Real Estate Is A Numbers Game
Real estate is a numbers game. You have heard that before, haven't you? Usually, this statement is based on the focus of cranking out numbers of contacts. Or, the simple belief that the more people you contact, the more successful you will be. While that does produce a result, just arbitrarily contacting people rarely is the most productive way to spend your prospecting time. All calls and contacts are not created equal.
Leverage the Numbers
Rather, examine how can you leverage the numbers and increase your time with the people that are most likely to list with you or buy from you. If you want to increase your effectiveness, focus your precious time on those things that bring the best return. Remember in the 21st century ... you have to play the relationship game rather than a numbers game!
But there are numbers that are important!
Here are a few key measurements that allow you to make better decisions and set your priorities in a different way.
As you pull together this year's totals, this is a perfect time to delve a bit deeper and examine where you really are and what is and what is not working.
Numbers That Can Make a Difference
Your Hourly Wage
What did you make per hour this year? When I ask this question of agents I meet when I speak, so few have a handle on this, it amazes me. How are you doing business if you do not know what you are worth? If you don't know, do this now: take the net that you made last year and divide it by the number of hours you worked. Now you have a baseline to work from. You can better make decisions about what you personally should do and what you should delegate.
You've also got the place to start from if you want your business to be more profitable next year.
What do you want that number to be for the year? How many hours do you want to work and what do you want to net? This, most likely is a higher number. To get there you have to stop doing low payoff activities and busy work. Write down right now, which three things are you doing that are not the highest and best use of your time. Find someone else to do these things or decide to quit doing them next year. Find someone else to do the transaction coordinating if you aren't a whiz at details and don't like paperwork. Find someone else to do your marketing. Quit writing ads and spending money where you are getting no return.
Your Skill Level
Skill numbers are all about working smarter. The really wonderful reality is that you won't have to generate more leads, work with more buyers or list more homes, you will simply need to raise your level of expertise to become more proficient at your craft.
What will it take? Do you need some advanced sales training? You could:
- Earn the ABR Designation to learn how to close 80 percent of buyers vs the NAR average without a buyer broker agreement of 20 percent.
- Get a coach to help you stay accountable and see how to better leverage your strengths.
Here are your skill numbers ... List your:
- Call Conversion Ratio -- of the calls you get, how many turn into clients?
- Buyer Close percentage -- of the potential buyers that contact you, how many buy? How many did you use an Exclusive Buyers Contract with?
- How many listing appointments must you attend to get the listing?
- Listing/Sold percentage - of all the listings you took this year, what percentage sold? While you are here, also research:
- Your percentage of List To Sale Price vs. The MLS Average
- Your Average Days on Market vs. The MLS Average
These competitive figures also give you ammunition to differentiate you on a listing appointment or in prospecting with FSBOs.
Have Goals that Propel You into Action
Are your goals inspiring you? They probably aren't terribly empowering if you choose them to be 10-15% above last year or if they are a reflection of what someone else thinks you should be able to accomplish. You are unique. Ask yourself, "What goal, if I accomplished it, would make me supremely happy next year." Then go for it, no matter how unrealistic it may seem. Aim high, dream big. Even if you don't hit the goal, you'll be thinking and taking action on a different scale. Ask others to help. Upgrade your skills and personal operating system! Do what it takes to BE a person who can accomplish those goals.
Choose three measures of satisfaction for each area below and write them down, share them and look at them every day!
- Your financial goals
- Your personal goals
Knowing all of these numbers is certainly different than just trying to make more cold calls than anyone else. Act as if real estate is a relationship game!
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