a webinar called “ Make It or Break It: Business Planning for a Turbulent Year and Beyond ,” which is dedicated to helping you create a real estate business plan for success. 

In this blog, I’m giving you a sneak peek inside, sharing seven fundamental elements that make up a truly effective real estate business plan. Take some time to think about each of them before you listen to the webinar!

I can’t stress how important it is that you begin thinking about this stuff NOW and do it in the correct way. So with that said, let’s dive right in…

Real Estate Business Plan Fundamentals

No. 1: purpose.

Begin with your “What?” It is a fundamental principle that the universe cannot give you what you want if you don’t even know what you want.

So what do you want? But more than that, what does it look like? In ten years, what do you hope to build? “Selling some houses to make some money” is not a mission; it’s just a thing you want to do, and it won’t fuel you to achieve anything truly special.

If you haven’t already realized what your purpose is, you can discover it by listing out what you value, because your mission statement should reflect the physical manifestation of your values. And if you need help here, in the webinar I’ll show you what my top five values are in order to give you an example to work off of.

No. 2: Motivation

Now that you know what you want, WHY do you want it?  

The fact of the matter is that you will get tired and there will be times when you feel like getting complacent or not following through. In order to have a guaranteed way of refueling yourself and staying on track, you need to be very honest about what motivates you.

Fear of letting down my family, those who work for me, and the agents I serve is what honestly motivates me. These answers sound like what you’d hear from a LOT of people, but the truth is, sometimes people deceive themselves about what actually motivates them. This requires deep introspection. If money, lots of vacations, or status are what really inspire you to work at your best, you need to know that.

Once you know what or who you’re doing it for, it’s time to put an accountability plan in place, because no one can stay self-motivated all the time – that’s just not how people work. And unless your spouse is a professional business coach who can look at your numbers and hold you truly accountable, they don’t exactly count.

No 3: Units & Goals

What if I told you that you could bring increased predictability to your business , even with uncertain market conditions? That’s the power of tracking and measuring , and in next week’s webinar, I’ll help you dig into all the most important metrics to know.

It’s about getting very specific about what’s possible and breaking it down into an equation you can follow for success. When you set overly ambitious goals without reason or a guide to reaching them, then those aren’t real goals – they’re hopes and wishes.

No. 4: Marketing & Lead Gen

Identifying how you’ll attract new business and committing to your plan is one of the most crucial steps toward making the new year a successful one:

• What marketing are you currently running?
• What marketing are you planning to run?
• And most importantly, what marketing can you afford to run?

Your marketing budget and action plan are vital to a successful real estate business plan, but they must have a thoughtful strategy behind them. Look through what’s showing you the best results and what lead-generation pillars can complement or integrate with what you’re already doing.

Maybe there are areas where you spent too much money or ones where you would have benefited from investing significantly more. We need to get your budget dialed in and then align it with the action items you need to be hitting yearly, quarterly, monthly, weekly, and daily. Join me for the webinar and we’ll give you the template to figure all of this out.

No. 5: Operations  

Just because someone is running a business doesn’t mean that they always understand how it works. If you keep doing the same procedure over and over and have inconsistent results with it, there is something wrong with the procedure.

Our goal in this section is to prepare you and your team (if you have one or are planning to build one) with all the tools, resources, and SYSTEMS you need to get more done with less effort. If your SOPs aren’t already completely locked down, you want to pay extra attention to this section of your business plan. 

No. 6: Finances  

Isn’t it interesting how people who don’t budget their money always seem to struggle with it, no matter how much they make? Well, you’re not going to be that person.

Your real estate business plan should have an exact breakdown of what happens with every commission check, covering your taxes, expenses, and every other aspect of your financial plan. You’ll want to work on paying off debts, making wise investments, and having money set away in case you need it (REMEMBER THAT SHIFTING MARKET?).

No. 7: An Important Exercise  

I’m going to hold back here because we covered this exercise at length during our “Make It or Break It: Business Planning” webinar , and broke it down step by step. Get access to this important business planning webinar , and be sure to take notes because this is an exercise that should be done annually for every business plan you craft. 

How About Access to a Business Planning Webinar?

As a real estate professional, solving problems for a profit is what it’s all about. And with the inevitable challenges that the next 12 months will bring, it’s more crucial than ever to be equipped and prepared. That’s why our recent business planning webinar , “Make It or Break It: Business Planning for a Turbulent Year and Beyond,” was a massive hit. 

With access to this on-demand business plan webinar, you’ll gain immediate access to our acclaimed seven-point business plan template, essential tips on fostering the right mindset to conquer today’s volatile market, engaging Q&A sessions, and more insights from Tom Ferry. 

Don’t miss this chance to arm yourself with the knowledge and tools to thrive. Unlock your access to the full video, business plan, and more.

Related Articles

Would you like to generate and convert more leads in less time.

• Free consultation
• Leadership Coaching
• One2One Coaching
• Group Coaching
• Success Stories
• The Curious CEO
• Our System Explained
• Referral Maker PRO
• Referral Maker CRM
• REALStrengths
• Buffini Referral Network
• Buffini Groups
• Do It N.O.W.
• Become a Certified Full-Service Professional
• 100 Days to Greatness
• The Pathway to Mastery—Essentials
• The Pathway to Mastery—Advanced
• Peak Producers
• Ultimate Recruiting Solution
• Buffini Certification – Start Here!
• Master Class
• The Peak Experience
• MasterMind Summit
• Leadership Conference
• Virtual Events
• Meet Our Speakers
• Free Resources
• Buffini Bonus Content
• Free Tips and Training
• It's a Good Life podcast
• Free Business Consultation
• 25th Year Anniversary
• Press Releases
• Submit a Referral
• Brian Buffini
• The Emigrant Edge
• Take a Course About Buffini & Company Training Buffini & Company real estate training programs maximize agent productivity and profitability for all skill levels, while taking you to the next level of your career. Available Courses 100 Days to Greatness In just 100 days, this real estate training course will guide you through proven systems to launch or jumpstart your real estate career. NAR Member Special --> The Pathway to Mastery - Essentials In just eight weeks, master the fundamentals of Working by Referral, lead generation, working with buyers and sellers, negotiation and building a world-class business plan. The Pathway to Mastery - Advanced This next-level training course contains eight modules taking a deep dive into objection handling, pricing presentations and the entire buying and selling process start to finish. Peak Producers Learn to generate leads every day, professionally serve all clients and produce at a consistently high level when Working by Referral in this 12-week course. --> Ultimate Recruiting Solutions Watch eight videos facilitated by Buffini & Company trainers providing insights, strategies and best practices that will transform you into the Ultimate Recruiter.
• Lead a Course About Buffini & Company Training Get Buffini Certified to facilitate real estate training courses for agents on every step of the real estate career path, from licensee to seasoned pro. Available Courses 100 Days to Greatness In 100 days, help your agents establish systems to launch their real estate career that include lead generation, closing deals and leveraging time, energy and money. NAR Member Special --> The Pathway to Mastery - Essentials Increase your agents’ bottom lines by facilitating this eight-week program diving deep into lead generation, working with buyers and sellers, negotiation and business planning. The Pathway to Mastery - Advanced Strengthen agents’ Work by Referral foundations with this eight-module, next-level training course focused on creating a more professional buyer/seller experience. . Peak Producers In 12 weeks, help your agents get the skills to build a rock-solid real estate business and overcome the peaks and valleys in income and referrals. -->
• Buffini & Company Magazine

Search Buffini & Company

Buffini & company blog, 9 steps to creating a strategic real estate business plan for 2024.

• Posted on Work by Referral

Catch all the groundbreaking insights of Brian Buffini’s Mid-Year Bold Predictions 2024 , now available on-demand. Has there ever been a more complex time in the real estate industry? Brian gives you the inside scoop on what’s taking place behind the numbers. Watch now.

Creating a comprehensive business plan is essential for real estate agents who want to stay organized, maximize productivity and win market share. Here are 9 steps an agent should take to design a dynamic strategic plan.

1. Define Your Mission Statement

Take some time to reflect on why you are in this business. What are your primary reasons? What benefits will you provide to your potential clients? What do you hope to accomplish by taking on this responsibility?   

2. Define Your Target Audience or Niche Think about what types of clients you want to work with. It could be a category of people (such as new homeowners) or a specific niche (such as retirement communities). Will extra resources or measures be needed to reach them?

3. Evaluate Your Resources

Will you be working by yourself? Determine if it would make sense to hire an assistant or another agent to help manage lead generation. If you have a team, create a flow chart with each member’s responsibilities. That will help you to see who is doing what and identify any gaps to fill.

4. Set Clear Goals

A great model to follow is SMART goals : specific, measurable, achievable, relevant.

Include both short- and long-term objectives, such as annual income targets and the number of transactions you aim to complete.

5. Establish Budget and Financial Projections

Create a detailed budget that accounts for business expenses, such as licensing fees, marketing and advertising, office space and transportation.

Lead generation is your most important priority. A comprehensive, well-designed, multi-faceted marketing campaign is crucial for your business to succeed. As part of your budgeting step, be sure to include this important category and analyze if it makes sense to do in-house or to off source.  

6. Create Strategic Action Steps  

A great customer relationship management (CRM) system will help you run your business with maximum productivity.

• It allows you to organize all your contacts and their detailed information in one place. It also lets you rank contacts by importance and informs you when and how those clients and leads should be contacted.
• It has functionality that creates detailed reports so you can track your transactions and expenses. It should also be able to generate reports, so you know if you are on target to meet your financial goals and what to do to reach them.   
• It helps you stay aligned with your goals, to-do lists and calendars. A CRM can also create action steps based on your goals and current progress and can generate your priority list.

7. Create a Plan for Evaluation and Review

Regularly review your progress and adjust your business plan as needed. Use key performance indicators (KPIs) to see if you are hitting your benchmarks and if you need to adjust your plan.

8. Consider Support and Accountability

Consider working with a real estate coach to help you strategize and implement measures so you can reach your goals. A coach will also help you deal with issues head on to keep you accountable and on task.

9.  Commit to Continuous Learning

Commit to ongoing professional development by attending training seminars and staying updated on industry trends.

Buffini & Company – We’ve Got You!

Buffini & Company’s coaches have already been working to establish systems and resources in place to help get their clients ready and positioned for a strong 2024 selling season. To learn more about how a coach can help you take full advantage of the extraordinary year to come, schedule a free Business Consultation .

Share this:

Leave a reply.

Your email address will not be published. Required fields are marked *

Related Posts

August 19, 2024

Real estate business plan – what you need to build, maintain, and grow your business.

Are you prepared to make this your best year ever? Begin [...]

August 8, 2024

Re/max co-founder shares tips to excel.

When it comes to real estate, there are leaders — and then there [...]

August 2, 2024

Certified full-service professional (cfsp) real estate training | buffini.

The real estate industry is at a crossroads amid legal [...]

July 31, 2024

Prepare to thrive in 2025 with brian’s bold predictions | buffini.

The real estate industry has seen many changes over the last years [...]

July 26, 2024

Real estate lead generation – challenges, strategies, and how to stand out.

Real estate lead generation is the process of identifying and [...]

July 9, 2024

Watch brian buffini’s bold predictions: mid-year 2024 real estate market outlook july 22.

Brian Buffini, the chairman and founder of Buffini & Company, will [...]

See how we help top agents create and grow their own companies — without the burdens of operating a brokerage.

Explore Benefits

Success Stories

See how our partners are breaking production records and surpassing growth benchmarks.

See the Results

Discover who we are, how we work, and what we’re doing to change the real estate industry for good.

Learn About Side

Browse videos, blogs, events and news — compiled to help you work smarter and stay in the know.

View Resources

Side Mobile Menu

• Top-Producing Agents
• Top-Producing Agents with Teams
• Top-Producing Independent Brokers
• High-Potential Agents
• Productivity
• RealTrends Rankings
• States and Managing Brokers
• Partner News
• Own It Podcast
• Market Updates

Download Your 2024 Real Estate Business Planning Worksheet

• Share on Facebook
• Share on X Profile
• Share on LinkedIn Page
• Share via Email

To achieve your goals, you have to have the right plan in place. So we’ve created a 2024 Business Planning Worksheet that will help you consider (and capture):

• ✅ What you need or value most in your business
• 🤓 Your overarching career vision and mission
• 🌟 The unique value you provide to your clients
• 💪 Your strengths, weaknesses, opportunities, and threats
• 📊 Your business and financial goals

You’ll come away with a clearer understanding of what you’d like to accomplish, the key areas you should focus on, and the tactics you should use to make 2024 your best year yet.

Partner with Side

Start the conversation.

Please use a different email address to ensure our team can reach you.

• Buyer Agent 101
• Listing Agent 101
• Getting Your License
• Open Houses
• Stats + Trends
• Realtor Safety
• Social Media
• Website Marketing
• Referral Marketing
• Property Marketing
• Branding + PR
• Marketing Companies
• Purchasing Leads
• Prospecting
• Paid Advertising
• Generate Listings
• Generate Buyer Leads
• Apps + Software
• Lead Gen Companies
• Website Builders
• Predictive Analytics
• Brokerage Tech
• Building a Brokerage
• Recruiting Agents
• Lead Generation
• Tech Reviews
• Write for Us

All products mentioned at The Close are in the best interest of real estate professionals. We are editorially independent and may earn commissions from partner links.

7 Steps to Writing a Real Estate Business Plan (+ Template)

As a licensed real estate agent in Florida, Jodie built a successful real estate business by combining her real estate knowledge, copywriting, and digital marketing expertise. See full bio

• Do Agents Really Need a Business Plan?
• Write a Real Estate Business Plan in 7 Easy Steps
• Identify Who You Are as a Real Estate Agent
• Analyze Your Real Estate Market
• Identify Your Ideal Client
• Conduct a SWOT Analysis
• Establish Your SMART Goals
• Create Your Financial Plan
• Track Your Progress & Adjust as Needed
• Bringing It All Together

Are you ready to take your business to the next level? I’ve got just the thing to help you— a foolproof real estate business plan. But before you start thinking, “Ugh, not a boring business plan for real estate,” hear me out. I’ve got a template that’ll make the process a breeze. Plus, I’ll walk you through seven easy steps to craft a plan to put you ahead of the game and have you achieve your wildest real estate dreams in no time. Your success story starts now.

Key Takeaways:

• A well-crafted business plan is your roadmap to success. It guides your decisions and keeps you focused on your goals.
• Create a solid plan by defining your mission, vision, and values, analyzing your market and ideal client, conducting a SWOT analysis, setting SMART goals, and creating a financial plan.
• Regularly track your progress, review your key performance indicators (KPIs), stay flexible, and seek accountability to ensure long-term success.
• Remember, your Realtor business plan should evolve with your business. Embrace change and stay focused on your goals to make your real estate dreams a reality.

Do Agents Really Need a Real Estate Business Plan?

Absolutely. Your real estate agent business plan is your roadmap to success. Without it, you risk losing direction and focus in your real estate career.

A well-crafted business plan helps you:

• Understand your current position in the market
• Set clear and achievable goals
• Create a roadmap for success
• Track your progress and performance
• Make informed decisions and adjustments

Think of your real estate business planning as your GPS, guiding you from your current situation to your desired destination. It serves as your North Star, keeping you focused and on track, even in challenging times. Invest the time to create a solid business plan, and you’ll be well-positioned to succeed in your market and achieve your goals. Your future self will appreciate the effort you put in now.

Before we dive into this section, get our real estate business plan template ( click here to go back up to grab it ) and work through it as I explain each section. I’ll give you some direction on each element to help you craft your own business plan.

1. Identify Who You Are as a Real Estate Agent

Let’s start with your “why.” Understanding your purpose for choosing real estate is crucial because it is the foundation for your business plan and guides your decision-making process. Defining your mission, vision, and values will help you stay focused and motivated as you navigate your real estate career.

Mission: Your mission statement defines your purpose for choosing real estate. It clearly states what you’re trying to do, the problem you want to solve, and the difference you want to make.

Ex: Wanda Sellfast’s mission is to empower first-time homebuyers in Sunnyvale, California, to achieve their dream of homeownership and build long-term wealth through real estate.

Vision: Your vision statement focuses on the ultimate outcome you want to achieve for your clients and community.

Ex: Wanda Sellfast’s vision is a Sunnyvale, where everyone has the opportunity to own a home and build a stable, secure future, creating a more inclusive and prosperous community for all.

Values: Your core values are the guiding principles that shape your behavior, decisions, and interactions with clients and colleagues.

Ex: Wanda Sellfast’s core values include:

• Integrity: Being honest, transparent, and ethical in all dealings.
• Dedication: Being devoted to clients’ success and going the extra mile.
• Community: Building strong, vibrant communities and giving back.

Clearly defining your mission, vision, and values lays the foundation for a strong and purposeful real estate business that will help you positively impact your clients’ lives and your community.

2. Analyze Your Real Estate Market

As a real estate pro, you must deeply understand your local market. This knowledge includes knowing key metrics such as average days on market, average price points, common home styles and sizes, and demographic trends. When someone asks about the market, you should be able to confidently roll those numbers off your tongue without hesitation.

To quickly become the local expert, choosing specific farm areas to focus on is crucial. Concentrate your marketing efforts and build your local knowledge in a handful of communities and neighborhoods.

Some places to do research include:

• Your local MLS: Check your hot sheet daily
• Zillow: Check out the Premier Agents who show up in your neighborhood
• Social media: Who is targeting their posts to your area?
• Direct mail: Check your mailbox for flyers and postcards
• Drive by: Drive through your farm areas to see who has signs in yards

Once you’ve identified your target areas, start conducting comparative market analyses (CMAs) to familiarize yourself with the properties and trends in those neighborhoods. That way, you’ll provide accurate insights to your clients and make informed decisions in your business.

Remember to research your competition. Understand what other agents working in the same area are doing, who they’re targeting, and identify any gaps in their services. This understanding will help you differentiate yourself from your competition and better serve your clients’ needs. In our real estate business planning template, I ask you to examine and record:

• Trends: Track key metrics, such as days on market and average sold prices, to stay informed about your specific market.
• Market opportunities: Identify situations where there are more buyers and sellers (or vice versa) in the marketplace so you can better advise your clients and find opportunities for them and your business.
• Market saturation: Recognize areas where there may be an oversupply of certain property types or price points, allowing you to adjust your strategy accordingly.
• Local competition: Analyze your competitors’ strengths, weaknesses, and gaps in their services to identify opportunities for differentiation and possibilities to create a more meaningful impact.

Remember, real estate is hyper-local. While national and state news can provide some context, your primary focus should be on specific needs and trends within your target areas and the clients you want to serve. By thoroughly analyzing your local real estate market, you’ll be well-equipped to make informed decisions, provide valuable insights to your clients, and ultimately build a successful and thriving business.

3. Identify Your Ideal Client

When creating your real estate business plan, it’s crucial to identify your ideal client. You can’t be everything to everyone, no matter how much you think you should. And trust me, you certainly don’t want to work with every single person who needs real estate advice. By focusing on your ideal client, you’ll create a targeted marketing message that effectively attracts the right people to your business—those you want to work with. 

Think of your target market as a broad group of people who might be interested in your services, while your ideal client is a specific person you are best suited to work with within that group. To create a detailed profile of your ideal client, ask yourself questions like:

• What age range do they fall into?
• What’s their family situation?
• What’s their income level and profession?
• What are their hobbies and interests?
• What motivates them to buy or sell a home?
• What are their biggest fears or concerns about the real estate process?

Answering these questions will help you create a clear picture of your ideal client, making it easier to tailor your marketing messages and services to meet their needs. Consider using this ideal client worksheet , which guides you through the process of creating a detailed client avatar. This will ensure you don’t miss any important aspects of their profile, and you can refer back to it as you develop your marketing plan .

By incorporating your ideal client into your overall business plan, you’ll be better equipped to make informed decisions about your marketing efforts, service offerings, and growth strategies. This clarity will help you build stronger relationships with your clients, stand out from the competition, and ultimately achieve your real estate business goals.

4. Conduct a SWOT Analysis

If you want to crush it in this business, you’ve got to think like an entrepreneur. One of the best tools in your arsenal is a SWOT analysis. It sounds ominous, but don’t worry, it’s actually pretty simple. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It’s all about taking a good, hard look at yourself and your business.

By conducting a SWOT analysis as part of your real estate business plan, you’ll have a clear picture of your current situation and your future goals. And don’t just do it once and forget about it—review and update it regularly to stay on top of your game.

5. Establish Your SMART Goals

If you want to make it big in real estate, setting goals is an absolute must . But not just any goals— I’m talking about SMART goals . SMART stands for Specific , Measurable , Achievable, Relevant , and Time-bound . It’s like a recipe for success, ensuring your goals are clear, realistic, and have a deadline.

Your SMART goals are an integral part of your overall business plan for real estate. They should be stepping stones to help you achieve your long-term vision and mission. So, analyze your SWOT analysis, ideal client, and market, and craft goals that will help you dominate your niche.

Example Smart Goal: Close 10 transactions in the next quarter.

Make sure to provide as many details as possible behind your goals. Don’t just say, “I want to sell more houses.” That’s too vague. In the example above, the goal is specific: “close 10 transactions.”

If you can’t measure your progress, how will you know if you’re crushing it or falling behind? Ensure your goals have numbers attached to track your success or see where you need to focus more energy. “Close 10 transactions” has a specific number, so you have a way to measure your progress.

I know you’ve got big dreams for your real estate business , but Rome wasn’t built in a day. Set goals that stretch you beyond your comfort zone but are still achievable. This way, you’ll gain confidence, build momentum, and push yourself to new heights. Closing 10 transactions in a quarter is a lofty goal, but it’s still achievable. Your goals should stretch you but still be within your reach.

Relevant goals are the ones that actually move the needle for your business. Sure, becoming the next TikTok sensation might be a lot of fun, but unless TikTok generates most of your clients, it won’t help you close more deals. Your goals should be laser-focused on the activities and milestones that will help you grow your real estate career. In the example above, the goal is specifically related to real estate. 

Deadlines are your friend. Without a timeline, your goals are just wishes. Give yourself a precise end date and work backward to create a plan of action. In the example, the deadline for achieving the goal is the end of the current quarter. If you don’t achieve the goal, you can evaluate where the shortfall was and reset for the next quarter.

“Setting goals is the first step in turning the invisible into the visible.”

Tony Robbins

Remember, just like your SWOT analysis, your goals aren’t set in stone. Review and adjust them regularly to stay on track and adapt to business and market changes.

6. Create Your Financial Plan

Financial planning might not be your idea of a good time, but this is where your real estate business plan really comes together. Thanks to all the research and strategizing you’ve done, most of the heavy lifting is already done. Now, it’s just a matter of plugging in the numbers and ensuring everything adds up.

In this real estate business plan template section, you’ll want to account for all your operating expenses. That means everything from your marketing budget to your lead generation costs. Don’t forget about the little things (like printer ink, file folders, thank you cards, etc.)—they might seem small, but they can add up quickly. Some typical expenses to consider include:

• Marketing and advertising (business cards, website , social media ads )
• Lead generation ( online leads , referral fees, networking events )
• Office supplies and equipment (computer, printer, software subscriptions )
• Transportation (gas, car maintenance, parking)
• Professional development (training, courses, conferences )
• Dues and memberships (MLS fees, association dues)
• Insurance (errors and omissions, general liability)
• Taxes and licenses (business licenses, self-employment taxes)

Once you’ve figured out your expenses, it’s time to reverse-engineer the numbers and determine how many deals you need to close each month to cover your costs. If you’re just starting out and don’t have a track record to go off of, no worries! This planning period allows you to set a budget and create a roadmap for success.

Pro tip: Keep your personal and business finances separate. Never dip into your personal cash for business expenses. Not only will it make tax time a nightmare, but it’s way too easy to blow your budget without even realizing it.

If you’re evaluating your starting assets and realizing they don’t quite match your startup costs, don’t panic. This new insight is just a sign that you must return to the drawing board and tweak your strategy until the numbers line up. It might take some trial and error, but getting your financial plan right from the start is worth it.

7. Track Your Progress & Adjust as Needed

You’ve worked hard and created a killer real estate business plan, and you’re ready to take on the world. But remember, your business plan isn’t a one-and-done deal. It’s a living, breathing document that needs to evolve as your business grows and changes. That’s why it’s so important to track your progress and make adjustments along the way. 

Here are a few key things to keep in mind:

• Set regular check-ins: Schedule dedicated time to review your progress and see how you’re doing against your goals, whether weekly, monthly, or quarterly.
• Keep an eye on your KPIs: Your key performance indicators (KPIs) are the metrics that matter most to your business. Things like lead generation, conversion rates, and average sales price can give you a clear picture of your performance.
• Celebrate your wins: When you hit a milestone or crush a goal, take a moment to celebrate. Acknowledging your successes will keep you motivated and energized.
• Don’t be afraid to pivot: If something isn’t working, change course. Your real estate business plan should be flexible enough to accommodate new opportunities and shifting market conditions.
• Stay accountable: Find an accountability partner, join a mastermind group, or work with a coach to help you stay on track and overcome obstacles.

“It’s the small wins on the long journey that we need in order to keep our confidence, joy, and motivation alive.”

Brendon Burchard

Remember, your real estate business plan is your roadmap to success. But even the best-laid plans need to be adjusted from time to time. By tracking your progress, staying flexible, and keeping your eye on the prize, you’ll be well on your way to building the real estate business of your dreams.

How do I start a real estate business plan?

Use this step-by-step guide and the downloadable real estate business plan template to map your business goals, finances, and mission. Identify your ideal client so you can target your marketing strategy. Once you’ve completed all the business plan elements, put them into action and watch your real estate business grow.

Is starting a real estate business profitable?

In the most simple terms, absolutely yes! Real estate can be an extremely profitable business if it’s run properly. But you need to have a roadmap to follow to keep track of your spending vs income. It’s easy to lose track of expenses and overextend yourself when you don’t have a set plan.

How do I jump-start my real estate business?

One of the easiest ways to jump-start any business is to set clear goals for yourself. Use this guide and the downloadable template to ensure you have clear, concise, trackable goals to keep you on track.

How do I organize my real estate business?

Start by setting some SMART goals to give yourself a concrete idea of what you see as success. Then, make sure you’re using the right tools—customer relationship manager (CRM), website, digital document signing, digital forms, etc., and make sure you have them easily accessible. Try keeping most of your business running from inside your CRM. It’s much easier to keep everything organized if everything is in one place.

Now, you have a step-by-step guide to creating a real estate business plan that will take your career to the next level. Taking the extra time to map your path to success is an essential step in helping you achieve your goals. Spend the extra time—it’s worth it. Now, it’s time to do the work and make it happen. You’ve got this!

Have you created your real estate business plan? Did I miss any crucial steps? Let me know in the comments!

As a licensed real estate agent in Florida, Jodie built a successful real estate business by combining her real estate knowledge, copywriting, and digital marketing expertise.

51 Comments

Add comment cancel reply.

Your email address will not be published. Required fields are marked *

Related articles

The best & worst time to sell a house going into 2025.

According to statistics, the best months to sell a home are from spring through late summer (April to October), while the worst time to sell a house is from fall to winter (November to March).

Real Estate Buyer Questionnaire to Build Rapport & Trust (+ PDF)

Are house hunters ghosting you? The trick to turning prospects into buyer clients is taking the time to listen to their hopes, dreams, and needs. Here's the questionnaire that will help you do just that.

The #1 Open House Checklist Top Agents Use to Get Amazing Results

Want to crush your next open house? We've got a checklist and plenty of pro tips that will give you everything you need to host your most successful listing promotions event yet.

Success! You've been subscribed.

Help us get to know you better.

Your 2024 Real Estate Business Plan Checklist

November 10, 2023

Real Estate Business Planning, Real Estate CRM

We’ve all been there – we put the work in to build out a business plan for your real estate team for the new year, only for it to fall apart come March. All of that time spent business planning in the trash. And here we are again, nearing the end of the year and we’re starting to look ahead to 2024. Instead of going through the same motions in anticipation that your business plan will, again, meet its demise, try changing your approach. See how you can build a real estate business plan that’s flexible, can change as the market does and better yet – be used and employed.

Start by taking a look at your business to see where you can make improvements to generate more money, while also saving money. This is especially relevant if your market is down by 40% or more, which is the case in some areas. A helpful tip you can use to better understand what’s going on in your market is to leverage MLS to look at the units closed last year compared to this year. Identifying realistic growth levers for your business will help set your real estate team up for success. We cover this and more in our latest webinar with our partners, Sisu and Spring B, team leader of the #1 team in Utah and a Sierra Interactive power user. You can watch it here .

Forty percent is a pretty intimidating number, and we know it’s not realistic to try and cut 40% of expenses. So that brings us to the question – how do we bring in more revenue? Using a revenue waterfall methodology to examine your business and identify growth levers will help get you there. There are four main levers that real estate teams can pull to increase revenue:

• Increase per-agent productivity
• Increase price point
• Increase agent count
• Manage expenses

Increase Per-Agent Productivity

When looking at ways to increase revenue outside of ancillaries, you can start by focusing on increasing per-agent productivity. Start by making sure you have standard operating procedures for speed to lead, number of attempted contacts and types of attempted contacts. Accountability here is key, so it’s good to get in the habit of auditing your database weekly to ensure agents are following through on your expectations. If not, pull them off lead flow until rectified. Additionally, setting up action plans with automation to streamline processes and automate messaging, touchpoints and tasks will make it easier for agents to get more done with less. This allows them to focus on the most high-intent, transaction-ready leads while the CRM nurtures the others until they’re ready . Setting up lead ponds is another tool that agents, including new hires, can use to self-source leads and create opportunities. Over everything, the biggest takeaway is that if it’s not in the CRM, it doesn’t exist, or it didn’t happen. Building adoption of the CRM across your entire real estate team is critical to increasing per-agent productivity.

Increase Price Point

The concept of increasing your price point may seem simple, however, it’s easier said than done. It’s far from an easy button, rather a lever you really need to put some sweat equity into. It isn’t even possible in every market. With that said, where do you start? First, ensure that you have content pages set up and optimized on your website targeted to the neighborhoods, cities and areas that have your ideal price point. You should also consider running paid ad campaigns for those areas to increase your brand awareness in your target neighborhoods. The focus here is to farm your target areas and plant seeds through direct mailers, blog posts with a local focus, or a neighborhood website. This begins establishing a presence where you want your increased price point to grow.

Increase Agent Count

The first rule of increasing your agent count? Recruit. The second rule of increasing your agent count? Recruit. Cue Brad Pitt. For many real estate team leaders, this may be the answer and the biggest growth lever you have if expenses are in line, price points are firm and agent productivity is in check. When increasing your agent count, set your new agents up for success with the following:

• A bootcamp to get them ramped and productive quickly
• Train on systems, processes and expectations included in your real estate business plan
• Have new agents shadow veteran agents
• Provide them with a pond or specific lead sources to work. This will get them on the phones early to gauge if they’re going to do the work and fit the profile
• Set benchmarks for performance and clear expectations, meeting frequently to coach on these

Having a good CRM in place that’s simple and intuitive will make the onboarding process much smoother and reduce friction when introducing new agents.

Managing Expenses

The final growth lever is to make sure you understand your expenses and profit margins. The benchmark for real estate profit margin is 30%, and 40% for COGs. It is decidedly difficult to cut much of your expenses, but significantly easier to trim the fat. You can do this by simply looking at your tech stack and identifying what’s working for you and what’s not. Steer clear of shiny object syndrome (as hard as this is), and focus on the technology that your team will actually use. This includes your website, CRM, reporting and action management tools. In addition, look at your paid lead sources – which ones are working, which ones are not? Find the ROI of each to help determine this. When you have this, turn off the lead sources that aren’t working for you and double down on the ones that are. Another option is to partner with a lender to share expenses. 

Build Your Real Estate Business Plan

With these four growth levers in mind, which includes increasing per-agent productivity, increasing price point, increasing agent count, and managing expenses, you can build a more informed real estate business plan with realistic goals and clear areas of improvement. Sierra Interactive’s real estate CRM software will help you thread the needle through efficient lead management, smart lead follow-up and nurturing. See how Sierra Interactive can help put some rocket fuel into your 2024 real estate business plan – schedule a demo with us today.

Kelly Sanchez is the Content Marketing Manager at Sierra Interactive.

Schedule a Demo

Thoughtfully designed features, intuitive workflows and stunning UX. You’re about to find out why top-performing real estate teams pick Sierra.

Previous Post

Video: Thriving in the Current Real Estate Market: Strategies for Success

Video: success through others: how to build a productive, long-lasting and legacy real estate team, related posts.

Real Estate Business Planning

Turn Your Database Into a Growth Engine with...

Lead Generation

Generating Real Estate Seller Leads Online

Unearthing Hidden Leads in Your Real Estate Lead...

Lead Nurturing

The Secret to Real Estate Lead Nurturing Through...

We Hustle, So You Don’t Have To

Explore solutions that free your mind and your wallet.

• Get started

How to Write a Solid Real Estate Business Plan in 2024

March 13, 2024

If you want to grow your real estate business , then you’ll need to get clear on where you want to go and how you can get there.

Research from the Harvard Business Review indicates that entrepreneurs who create formal business plans are 16% more likely to achieve viability than those who don’t. Further studies also demonstrate that business planning can accelerate a firm’s growth by 30% , and the time invested in writing a business plan can significantly enhance the likelihood of success .

In this article, we’ll guide you through the critical elements of a strong real estate business plan, helping you create a unique strategy aligned with your company goals.

Find It Fast

Why every agent and broker should have a real estate business plan

A real estate business plan acts as a strategic blueprint for an agent, team, or brokerage, mapping out key facets, critical milestones, company goals, and the business’s overall financial health. A plan needs a clear vision and roadmap for how the company will achieve its goals and grow within its specific market.

Additionally, general business plans are pivotal in securing capital and compelling potential investors or partners. A great business plan can attract skilled employees and top-level talent, leading to further expansion and growth.

For an agent or a broker, a real estate business plan is essential for determining your identity in the luxury market and what you can offer clients. It helps you hone in on your ideal customer and allows you to assess the financial viability of your business easily. 

Your real estate business plan is a guide to your goals and a clear-cut strategy for how you can stand out from the competition, grow your business, and fulfill your overarching mission.

Real estate business plans: the basics

When constructing your real estate business plan, it’s best to keep things simple, manageable, and achievable. Focus on where you are now, where you want to go, and how you can reasonably get there.

Here are six critical elements of a straightforward real estate business plan:

• Executive summary:  The executive summary serves as a brief overview of who you are, your purpose, and your goals.
• Overview and objectives:  The overview and objectives section can vary somewhat based on your individual needs, but they should include your mission statement, your history, and your objectives.
• Market opportunities and competitive analysis:  Your business plan should outline where market conditions are ideal for the rapid growth of a business and what your competition is already doing in that space.
• SWOT analysis:  SWOT stands for Strengths, Weaknesses, Opportunities, and Threats and is a useful analytical tool for determining your strategic position.
• Marketing plan:  The marketing plan identifies and details how you will reach and attract your target audience.
• Financial plan:  A financial plan is a fairly straightforward snapshot of the economic health of your business.

Most business plans adhere to a timeframe of three to five years, though some are as short as one year, others as long as seven. Although everything in this article provides recommendations for a three to five-year plan, it’s worth looking beyond five years for future growth opportunities.

Creating your own real estate business plan 

Now that you know the main sections of your real estate business plan, let’s dive into exactly what goes into each element. 

Executive summary

A good summary is typically one to two pages (although one is optimal) and should include the following:

• Description of services
• Summary of objectives
• Brief market and competition snapshot (you’ll dive deeper into this later in your business plan)
• Capital or partnership requirements, if applicable

Your executive summary is the one part of your business plan you can recite from memory. There’s no fluff. Consider this your elevator pitch to sell your vision and convince others to join you on your mission.

Overview and objectives

Mission statement.

Your mission statement is why you do what you do—the guiding principles for your business. 

For example, here are two excellent real estate company mission statements:

• Compass : Our mission is to help everyone find their place in the world. Compass is building the first modern real estate platform, pairing the industry’s top talent with technology to make the search and sell experience intelligent and seamless.
• Sotheby’s Realty : Built on centuries of tradition and dedicated to innovation, the Sotheby’s International Realty brand artfully unites connoisseurs of life with their aspirations through a deeply connected global network of exceptional people.

Your history is just that—when you started, location, leadership, milestones, and notable services or specializations.

Objectives are your primary goals. A common technique for establishing your goals is through the “SMART” method, ensuring your goals are Specific, Measurable, Achievable, Relevant, and Time-bound.

Objectives that might cover the course of a five-year plan include:

• Rebrand the company website in 30 days.
• Establish a social media presence in 90 days.
• Close five transactions per month in year one and double transaction volume by year three.
• Double the size of the firm by year five.

Ensure your goals are targeted and realistic within your set time frame. 

More likely than not, your business will have multiple objectives simultaneously. Group them based on category and designate a team member who will be responsible for managing achievements, setting milestones, and assessing progress.

Market opportunities and competitive analysis

Understanding your market and your competition involves taking stock of the landscape’s size, demographics, demands, and trends.

Market opportunities

When determining your market opportunities in your business plan, consider the following questions: 

• What is the size and stability of the market?
• Is the market currently on an upward or downward trajectory?
• What are the current demographics of the market?
• What segment of the market do I want to target? 
• Is there a demand for a particular type of housing? 
• Are there more sellers than buyers, or vice versa? 

Also, pinpoint specific market circumstances that could significantly impact your business, like interest rate trends or local economic development. Be sure to document these insights in your plan as well. 

Competitive analysis

In many business plans, competitive analysis is worthy of its own standalone section. Regardless of how you present it, devote some space to your competition and thoroughly research what they currently do in the real estate market.

Include both immediate and secondary competitors, and note if the market is primed for new competitors in the future. Also, identify the risks and opportunities when comparing your niche market and services versus others vying for similar business. 

Remember to ask yourself:

• What do I offer clients that the competition does not? 
• Can I stand out in this market and generate revenue?
• How can I advertise myself to showcase these differences?

SWOT analysis

Through its matrix-like formatting, you can use data-backed facts to analyze your team’s strengths, weaknesses, opportunities, and threats in a visual way. Here are some questions you can ask yourself for each section:

• Is your brand recognizable?
• Do you have an in-house expert for each specialization within residential or commercial real estate (or both)? 
• Do you have an active pipeline of new leads ? 
• What is your unique selling proposition (USP)?
• Do you lack consistent social media or online content? 
• Is your brand relatively new or unrecognizable ?
• Are you missing out on lead-generation opportunities?
• Is your website engagement lacking?

Opportunities

• Has your team just branched out to a new area of real estate? 
• Is market demand growing in your area? 
• Have you uncovered a new source of referrals ?
• Are there any new teams in your niche that offer a USP similar to yours?
• Are mortgage rates rising enough to slow down demand?

By uncovering factors in each grid of the SWOT analysis matrix, you can identify areas that need immediate attention or capitalize on specific strengths.

Marketing plan

Creating a marketing plan is an exercise in understanding your ideal client and then molding a campaign that ensures you can target those customers. Here are a few key points to outline in your marketing plan:

Demographics

• Consider your ideal client persona, including age, location, income, and profession.
• Consider what attracts this ideal client. What are they looking for in properties? What are they avoiding?
• What type of neighborhoods, amenities, or lifestyle are they seeking?

Marketing channels

• Which platforms are your ideal clients engaging with the most? Which ones do your competitors frequently utilize?

Along with these aspects, consider how to position yourself better than your competitors to attract this client. Think about the benefits you can offer and how you can showcase this with a smart real estate marketing campaign .

Financial plan

A financial framework is a crucial aspect of your real estate business plan since it provides insight into the economic health of your business. It gives you a better idea of the valuation of your business, acts as a guide for your budget, and helps you set more realistic financial goals.  

Here are the elements of a financial plan that should be included:

Profit and loss statement

• This is also called an income statement or pro forma. This shows a company’s profitability (or loss) over a certain length of time.

Cash flow statement

• This statement provides an overview of your actual cash position.

Balance sheet

• A balance sheet shows where you stand regarding assets, liabilities, and equity at a specific point in time.

Operating budget

• An operating budget is a detailed view of your income and expenses, usually over 12 months. 

Break-even analysis

• This outlines the revenues necessary to cover all costs and your business’s potential to be profitable. 

Depending on your real estate business position or if you’re an individual broker or agent, you can simplify this area with just an operating budget and break-even analysis.

4 common mistakes agents make when creating a real estate business plan

1. thinking the business plan needs to be perfect.

Your real estate business plan will not be built overnight. You can still run a successful company while your business plan is being created. Instead of waiting to make a “perfect” business plan, follow our step-by-step guide to get started. Then, you can modify as you learn more about your client, your competition, and the trends in the market. 

2. Not having someone else review your business plan

Like any other business document, having a second pair of eyes review your real estate business plan is always helpful for typos or mistakes and for any glaring questions or inconsistencies. Be open to feedback from people, both in the industry and outside it—if someone is confused by an aspect of your plan, chances are they won’t be the only one. 

3. Not using the business plan to gain more clients

While your plan is useful for an overview of your business and its goals, don’t forget to use it as a guiding tool. For example, once you make your marketing plan, you’ll have a stronger idea of your ideal customer. So, be sure to use that information to create more targeted outreach efforts. This includes:

• Adjusting your marketing and advertising budget
• Creating a more targeted marketing campaign, including website, social media, and email
• Determining how to nurture non-specific outreach efforts such as referrals , SEO , and open houses
• Developing a data analytic strategy—how will you measure your marketing success and make changes if necessary?

4. Not coming back to the business plan 

Your real estate business plan is not a one-and-done proposition or something to be written, tossed in a drawer, and forgotten. 

Make time to periodically reevaluate your progress and see where you stand in reaching your goals. Once every 90 days is a good rule of thumb, but review more or less frequently as you see fit. And if you start hitting those goals early, take the time to make new ones.

Lastly, don’t be afraid to pivot if something isn’t working. Goals can change, so return to your business plan and modify it as your company ebbs and flows. 

Luxury Presence: your real estate business plan partner

With beautifully crafted websites, SEO strategists, and top marketing expertise, Luxury Presence is here to help you define your business and grow in the real estate market. Contact our team of experts today to refine your online presence and stand out from the competition.

Share article

Related posts

• Agent Websites

August 28, 2024

How much does an IDX website cost?

One of the most effective tools in a real estate agent’s digital arsenal is a website that uses internet data exchange (IDX) technology. IDX …

August 27, 2024

How to Create a Powerful Personal Brand in Real Estate (+Worksheet)

One of the most effective ways to differentiate yourself and build trust with potential clients is through personal branding. But what exactly is personal …

August 22, 2024

Million Dollar Branding Advice From the Malibu Life Team

Madison Hildebrand and Jennifer Chrisman have navigated the luxury real estate landscape with remarkable success. Their marketing and branding advice can elevate any agent or …

Get a $500 discount if you book a demo by August 31

See 12,000 clients, including Ryan Serhant, Josh Flagg and Tracy Tutor trust Luxury Presence. Book your demo before August 31 and get a $500 credit.

Book a Demo

Call us at (310) 955-1077

By providing Luxury Presence with your contact information, you acknowledge and agree to our Privacy Policy and consent to receiving marketing communications, including through automated calls, texts and emails.

One moment please...

• Lead Generation
• Listing Agent

6 checklists to amplify your real estate business in 2024

• December 29, 2023

As 2024 approaches, it’s important to take a look back at your real estate year — to reflect on what went well, what didn’t, and what can be improved. Using your reflections, you can chart a clear path forward for your business in 2024.

After your reflection, you’ll want to dive into your end-of-year cleanup in every area of your business. Sound a little bit scary? We promise: it doesn’t have to be! We’ve got you covered with checklists you can use for every major area of your business. These checklists will help ensure your business is up to speed and ready to go for 2024.

Click to download your free workbook!

Tagged with:, must - reads.

Related posts

• Power Broker
• Publications
• Headliners New
• Best Practices
• Our Editors

Getting a Jumpstart on Your 2024 Real Estate Business Plan

The start of a new year gives us an opportunity to establish new goals and get a jumpstart on our plans. With some careful consideration and planning, we can easily set our sights toward success in the upcoming year.

How to update your real estate business plan for 2024

We know it’s sometimes difficult to focus on big-picture items—like marketing your brand—when you’re overwhelmed with a significant to-do list. But we encourage you to schedule a distraction-free day (or two) to focus on the future of your business. 

Here are some questions to ask yourself as you plan the next quarter and year. 

Have I found my niche market?

Some real estate agents have succeeded by narrowing their focus to a specific property type or client. As you think about your future in real estate, consider if this is the right move for you.

Discuss this decision with mentors within your brokerage. Perhaps a service gap needs to be filled in your area. You may be exceptionally skilled with a specific type of client or property. 

If a pattern emerges, research marketing techniques to target these specific clients. For example, do you want to narrow your focus to second homes? Then become the local expert on slip rentals and marinas.

Whatever your demographic is, think about how you will help your potential clients and grow your business with organic referrals.

What are my 2024 business goals?

When you work for yourself, knowing how to set limits within your schedule is challenging. Having specific, measurable goals will help

Here are some goal examples for your real estate business:

• Add X properties/clients from my niche within the first/second/third/fourth quarter of 2024.
• Participate in or sponsor X new local events that cater to my target market.
• Add X social media followers by writing interactive posts and offering helpful niche-focused content.
• Enroll in X hours of continuing education courses focusing on marketing strategies.

As you can see, not all of your goals have to be income-related. 

How should I spend my marketing budget?

Review your goals and what you know about your target demographic. Then, consider the best way to spend your marketing budget to help you meet those goals.

If you have been in the real estate business for a while, measure how much money or time you spent on each marketing strategy. Look at the results of your effort. Ask new clients how they found you so you can determine how much each new client costs.

Need help with your 2024 business goals? Visit https://www.colibrirealestate.com . We offer top-notch continuing education options for your real estate license renewal and to help you grow your business. 

Colibri Real Estate

Colibri Real Estate empowers aspiring and seasoned real estate professionals to start or advance their career through unmatched learning solutions. From qualifying education courses to exam prep and continuing education to professional development, we support your learning throughout your real estate career.

Related Posts

• Thoughts on Leadership: Celebrating Women’s Equality Day

• Legislative Round-Up: Kamala Harris’ Housing Policies Suggest Continuity With Biden

• CRMLS Announces New Thrive Broker Summit

The Dark Side of Lead Generation, and Why Most Agents Are Wasting Their Time and Money

Supercharged Marketing: Help Your Team Create On-Brand Content at Scale

Transparency in Real Estate Transactions: A Critical Imperative

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

CMA’s Offer Great Insight for Clients Looking to Sell

Strategically prepared CMA’s can provide a great outlook on listing prices. Become a Pricing Strategy Advisor today and leverage your knowledge for clients. Become an advisor.

Recent Posts

• Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2024 RISMedia. All Rights Reserved. Design by Real Estate Webmasters .

• Real Estate Magazine
• Past Issues
• Custom Covers
• Upcoming Events
• Event Coverage
• Get Licensed
• REALTOR® Courses
• Continuing Education
• Luxury Designation
• Real Estate Tools
• 2024 Newsmakers
• 2023 Newsmakers
• 2022 Newsmakers
• 2021 Newsmakers
• 2020 Newsmakers
• 2019 Newsmakers
• 2024 Power Broker
• 2023 Power Broker
• 2022 Power Broker
• 2021 Power Broker
• 2020 Power Broker
• 2019 Power Broker
• Join Premier

Photo by Marissa Grootes on Unsplash

We are in the final quarter of 2023, so it’s time to start planning 2024!   There are any number of business planning tools available to you, but most assume that you are actually prepared to get started.

To ensure a smooth path forward in your 2024 business planning, I’ve compiled some crucial considerations with the assistance of ChatGPT. To effectively create and execute your real estate business plan for the upcoming year, gathering specific and pertinent information and data is key.

Local Real Estate Market Data:

Begin by collecting recent sales statistics in your target area. This includes valuable information on sale prices, days on the market, and price trends. Understanding these trends will provide insights into the current state of the market and help you set realistic expectations.

Additionally, determine the median home prices in your market. Knowing the median price will help you identify the price range you’ll be working with, allowing you to tailor your strategies accordingly.

Another critical aspect is inventory levels. Assess the supply of homes available for sale and gauge the level of competition among sellers. This data will guide your pricing and negotiation strategies.

Demographic Information:

Understanding the demographics of your target audience is crucial. This includes factors such as age, income levels, and any other relevant characteristics. Tailoring your marketing and communication efforts to align with your audience’s demographics can significantly improve your success rate.

Niche Research:

If you’re focusing on a specific niche within the real estate market, conduct thorough research on that niche. For example, if you’re interested in probate properties, familiarize yourself with the probate process in your area and how it impacts real estate transactions. Niche expertise can set you apart from competitors.

Networking Contacts:

Compile a list of professionals in your network. This may include attorneys, financial advisors, mortgage brokers, and other real estate agents. Note their specialties and potential referral opportunities. Building strong relationships within your network can lead to valuable business connections.

Website and Online Presence:

Your online presence is a critical component of your business. Collect information and content for your website, including a well-crafted bio, professional photos, property listings, and engaging blog posts. Ensure your website is search engine optimized (SEO) by incorporating relevant keywords to improve visibility.

Social Media Profiles:

Review and update your social media profiles with accurate and current information. Prepare engaging and relevant content to share on your social media platforms. A consistent and informative social media presence can help you connect with potential clients.

Direct Mail Campaign Materials:

Create personalized and compelling direct mail materials tailored to your target audience, such as postcards or letters. Effective direct mail campaigns can generate leads and build brand awareness.

Cold Calling Script:

Develop a concise and persuasive cold calling script that introduces yourself, your services, and the value you offer to potential sellers. A well-crafted script can make your cold calls more effective.

CRM System:

Select and set up a Customer Relationship Management (CRM) system to efficiently manage leads and client information. Input your contacts and create automated email templates for follow-ups, ensuring you stay organized and responsive.

Educational Workshop/Webinar Content:

If you plan to host educational workshops or webinars, prepare presentation materials and content that provide value to your audience. Well-executed educational events can position you as an industry expert.

Marketing Budget Details:

Determine a specific budget allocation for each marketing channel, whether it’s online advertising, direct mail campaigns, or event hosting. Having a well-structured budget ensures you allocate resources effectively.

Continuous Learning Resources:

Stay committed to your professional development by compiling a list of upcoming real estate seminars, courses, and conferences. These opportunities can keep you updated on industry trends and best practices.

Regulatory Information:

Stay informed about local and national real estate regulations, including any recent changes. Compliance with regulations is crucial to maintaining a reputable and ethical business.

Goal-Setting Information:

Define your goals for 2024, breaking them down into quarterly, monthly, and weekly objectives. This approach makes your goals more manageable and achievable. Setting clear goals will keep you focused and motivated.

Performance Metrics and Tracking:

Implement systems to track the performance of your marketing efforts. Key performance indicators (KPIs) like conversion rates and return on investment (ROI) will help you assess the effectiveness of your strategies and make data-driven adjustments.

By diligently gathering this information and data, you’ll be well-prepared to craft and execute your real estate business plan for 2024.

This strong foundation will give you the tools to make smart choices, roll with market shifts, and progress toward your career goals.

Share this:

Author:  Jerry Kidd

Jerry Kidd, GRI, CRS, CRB SRES, ePRO a 38 year veteran of the real estate industry, has listed and sold houses, managed real estate offices, been the IT Director for a major Northern California real estate company as well as being the Training Director for yet another major Northern California real estate company . Jerry earned his GRI early in his real estate career and then went on to earn his CRS and CRB setting the tone for a career-long focus on the importance of continuing education. Along the way, Jerry has earned three Microsoft certifications, MCP, MCP+I and MCSE, as well as one from Cisco, CCNA. Rounding out his list of technology certifications are two from COMPTIA, an A+ and a Network+, as well as the ePRO from NAR. Jerry is currently a California State Certified Instructor for the SRES and GRI programs, presenting courses on working with seniors, listing techniques, technology and advanced technology applications. Jerry is also a NAR Certified ePRO Trainer, zipForms Certified Trainer and a DocuSign Certified Trainer.

Related posts

More From Forbes

These rule changes will impact your next real estate transaction.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

The real estate landscape in the United States has undergone a significant transformation due to a landmark settlement between the National Association of Realtors (NAR) and the Department of Justice (DOJ). This settlement has brought about key changes in how real estate commissions are handled, aiming to increase transparency and empower consumers. If you're considering buying or selling a home, understanding these changes is crucial. Let’s dive into what these changes mean for you.

How The Rules Have Changed

Historically, the typical method for compensating real estate agents has been for the seller to pay a commission on the sale of a property, which would be divided (not always equally) between the real estate agents representing both the buyer and the seller.

Going forward, sellers will have no obligation to pay the buyer agent, though they may choose to do so on a case-by-case basis. That leaves buyer agents to negotiate their compensation with their clients directly. They will be required to make a variety of disclosures to their clients and put in place a written agreement about services and compensation methods at the outset of the home-buying process.

This gives buyers more control over their transactions, allowing them to negotiate commissions directly with their chosen agent or even opt for alternative arrangements, such as flat-fee services or self-representation. At the same time, buyers might have to pay their agent's fees themselves, rather than having them paid by the seller. As a result, these new rules have both positive and negative implications for those engaging in real estate deals.

Pros: How Changes Help Consumers

A significant outcome of the NAR-DOJ settlement is the requirement for increased transparency in realtor fees and services. Realtors are now obligated to provide clear and detailed information about the fees they charge and the services they offer.

The increased transparency is designed to empower consumers to make better choices about which agent to work with and how to negotiate fees. Agents must now disclose all fees, including commission rates, transaction fees, and any additional costs clients may incur. They must also disclose detailed service descriptions, so buyers understand what to expect from their agent.

Today’s NYT Mini Crossword Clues And Answers For Thursday, August 29th

Innovationrx: myocarditis from covid-19 is much more severe than from vaccination, bitcoin prices fell below $58,000 as various factors fueled losses.

This transparency is also hoped to promote competition among agents which may result in lower fees and improved service as agents strive to differentiate themselves in the market. Some experts believe that buyer agents stand to face increased price compression since they potentially have fewer responsibilities than selling agents and are competing with lower-cost tech companies like Redfin.

Beyond transparency, the very nature of the rule change means that sellers will no longer be required to pay the buyer's agent, meaning the cost of selling a house could be lower. A seller may choose to pay the buyer's agent as a negotiating tactic, but they will not be obligated to do so.

Cons: How Changes Complicate Choices for Consumers

A big question about the new rules is how imposing they will be on home buyers. Buyers, whose agents were typically paid by the seller of the property, could now be responsible for paying their agents directly. This shift could introduce new financial challenges, particularly for first-time homebuyers.

Consider this:

If you purchase a $500,000 home, the buyer agent commission of 2.5% would amount to $12,500. That’s no small sum, especially for first-time home buyers who have no current home equity to draw upon. While buyers might be tempted to roll these costs into their mortgage, federal regulations currently state that buyers are not allowed to roll this fee into their mortgage, like they can with closing costs. As a result, that 2.5% buyer agent fee could significantly change what a buyer can afford.

A 20% down payment on that same $500,000 home would amount to $100,000. That's a big saving goal already, but now a buyer could have to save the additional $12,500 to pay their agent. If they can't, they would have to reduce their down payment by the amount of the buyer agent's fee, leaving them with $87,500, 20% of a notably less expensive home of around $437,500.

Some buyers may only be able to afford the home they want if their seller is willing to pay their agent. This poses two challenges for buyers.

First, buyers now have to agree on a compensation method with their agent before they know if a seller is willing to cover the costs. The compensation agreed to must be specific, so a buyer can't just agree to pay whatever amount the seller is willing to cover.

Second, it may become difficult for buyer agents to find sellers who are willing to pay the buyer agent's fees. Seller agents are not allowed to specify if the seller is willing to pay the buyer's agent on the MLS system. That could make the home-buying process more challenging for consumers and tougher on agents to find their clients the right deal.

So, who stands to save money? It depends on which side of the transaction you are on and the fees you negotiate with your agent.

Sellers who opt out of paying the buyer's agents should stand to save money, though this may limit which consumers can afford to buy their property. Buyers, who historically have paid zero, are likely to pay more under these new rules unless the seller voluntarily covers their agent's costs.

There is hope that with increased competition and transparency, commission rates for real estate transactions will come down across the board. They have traditionally averaged about 6% but have lowered to around 5% over recent years. Some believe commissions could end up around 3% or 4%, though time will tell.

Ultimately, the full impact of these changes may take time to unfold. If you're considering buying or selling a home, it's crucial to stay informed and consult with a knowledgeable real estate professional who can guide you through the process. By doing so, you can make the most of the opportunities presented by this evolving market while avoiding potential pitfalls.

• Editorial Standards
• Reprints & Permissions

• Best Hearing Aids
• Best OTC Hearing Aids
• Most Affordable Hearing Aids
• Hearing Aids: See All Topics
• Best Medical Alert Systems
• Best Medical Alert Systems with Fall Detection Devices
• Best Medical Alert Watches
• Medical Alert Systems: See All Topics
• Best Mattress for Back Pain
• Best Mattress for Arthritis
• Best Adjustable Beds
• Sleep: See All Topics
• Explore All Adviser Topics
• Explore NCOA.org

The NCOA Adviser Reviews Team researches these products & services and may earn a commission from qualified purchases made through links included.

The NCOA Adviser Reviews Team researches these products & services and may earn a commission from qualified purchases made through links included. NCOA does not receive a commission for purchases. If you find these resources useful, consider  donating to NCOA .

Estate Planning Guide and Checklist for 2024

Key takeaways.

• Common estate planning documents are wills, trusts, powers of attorney, and living wills.
• Everyone can benefit from having a will, no matter how small their estate or simple their wishes.
• Online estate planning services offer basic packages for less than $200.
• Estate planning attorneys can cost several hundred dollars per hour.
• Estate plans must be updated after significant life events.

Why you can trust us

Our Reviews Team consists of trained lawyers who have spent hundreds of hours researching estate planning and using the services we recommend. We only recommend services we find to be helpful and accurate. To develop our reviews and guidance, we:

• Spent 300 hours researching and using online estate planning services
• Consulted with legal experts, probate attorneys, and financial planners to learn the best practices in estate planning
• Went behind the paywall to gain firsthand experience with five of the top online will creation services to review and compare them with each other
• Read hundreds of customer reviews on trusted third-party websites, such as Better Business Bureau (BBB) and Trustpilot

What is estate planning?

Organizing your affairs in preparation for the end of your life is an important task, and estate planning is an ongoing process that includes much more than writing a will. This type of planning helps determine who can make decisions on your behalf, who takes care of your dependents, and how to avoid unnecessary taxes and waiting periods.

Estate planning covers any decisions regarding money, property, medical care, dependent care, and other matters that can arise when a person dies.

The biggest benefit of estate planning is peace of mind—you’ll know your wishes will be fulfilled for the benefit of your loved ones. At the very least, everyone should have a simple estate plan in place.

Elements of estate planning

Most of this process consists of creating and finalizing estate planning documents, such as wills, trusts, powers of attorney, and living wills. You can be as detailed as you want. Some people even include a letter of instruction with their estate to walk their family members through the documents.

A will, formally called a “ last will and testament ,” is a legal document stating how you want your executor (the person legally obligated to administer your estate) to distribute your assets when you die.

Dying without a will is known as dying “intestate,” which means state law will dictate what happens with your estate.

Probate refers to the process of distributing your estate after you’ve died. Your estate will go through the probate process whether you die with or without a will, but having a will ensures your executor honors your wishes. Going through probate court without a will is more time consuming and expensive, with the money coming out of your estate first.

If you already know where you want your assets to go, it’s easy to make a will without a lawyer . Online will services offer interactive questionnaires to help you create a legally binding will specific to your state.

A trust is a legal contract that allows another person (the “trustee”) to hold property for you (the “grantor”). This is typically so the beneficiaries (individuals or institutions who stand to inherit something) can use the property at some point in the future. You can place money, physical assets, or anything else of value in a trust.

Trusts are also helpful to hold property when beneficiaries are minor children who are not yet fit to handle their full inheritance. In that situation, the property will stay in the trust until the beneficiaries reach a certain age.

Property is also distributed faster in a trust because you avoid a lengthy probate court process, so it’s sometimes preferred for that reason.

Living trust vs. testamentary trust

You can create a living trust , also called an inter vivos trust, to hold property both before and after your death.

A testamentary trust is a type of trust that a will creates, so it only becomes effective after the grantor’s death.

The difference between these two kinds of trusts is that a living trust is effective while the grantor is alive, and a testamentary trust only becomes effective after the grantor’s death.

Revocable vs. irrevocable living trusts

A revocable living trust is one where the grantor retains the right to modify, amend, revoke, or terminate the trust. In an irrevocable living trust, the grantor is not allowed to make changes to the trust, but some states may allow the trustee to transfer property in and out of an irrevocable trust with permission from the trust’s beneficiaries.

A revocable trust becomes irrevocable when the grantor dies, since they can no longer make changes to it. Some people choose to place their assets in a revocable trust rather than only using a will. Upon the grantor’s death, the executor distributes assets in a trust faster because they don’t have to go through probate.

Helpful hint: Trusts are not just for wealthy people. Anyone who wants their property to go to their relatives in a quick and easy manner can create a trust. For example, parents of young children may put property in a trust specifically designated to fund a child’s education.

Power of attorney

Power of attorney (POA) refers to the authority you give someone else to make legal, financial, or medical decisions on your behalf. These documents are commonly included in online estate planning service packages.

The person to whom you grant power of attorney is called your “agent.” You identify this person in a document that only takes effect when you are considered unable to act on your own behalf, or you can grant someone POA for a specific purpose, such as purchasing a vehicle for you.

If you become unable to manage your own legal or financial affairs and you have not designated an agent to act on your behalf, a court may appoint one for you. Each state has its own laws on POAs, but the general types to be aware of include (but are not limited to) durable, limited, and financial.

A durable power of attorney means your agent can continue to act on your behalf even when your situation changes, such as if you become ill and are unable to make decisions. It can grant broad authority or be restricted to a specific purpose.

Helpful hint: Some states allow “springing” durable POAs, which means the POA only takes effect when you are deemed incapacitated. This is useful if you don’t want to give someone else decision-making authority right away, but want protection if you ever need someone to advocate on your behalf.

A limited power of attorney gives the agent authority to make decisions for a specific purpose, or for a limited period of time. In contrast, a general POA gives the agent broad authority to act.

A financial power of attorney gives the agent authority to manage your financial affairs. You can make this effective immediately or at the time of an event, like a sudden incapacitating illness or death.

Health care decisions

Health care is one of the most common aspects of estate planning. You want someone you trust to help ensure your wishes are respected if you become unable to advocate for yourself. Living wills, health care proxies, and advance health care directives are tools you can use to protect yourself in the future.

Living wills

A living will states your preferences regarding health care planning, such as whether you want life-extending treatment, how you want to manage long-term care, what procedures you do or do not want, and other end-of-life matters.

Health care proxies

A health care proxy is a durable POA specifically for medical treatment—you appoint someone to make decisions on your behalf when you are deemed unable to do so by a medical professional.

Advance health care directives

Advance directives is an umbrella term that can refer to any document regarding future medical decision-making. It can refer to a living will, health care proxy, or other legal document.

One document to include with your advance directive is a HIPAA authorization. HIPAA stands for Health Insurance Portability and Accountability Act (1996). 1 This federal law protects your medical records by requiring a signed authorization form before you grant access to someone other than yourself. Having a signed authorization for your agent ensures they can access your medical records when the directive takes effect.

Tax planning documents

Taxes can take an alarming percentage of what you leave to your beneficiaries, but you can limit what taxes your estate pays in a few ways. Each state has its own tax laws, so your obligation will depend on where you live. While financial and tax planners are best equipped to advise you on these matters, you should consider a few types of taxes when organizing your affairs: estate, inheritance, and gift taxes.

According to the IRS, an estate tax applies to estates valued more than a certain threshold at the time of death. 2 You calculate the tax by:

• Adding the fair market value of everything a person owns
• Taking out deductions
• Adding the value of gifts made during the person’s lifetime
• Taking out any credits

If the estate value is above $13.61 million (as of 2024), the estate pays a tax to the federal government.

Inheritance tax

Only six states impose inheritance taxes:

• Pennsylvania

While estate taxes are owed to the federal government, inheritance taxes are owed to the state government. Additionally, while estate taxes are paid directly from the estate itself, inheritance taxes are paid by the heir or beneficiaries based on what they received in probate.

These taxes do not apply to surviving spouses or to payouts from life insurance policies. Instead, inheritance taxes usually only apply to more distant relatives and heirs. It’s unlikely this tax affects you, but it’s good to be aware of it if you live in one of the six states that apply it.

Many people choose to make gifts during their lifetime to reduce the value of their estate when they die. According to the IRS, gifting can take different forms : selling something for less than its full value, transferring the right to use income from property, or transferring money or property without expecting to receive the full value in return. 3 Usually, the person giving the gift owes the tax, but other arrangements are possible with the advice of a tax professional.

Estate planning checklist 2024

The best way to approach estate planning for the first time is to make a checklist for yourself. Everyone has unique needs, and an estate planning attorney may be helpful if your needs are complex. Before making the choice whether to hire an attorney or do it yourself, these are general steps you can take to get started.

☐ Take an inventory

Write down everything you own of value that you can think of. This may seem overwhelming, but keeping a running list of assets is worth the time to make sure nothing important is left out. Make sure to consider both tangible and intangible assets. Tangible assets are:

• Other physical items of value

Intangible assets are:

• Bank accounts
• Retirement accounts, like 401(k)s or IRAs
• Life insurance plans
• Financial elements, like bonds or annuities
• Other nonphysical items

Listing liabilities, like mortgages, lines of credit, and other debt, is a good idea as well. That’s because certain debts must be paid—even after death. In that case, it will come out of your estate.

☐ List your family members

The purpose of listing your family members is to account for the needs of immediate family and dependents. Your will and life insurance policies are the primary ways to plan for the needs of your surviving spouse and make guardianship designations for children and other dependents. Many people also make arrangements for pets.

☐ Choose which directives you want in place

The more you plan ahead, the fewer decisions you’ll have to make during an already stressful time. The tools discussed in this article (such as living wills, powers of attorney, and trusts) make navigating illness and other end-of-life matters easier because you’ll have a plan for most scenarios. Decide which tools you want in place and how to set them up.

Once you know which directives you want to include in your life plan, talk to anyone you are considering naming as an agent. You’ll want to be sure they are willing to act if needed. You should also consider naming secondary agents if the first person is unavailable when the directive takes effect.

☐ Designate your beneficiaries

A beneficiary is a person or institution inheriting a piece of your estate, such as money, physical property, or control of or interest in a business.

You should name your beneficiaries on your bank accounts, retirement accounts, and life insurance policies. If you name beneficiaries to those accounts in your will, make sure the names match to avoid any confusion.

Choose backup beneficiaries for your assets if a person is unavailable or dies before your estate distribution. You can also name a beneficiary in a “residuary” clause in your will. This person will inherit anything left over after your estate distribution.

Helpful hint: This is a good time to check the named beneficiaries on all of your accounts to make sure they are updated. For example, if you are married for the second time, and your first spouse is still named as a beneficiary of a bank account, you can change it to your current spouse to avoid conflict in the future.

☐ Look up your state’s laws

States have different laws regarding what happens when a person dies. To ensure you have optimal asset protection, check your state’s probate and estate or inheritance tax laws . If you believe an estate or inheritance tax may apply in your state, contact a professional to help you reduce your tax burden as much as possible.

☐ Choose a law firm or online service

Now that you have a clear picture of your estate and who should receive it, you can decide whether an online estate planning service is right for you.

If you aren’t leaving behind any dependents and you have a good idea of how you want to distribute your estate, you can easily find an online legal service to get you started with estate planning documents and help you create a will online. Many services include living wills and POAs, as well as the option for attorney advice.

If you have dependents who will need care after you’ve died, you want to disinherit a family member, or you’re generally having trouble deciding how to divide your estate, you have two options. The first is to use an online estate planning service and opt for the package that includes attorney assistance. Services will typically charge an annual fee to have access to an attorney. Still, this fee is likely to be less than paying for a private attorney.

Our top choices for estate planning services offer basic will packages starting at $39.99. But you can get a package that includes attorney assistance, as well as additional estate planning documents, for around $249. Estate planning attorneys will either offer services for a flat fee or charge several hundred dollars per hour to work with you.

If you have more complex needs, you may want to contact a law firm specializing in estate administration and planning. Many attorneys offer free consultations to help you find the best fit.

After estate planning

Once you’ve finalized all the necessary documents and the originals are in one safe space, remember to keep them updated.

We spoke with Tim Hurban , Esq., an estate planning attorney licensed in Georgia and Michigan with more than 12 years of experience, about how often and when you should update your estate planning documents. He advised “updating your will and other estate planning documents . . . based on individual circumstances and life events.” Specifically, Hurban told us you should review and update these documents in situations such as changes in:

• Family structure (marriage, divorce, children, grandchildren)
• Assets and liabilities (property, business, financial circumstances)
• Laws (tax, inheritance)
• Personal wishes
• Health care preferences

Typically you should revisit your estate plans every three to five years—even without major life changes. If you create your documents using an online will maker service, many services offer free, unlimited changes for at least the first 30 days after purchase. With services that offer a membership, you’ll generally be able to make unlimited updates to your estate documents, so long as you pay the monthly or annual subscription. The Reviews Team chose Trust & Will as the “Editor’s Pick” in our roundup of the best online will makers of 2024 because of their helpful guidance and ongoing updates, a service that costs $199.99.

You can supplement the benefits of estate planning by using other tools to plan for your future. NCOA’s Age Well Planner gives personalized guidance on financial, health, and other decisions.

Frequently asked questions

Estate planning is not only about your peace of mind—it gives your loved ones guidance on how to move forward after you’re gone. It also plans for the care of individuals or animals who depend on you. Effective estate planning can also minimize the tax burden and probate costs that would typically deplete your estate.

The biggest mistake you can make in estate planning is failing to have a plan at all. A simple will is better than no plan—even if your situation is complicated. Other common mistakes are not properly executing estate planning documents, not providing for future care of dependents, and not expressing wishes for end-of-life care.

Not necessarily. Many small or straightforward estates can be managed using a low-cost online service. These services sometimes provide the option of consulting with an attorney for an additional fee. For very large or complex estates, consulting a specialized attorney or tax professional is a good idea.

Absolutely not! Everyone benefits from estate planning. In fact, failing to plan can lead to lengthy court processes and high probate fees, which affect small estates to a greater degree than large ones. Planning ahead allows your loved ones to keep as much of your estate as possible by avoiding unnecessary costs or taxes.

Have questions about this review? Email us at [email protected] .

• Centers for Disease Control and Prevention. Health Insurance Portability and Accountability Act of 1996 (HIPAA). Found on the internet at https://www.cdc.gov/phlp/publications/topic/hipaa.html
• IRS.gov. Estate Tax. Found on the internet at https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax
• IRS.gov. Frequently Asked Questions on Gift Taxes. Found on the internet at https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

Column: No, folks, Harris isn’t planning to tax your unrealized capital gains — but a wealth tax is still a good idea

• Copy Link URL Copied!

That fetid gust of hot air you may have detected wafting from Republican and conservative social media postings over the last day or two was a fabricated claim that Kamala Harris is plotting to tax everyone’s unrealized capital gains if she becomes president.

That would be a departure from current law, which taxes capital gains only when the underlying assets are sold, or “realized.”

That it’s a mythical allegation hasn’t stopped right-wingers and GOP functionaries from hand-wringing over the economic implications of any such change, and over the purportedly horrible impact on average Americans.

Whenever there is in any country, uncultivated lands and unemployed poor, it is clear that the laws of property have been so far extended as to violate natural right.

— Thomas Jefferson

Here, for instance, is the far-right blowhard Mike Cernovich, tweeting Tuesday on X : “If you own a house, subtract what you paid for it from the Zillow estimate. Be prepared to pay 25% of that in a check to the IRS. That’s your unrealized capital gains taxed owed under the Kamala Harris proposal.”

And Chicago venture investor Robert Nelson : “Taxing unrealized gains is truly the most insane, economy destroying, innovation killing, market crashing, retirement fund decimating, unconstitutional idea, which was probably planted by Russia or China to destroy the economy. Dems need to run away from this wildly stupid idea.”

Get the latest from Michael Hiltzik

Commentary on economics and more from a Pulitzer Prize winner.

You may occasionally receive promotional content from the Los Angeles Times.

All right, guys, take a deep breath. Harris hasn’t proposed taxing your unrealized capital gains, or mine. What she has said, as the Harris campaign told me, is that she “supports the revenue raisers in the FY25 Biden-Harris [administration] budget. Nothing beyond that.”

So what’s in that Biden-Harris administration budget for fiscal year 2025 ?

The budget plan does indeed call for taxation of unrealized capital gains held by the country’s uber-rich. That’s part of its proposal for a 25% minimum tax on the annual income of taxpayers with wealth of more than $100 million — a wealth tax. If you’re a member of that cohort, lucky you. But at that level of affluence you don’t have grounds to complain about paying a minimum 25% of your annual income.

Anyway, there aren’t very many of you “centi-millionaires,” as the category is known— 10,660 in the U.S. , according to a 2023 estimate. That includes a handful of centi-billionaires such as Elon Musk ($249 billion, according to Forbes ), Jeff Bezos ($198.5 billion) and Mark Zuckerberg ($185.3 billion). It’s doubtful that anyone in this category is poring over Zillow estimates to calculate the sale value of his or her house (or houses).

Column: Are Republicans who got pandemic debt relief hypocrites for complaining about student debt relief? Yes

Republicans criticizing Biden’s student debt relief plan took millions of dollars in pandemic relief loans and never paid them back. But they say that’s different.

April 16, 2024

Several other proposals in the budget plan are relevant to taxes on the wealthy. One would restore the top income tax rate of 39.6%, which was cut to 37% in the Republicans’ 2017 Tax Cut and Jobs Act; Biden proposed to allow that cut to expire as scheduled next year. The restored top rate would apply to income over $731,200 for couples, $609,350 for singles, starting with this year’s income.

Another provision would raise the tax rate on capital gains and dividends to the same rate charged on ordinary income — but only on annual income exceeding $1 million for couples ($500,000 for single filers). Under current law , capital gains and dividends get a huge break: The top rate is 20%, though it’s zero for couples with income of $89,250 or less ($44,625 for singles), and 15% for those with income more than that but less than $553,850 ($492,300 for singles).

The preferential rates on cap gains “disproportionately benefit high-income taxpayers and provide many high-income taxpayers with a lower tax rate than many low- and middle-income taxpayers,” the White House explains. They also “disproportionately benefit White taxpayers, who receive the overwhelming majority of the benefits of the reduced rates.”

The proposal would also eliminate the notorious step-up in basis enjoyed by heirs. Currently, if those inheriting stocks, bonds, real estate or other capital assets sell those assets, they’re taxed only on the difference between what they were worth at the time of the original owner’s death and their value upon the subsequent sale — not the difference between what they cost when purchased (the “basis”) and what they were worth when ultimately sold.

This process turns the capital gains tax into what the late Ed Kleinbard, the tax expert at USC, called America’s only voluntary tax. Since owners of capital assets don’t pay tax on their appreciation in value until they’re sold, they can defer the tax indefinitely by simply not selling. When they die, the step-up in basis extinguishes the prior capital gains liability forever, leaving only a tax on any gains the heirs reaped starting from the date of their inheritance.

And rich families can enjoy the benefits of their capital portfolio by borrowing against it, never having to sell. That’s an option seldom available to the ordinary taxpayer, who may have to sell to make ends meet. This is how those families perpetuate their fortunes without paying their fair share of income tax.

The Biden plan would repeal the step-up for heirs by levying the capital gains tax on the bequeathed asset, calculated from the original purchase and charged to the decedent’s estate. Inheritances by spouses would be exempt, and the existing exemption of $250,000 in gains per person on the transfer of a principal residence would remain in effect.

Column: Something for Biden to brag about — his IRS funding more than pays for itself

Biden’s budget infusion for the IRS produced a bounty of revenue from audits of the rich — about $6 in revenue for every $1 spent. It’s hard to find a better bargain.

March 7, 2024

Biden’s plan also would increase the net investment income tax and Medicare tax rates to 5% each from the current 3.8% on income over $400,000. That would bring the top capital gains rate to 44.6%.

Is that a lot? Too much? Not enough? It’s true that the capital gains tax has typically been lower than the tax on ordinary income, reaching as high as 40% only briefly in the 1970s. Overall, however, it’s a relative pittance in postwar terms: The top tax rate on ordinary income was 90% or higher from 1944 through 1963, 70% from 1965 through 1981, and 50% from 1981 through 1986. Americans enjoyed unexampled prosperity throughout most of that time span.

That brings us back to the wealth tax idea, which terrifies the rich and their water-carriers in the press and punditocracy. Noah Rothman of the right-wing National Review, for example, got especially exercised over Michelle Obama’s critique of “the affirmative action of generational wealth” in her speech at the Democratic convention Tuesday night.

“The idea that accumulating material wealth and bequeathing it to your offspring with the hope that they build on it and do the same for their children is one of the fundaments of the American social compact,” Rothman grumbled . “Trying to make that sense of industry into a source of shame is absurd.”

The idea that the offspring of millionaires and billionaires are building on their inherited wealth is pretty, but in practice rare. As the wealth management firm UBS reported, last year for the first time in the nine years that it had been tracking extreme wealth, billionaires “ accumulated more wealth through inheritance than entrepreneurship.” This “great wealth transfer,” it added, “is gaining momentum.”

As I’ve written before , the concentration of wealth in America has reached levels that make the gilt of the 19th century Gilded Age look like dross. In the U.S. there were 66 billionaires in 1990, and about 750 in 2023 .

Column: Is America cheating its children to subsidize old people? Refuting a common falsehood

Fiscal hawks love to claim that America is shortchanging its youth by spending so much to support its seniors. But the real economic war is between the rich and everyone else -- and the rich are winning.

Nov. 30, 2023

Critics of a wealth tax often assert that it’s unworkable because it’s hard to value non-tradable assets — think artworks, or almost anything other than stocks, bonds and real estate, which can be valued at a market price. The Biden plan has an answer to that. Non-tradable assets would be valued at their purchase price or their value the last time they were borrowed against or invested in, with an annual increase based on Treasury interest rates.

As for those who think there’s something un-American in a wealth tax, they can take up the issue with the Founding Fathers, who considered generationally accumulated wealth to be inimical to a free republic.

“Whenever there is in any country, uncultivated lands and unemployed poor,” Thomas Jefferson wrote to James Madison in October 1785, “it is clear that the laws of property have been so far extended as to violate natural right .”

Madison in 1792 viewed the duty of political parties as acting to combat “the inequality of property, by an immoderate, and especially an unmerited, accumulation of riches .” Benjamin Franklin urged the Constitutional Convention in Philadelphia, albeit unsuccessfully, to declare that “the state has the right to discourage large concentrations of property as a danger to the happiness of mankind.”

They didn’t seem concerned that fighting the immoderate accumulation of riches would be complicated or unnecessary. Quite the opposite: They would appear to agree, were they with us today, with the line beloved of equality advocates that “every billionaire is a policy failure.”

Put it all together, and it sounds almost as if Michelle Obama was channeling the Founders. And if Kamala Harris supports the provisions in the Biden budget plan aimed at requiring the super-rich to pay their fair share of taxes — as her campaign confirms — she’s channeling them too.

Latest from Michael Hiltzik

Column: the rise of kamala harris shows that our political ‘polarization’ was always a myth, column: the ozempic revolution in weight-loss drugs exposes the weakest links in our healthcare system — drug pricing and insurance, column: trump’s truth social stock is circling the drain, more to read.

Goldberg: Kamala Harris wants to tackle corporate ‘price-gouging.’ Here’s what she’s missing

Aug. 20, 2024

Column: Harris is right about housing assistance and price gouging. Here’s what you should know

Editorial: Stop taxing tips? It’s a popular idea. And a bad one

Aug. 16, 2024

Pulitzer Prize-winning journalist Michael Hiltzik has written for the Los Angeles Times for more than 40 years. His business column appears in print every Sunday and Wednesday, and occasionally on other days. Hiltzik and colleague Chuck Philips shared the 1999 Pulitzer Prize for articles exposing corruption in the entertainment industry. His seventh book, “Iron Empires: Robber Barons, Railroads, and the Making of Modern America,” was published in 2020. His forthcoming book, “The Golden State,” is a history of California. Follow him on Twitter at twitter.com/hiltzikm and on Facebook at facebook.com/hiltzik.

More From the Los Angeles Times

Losses for Big Tech companies lead Wall Street lower

Aug. 28, 2024

Leonard Riggio, who forged a bookselling empire at Barnes & Noble, dies at 83

Hollywood Inc.

SAG-AFTRA celebrates passage of California AI bill regulating use of digital replicas

Child actor protections are ‘hugely flawed,’ allege teachers on film sets

• Election 2024
• Entertainment
• Newsletters
• Photography
• AP Buyline Personal Finance
• AP Buyline Shopping
• Press Releases
• Israel-Hamas War
• Russia-Ukraine War
• Global elections
• Asia Pacific
• Latin America
• Middle East
• Delegate Tracker
• AP & Elections
• U.S. Open Tennis
• College football
• Auto Racing
• Movie reviews
• Book reviews
• Financial Markets
• Business Highlights
• Financial wellness
• Artificial Intelligence
• Social Media

New US rules try to make it harder for criminals to launder money by paying cash for homes

FILE- This June 6, 2019, file photo shows the U.S. Treasury Department building at dusk in Washington. (AP Photo/Patrick Semansky, File)

• Copy Link copied

REHOBOTH BEACH, Del. (AP) — The Treasury Department has issued regulations aimed at making it harder for criminals to launder money by paying cash for residential real estate.

Under rules finalized Wednesday, investment advisers and real estate professionals will be required to report cash sales of residential real estate sold to legal entities, trusts and shell companies. The requirements won’t apply to sales to individuals or purchases involving mortgages or other financing.

The new rules come as part of a Biden administration effort to combat money laundering and the movement of dirty money through the American financial system. All-cash purchases of residential real estate are considered a high risk for money laundering.

The Treasury’s Financial Crimes Enforcement Network, also known as FinCEN, will administer the rules.

Money laundering in residential real estate can also drive up housing costs – and rising home prices are one of the big economic issues i n this year’s presidential campaign . A 2019 study on the impact of money laundering on home values in Canada, conducted by a group of Canadian academics, found that money laundering investment in real estate pushed up housing prices in the range of 3.7% to 7.5%.

Under the new rules, the professionals involved in the sale will be required to report the names of the sellers and individuals benefitting from the transaction. They will also have to include details of the property being sold and payments involved, among other information.

Treasury Secretary Janet Yellen said in a news release that the new rules address some of the nation’s biggest regulatory deficiencies.

“These steps will make it harder for criminals to exploit our strong residential real estate and investment adviser sectors,” she said.

Ian Gary, executive director of the FACT Coalition, a nonprofit that promotes corporate transparency, called the rules “much-needed safeguards” in the fight against dirty money in the U.S.

“After years of advocacy by lawmakers, anti-money laundering experts and civil society, the era of unmitigated financial secrecy and impunity for financial criminals in the U.S. seems to finally be over,” Gary said.

Some industry representatives welcome the new rules.

Tori Syrek, a spokesperson for the National Association of Realtors, said FinCEN’s final rule is a pragmatic approach to combating money laundering and other crimes. “Bad actors are exploiting the current vulnerabilities,” Syrek said. “FinCEN’s final rule is a pragmatic, risk-based approach to combating money laundering and these other crimes.”

The Biden administration has made increasing corporate transparency part of its overall agenda, including through creating a requirement that tens of millions of small businesses register with the government as part of an effort to prevent the criminal abuse of anonymous shell companies.

However, an Alabama federal district judge ruled in March that the Treasury Department cannot require small business owners to report details on their owners and others who benefit from the business.

Advertisement

Supported by

What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

The vice president supports the tax increases proposed by the Biden White House, according to her campaign.

• Share full article

By Andrew Duehren

Reporting from Washington

In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade.

That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring . Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration.

No one making less than $400,000 a year would see their taxes go up under the plan. Instead, Ms. Harris is seeking to significantly raise taxes on the wealthiest Americans and large corporations. Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.

While tax policy is right now a subplot in a turbulent presidential campaign, it will be a primary policy issue in Washington next year. The next president will have to work with Congress to address the tax cuts Donald J. Trump signed into law in 2017. Many of those tax cuts expire after 2025, meaning millions of Americans will see their taxes go up if lawmakers don’t reach a deal next year.

Here’s an overview of what we now know — and still don’t know — about the Democratic nominee’s views on taxes.

Higher taxes on corporations

The most recent White House budget includes several proposals that would raise taxes on large corporations . Chief among them is raising the corporate tax rate to 28 percent from 21 percent, a step that the Treasury Department estimated could bring in $1.3 trillion in revenue over the next 10 years.

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .

• List Products
• Lists Directory
• Real Estate
• Health Care
• Manufacturing
• The Lists 2022
• Wealthiest Angelenos 2023
• Money Issue
• The Money Issue 2024
• Nominations
• Event Recaps
• 2024 Events
• 2023 Events
• 2022 Events
• 2021 Events
• 2020 Events
• 2019 Events
• Open Nominations
• Custom Publishing
• Trusted Advisors
• Leaders of Influence
• Roundtables
• On the Move: People and Companies
• Business Marketplace

Leaders of Influence: Residential Real Estate 2024 – Sandro Dazzan

SANDRO DAZZAN The Agency

One of the nation’s top real estate agents, Sandro Dazzan serves as managing partner of The Agency Malibu office. Having closed over $2.5 billion in sales throughout his career, Dazzan had a total sales volume of $153,797,000 in 2023. He also represented the seller in one of Malibu’s highest square foot sales in 2022 for $40 million. Previous career highlights include closing Malibu’s highest residential sale in 2020 and highest land sale in Malibu history.

Dazzan was born and raised in Malibu, and watched his mother’s real estate business flourish from a young age. Known for his intimate local knowledge, easygoing nature and strong grasp of technology, Dazzan is a skilled negotiator and natural networker, constantly meeting new people in and around Malibu, which often leads to new listing opportunities. He is about to close on a sale for $61 million, called The Edge.

Return to Index.

Featured Articles

Cedars sinai crosses $1 billion in fundraising initiative, spf:a eyes good design, catona climate embeds carbon removal in ai, related articles, leaders of influence: residential real estate 2024 – brendan brown, leaders of influence: residential real estate 2024 – andrew buss, leaders of influence: residential real estate 2024 – ernie carswell, leaders of influence: residential real estate 2024 – dave caskey, leaders of influence: residential real estate 2024 – yawar charlie.

11150 Santa Monica Boulevard, Suite 350 Los Angeles, CA 90025 323-549-5225

Advertise with Us

• Editorial Calendar
• Events Calendar
• Ad Inquiries
• About the Los Angeles Business Journal
• Frequently Asked Questions
• Newsstand Locations
• Accessibility Statement

Membership Center

• Newsletter Sign-Up
• Forgot Your Password
• Reset Your Password
• Renew Your Subscription
• Buy Back Issues
• Reprint and Licensing Requests

Other Journals

• Orange County Business Journal
• San Diego Business Journal
• San Fernando Valley Business Journal
• Terms & Privacy Policy

© Los Angeles Business Journal | Website by Web Publisher PRO