Track 5 real estate performance indicators
To really know how real estate is performing, it is necessary to keep an eye on a series of indicators. This work must be done frequently. Thus, it is possible to state whether the real estate agency is going to the right path (success) or not.
There are several techniques that help improve real estate performance. Here, we are talking about marketing strategies, such as making an online presence, advertising on social media and putting SPIN Selling into practice.
Among so many numbers and data to pay attention to, we selected five indicators that cannot be missing from your monitoring. They indicate whether the real estate’s performance is satisfactory or not. See more details below:
1) Conversion Rate
The first indicator to be analyzed is the conversion rate. It draws a comparison between the number of leads, potential customers who entered, and how many actually closed the deal. It is not measured in financial result, but in percentage.
To see how each of your brokers is performing, divide the total of approaches he made in the month by the number of sales made. This result can help you know the rejection rate of each member of your team and, if necessary, help you identify which points they need to improve.
You can monitor this indicator with Real Estate Management Software. In addition to offering this data, it provides other functionalities, such as financial management.
2) Average response time reflects on real estate performance
You also need to ask yourself, “How long will it take brokers to acquire a customer?” Associated with your conversion rate, for example, knowing the average broker-to-customer response time can explain why your average sales are not so positive.
With this information, you are now able to apply more accurate feedback to that professional who is at odds with the rest of the team. After all, no customer likes to be kept waiting for answers. Ideally, therefore, the professional’s return is practically immediate.
Of course, brokers have numerous service tools: email, WhatsApp, social networks and so on. Monitoring all these channels is very complicated. But if your team also uses a chat system, measuring this indicator is easier.
3) Average Ticket of sellers/brokers
Now, if you prefer to measure in values, the option is to calculate the average ticket of each broker in your real estate. Just add up the gross sales result of a professional and divide it by the total of closed deals he had. Thus, it is easy to know which broker is bringing the greatest profit for your real estate.
In addition, you can find out if the broker prefers to focus on specific sales with high values or if he prefers to increase his number of trades, regardless of the value of the units.
4) Monthly number of funding
As well as knowing the number of sales, it is also important to know how many fundraisings were made in the last month. After all, today’s funding can guarantee tomorrow’s sales.
This data, however, needs to be used with care so as not to trigger a vanity war among brokers. Carrying out a good volume of prospecting is good, but it’s no use attracting several clients if the broker cannot maintain quality contacts with all of them to the point of increasing their chances of sales. It’s good to stay tuned!
5) How many properties for sale and lease does the real estate agency have?
And in the same way that the number of qualifications can project what your demand is, knowing the number of properties for sale and lease of your real estate company gives you an estimate of your offer. Definitely, they are two important data to guarantee your future negotiations.
All these indexes must be registered. Thus, it is possible to assess whether the average sale of each broker has increased compared to previous months. Therefore, it is essential to have a complete real estate platform, such as vile Imo. Overall, it offers features to register all of your properties, as well as marketing functionality to improve your property’s performance.
Follow-ups need to be periodic and done with great care. Think about it: if the overall result isn’t very good on a certain metric, it should be a case of investing in a qualification course or meeting with the team.
So don’t leave your brokers helpless. Empowering your team is synonymous with improving the real estate’s performance.