Every busy Realtor® knows that there is a moment in the busy selling season that allows space to breathe a little and reflect. This is that time. Just like the way an automobile has a large windshield and a small rear view mirror, it is important to look at where you are going, but to periodically stop and glance at what is behind you. With the close of June and thus the end of the 2nd quarter and 1st half of 2016, this is that moment where a buiness person must reflect and where they are in comparison to their goals and ask the tough questions regarding what is working and what isn't. Here are 6 metrics to consider when analyzing your business year to date:
1) Opened Business: Unlike closed transactions, Opened Business measures the activity that was actual inked during the period of time you are analyzing. It is also one of the leading indicators of future business as well.
2) Closed Business: This is your individual business' revenue. At this time of the year, it is appropriate to take a deeper look at Closed Business and compare to your 2016 goals set before the start of the year. If you have not been a business goal setter previously take a moment and click here:
3) Pending Pipeline: Your Pending Pipeline is clearly a monetized representation of will close in the next 30 / 60 / 90 days but it is also a represenation of the opportunites to generate referrals from currently raving fans. When you see past the dollar signs there is a greater opportunity for relationship building on a whole other level.
4) Average Commission Rate: If you don't have instant access to this information, simply divide your Sales Volume by your Gross AGC and you should come up with a single digit % amount like 3%, etc. This is a number that should be watched very closely as a subtle change in your fee structure can have a big impact over time. Imagine a sailing vessel that sets sail and is off course by 'only .5%.' After a few days at sea, that vessel may overshoot it's target by hundreds or even thousands of miles.
5) Buyer to Seller Ratio: Let's shoot for 50/50 here, give or take. Too many buyers? You're prospecting needs tweaking. Too many sellers? Buyers don't like working with you. Sorry.
6) Average Sales Price: This is self explanatory but simply put it is important to watch and more specifically important on a year after year basis. As your client base grows in income and housing size, so will your average sales price. If you are unsuccessful at that repeat business, this number will level off and you will become frustrated.
Advanced Mid Year Metrics to measure:
- Overall leads YTD (Then broken down by source: Referral, Open House, Mailers, Internet, Paid Ads, etc)
- Marketing Investment ROI
- Target Market Performance Update
- Anticipated Past Buyer Turnover
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