With thousands of brokerage firms, the real estate market is highly competitive. Running a successful agency is a demanding task and takes immense determination. Becoming a successful real estate agent depends on several factors. It does not happen overnight and is a long journey. However, keeping a check on a few metrics to determine whether an agent is going in the right direction or not. The determination of real estate performance depends a lot on the business goals. Tracking helps invest in the right areas according to the change in performance.
Measures for Tracking the Success
Productivity is the top metric to assess the performance of a real estate agent. Each closed transaction by the agent contributes to the company revenue irrespective of the traditional splits. One should also keep a check on the annual productivity for a more profound understanding of the work done.
Track productivity both on a monthly and yearly basis to see if a change in approach is necessary. If the agent performs well over the months, it is a positive indicator. Sometimes, annual data may not be possible to track due to agents leaving mid-way. In such scenarios, monthly data works excellent to check the seasonal trends.
Days on the Market
Another metric to follow closely is the days on the market (DOM). It refers to the number of days a property is listed for sale on the multiple listing services or MLS. It is an area that marks quick improvement. It is time for retrospection if some agents have their properties listed for more than the average span.
It is a critical sign of underperformance and needs immediate attention. The number of days on the market depends on various factors ranging from price, location, condition, etc. Understanding the DOM will help coach the required agents and enhance their performance.
This metric is based on the agent’s ability and holds prime importance. This parameter is used to convey the influence and performance of the agent on a large scale. Sales volume refers to the total value of closed deals by sales price. It is not that an agent with 25 sales is not as competent as one with 50.
Factors like sales price, expenses, and commission plans are also considered. Deep knowledge of the sales volume metrics is crucial in understanding how the brokerage makes money. Looking at this metric, a successful real estate agent closes significant deals with better payouts.
Pending commissions hold great value for any brokerage firm or team. It helps in forecasting future revenues and making decisions based on the same. Knowing this metric can help an agency determine whether it has money to invest in recruiting and building the company further.
Stay updated with the pending commissions by running weekly reports. It aggregates the pending stats across various locations. One can compare the figures with previous months or years to be more helpful. Not only that but keeping track of the pending commissions also benefits the seasonal trends.
Profit generation remains the key aspect of any business, including real estate. Successful agents focus on profit generation and analyze their investments based on time and money. The new agents can learn about integrating the use of real estate postcards for lead generation and similar marketing tools for a better impact.
It is successful agents who make successful agencies. An agent can himself decide whether he wants to go solo or work in a team. Integrating the proper marketing techniques and being consistent is key to the success of a real estate agent.