As a real estate agent it is important to measure what is working and what isn’t. In such an unpredictable industry, you need to always be aware of the most important things so you know where you stand and how you can adjust should you need to.
Paying close attention to the ins and outs of your real estate business will also help you stay ahead of the curve to avoid the potential down falls in the real estate market.
Measuring your business and keeping track of what you do and are doing on a daily basis can also help you properly plan future business and reach your goals.
So what and how do you measure your real estate success?
What You Track Increases
I have been trained by many of the greatest real estate and business coaches in the world. All had different styles and ways of teaching as well the material could sometimes vary greatly. One thing that always remained the same was, they all told me time and time again that “What You Track Increases.” Meaning that if you are keeping track or measuring your business it is sure to increase. I tested out their theory and it has never proven wrong in over 10 years. I was measuring and therefore increasing my success every step of the way.
3 Ways To Measure Your Real Estate Success
Know Your Numbers
All of them. Have you ever built a business plan at the beginning of the year but never really knew how or why you came up with that number? You chose it likely because it sounded good, or the top guy in your office said it or it could be possibly close to the amount you need to pay the bills but you’re not quite sure.
Do you know your costs? Your true costs? For example, how much does every lead, deal or listing cost you? Are you actually even making any money?
Tracking your income vs expenses is just the beginning in measuring your success in real estate. You must also always keep track of:
Your average commission
Your average sale price
Cost per lead, deal or listing
Your costs to remain active and licensed
ALL OTHER BUSINESS COSTS
Knowing these numbers will help you build an accurate business plan as well can help you cut costs should you need to in slower months.
Your Lead Conversion Rates
I cannot emphasize this one enough. Tracking leads generated vs leads converted will ensure you are fully aware of how many leads you must generate in order to make a sale. For example if you covert every 4th lead generated into a sale and you want to close 40 deals a year, you then have to generate 160 leads to be successful. (40×4=160) Knowing your true conversion rates takes all of the guessing out of your business plan and helps you to stay on track with your real estate goals.
Where Your Business Comes From
Where are your leads coming from? Knowing and tracking this information helps assist in not only time management but overall efficiency. Each year you can then review and measure what strategies worked and what didn’t. You can then do more or less of each. If most of your leads came from online marketing you can then boost your efforts in the following year. Or if you did very little from your farming efforts you can then re-evaluate your plan, spend less time focusing on that or even eliminate it all together and spend more time focusing on what’s working.
Keep it Simple, Yet Consistent
You don’t have to over complicate how you track your data. A simple pen and notebook will do. Spreadsheets or apps would work also. It doesn’t matter how you track it. It just matters that you do.
Knowing where you stand inadvertently directs your focus towards improvement. Come up with a plan and begin measuring the above right away.
Need help getting started? Let me know!
Wishing you all the success.