Why Measuring is Important to Your Real Estate Business
What I am talking about is measuring your successes and your failures in your real estate business and finding ways to improve.
This might mean looking at ways to free up more of your time or to make more money or a combination of the two, whatever your definition of success is.
Let’s Start by Looking at the Biggest Mistake Agents Make
This post was inspired by an answer that I wrote on Quora that asked the specific question:
What are the top three metrics that REALTORS® look at to measure their success?
One of the most effective tools in business tracking is developing and writing a business plan, this is arguably one of the best ways to track and measure your business. Unfortunately it is also something that I would argue, the majority of Agents do not do.
Let me ask you a question…Would you ever take off on a trip without knowing where you are going? There will probably be a few of you that would say yes to that question, you are in the very small minority. The majority of us less adventurous types, would likely say no to that question.
So if you say no to taking a trip without knowing where you are going or without at least taking a map, why would you run your real estate business the same way?
Running your real estate business without a road map will not allow you to look back to see how far you have come, or to look down the road to see how far you have to go. Not sure where to start? Try the Google: How to write a real estate business plan
Look to Your Past Clients to Provide Feedback
This is another killer way to measure how well your business is doing….or not doing. Asking your clients to fill out a survey is one way to measure your success with respect to your level of customer service.
As an Agent, I am currently using a company called Real Satisfied to survey my clients near the end of the transaction to find out how we are doing and how we can improve. This is a paid service and one that I like using because of the metrics, graphs and feedback it provides.
There are alternatives if you are watching the bottom line, building a survey yourself through Google Drive or through another service like Jotform is a great alternative. Both of which are free and the results are put into a spreadsheet that you can monitor and use to your advantage.
How Many of Your Appointments Translate into Sales?
Tracking your appointments. Tracking your sales. Tracking how many appointments turn into sales will allow you to speculate for the coming year to determine how many deals you can do by going on a set number of appointments.
Example: 7 Appointments turns into 1 offer written and accepted. I want to do 30 transactions in 2015. I need to go on 210 appointments through the year to achieve that goal.
Now is that scientific? No. Is it proven? I would say to a certain degree, that it can be. If you are not tracking, then how could you possibly tell me no? I know of agents that use this method to track to to speculate for the coming year in their business planning.
Tracking your appointments and your deals will also allow to track where your business came from in that year. Know what you are doing? You are building a database.
Track. Measure. Adjust. Rinse. Repeat.
These are only 3 examples of what you could be doing. There are many other ways to track your results, at least these three will get you started down the right path.