The real estate market is ever changing. Despite this, there are some Realtors® who meet their sales goals whether the market’s running hot or barely has a pulse. The key to success is building a good plan from sound strategies and solid numbers. Here are three tips to help you get there.
1. Define how many leads it takes to close a transaction
You won’t find this magic number in any book, video or podcast. No real estate guru will whisper it in your ear. The good news is that it’s already in your hands—or more specifically, your data. By reviewing a few years of lead lists and closed transactions, you’ll find patterns that are unique to your practice and local market.
For example. Although the leads you generate each month across the sales season varies, let’s say it averages 100 leads per month. When you compare month-to-month conversions, you see that four of those leads became clients who closed on properties. So, you know that it takes roughly 25 leads to get a closing.
2. Calculate the number of transactions needed to meet monthly goals
What kind of earnings do you want this year? Now that you know your leads-to-closings ratio, you can set an obtainable goal. Simply divide that sum by the number of active months in your sales season to get a monthly sales figure. From there, you calculate how many transactions you’ll need a month to hit it. That will also give you realistic gauge of how many leads you’ll need every month to reach those closings.
So, if your earnings goal is $240,000, and the average-price home in your market is $300,000 with a 6% commission, you make $18,000 per transaction. So, to hit your goal, you need to sell about 13 homes a year. To achieve that, you’ll need at least 333 leads a year.
3. Determine a plan of action
Leads are the rocket fuel for your transaction engine. Developing a robust marketing plan will help you turn prospects into homebuyers and sellers. From networking and open houses to outreach by email and social media, strike the best balance to stay on budget, on task, and on your way to meeting—and hopefully exceeding—your sales goals for 2021.
Learn more about setting and meeting goals by reading Help Your Agents Meet Their Goals in NAR’s Realtor® Magazine.#BusinessPlanning