Some agents have absolutely no idea what their position or ranking is in the local property market when it comes to achieving results. They might know who their competitors are, but they have no awareness of personal ranking with listings, deals, and market share.
Building a commercial real estate business is a gradual process that is supported by regular actions and routines. Over time the right routines bring in more enquiry, quality clients, and better listing opportunity. A top agent will refine and improve their actions and efforts so their results improve. That’s a good reason to look at your Key Performance Indicators (KPI’s).
We are in a ‘performance based industry’, and on that basis we should understand how our personal results are improving; that should be the ‘strategic’ part of what we do. The competition will always be there as we pitch and present for listings, so wouldn’t it be good to understand how your efforts are improving so you can boost your business profile and income?
By setting Key Performance Indicators for yourself, you are taking an interest and strategic position in how you are improving; that’s a good thing. So what are these indicators, and how can you use them? Here are some ideas:
- Coverage – It is important to know that all parts of our industry are impacted by and should be assessed with KPI’s. Sales, leasing, property management, listing, selling, renting, and advertising are all assessable. When you know the numbers, you know what’s working and what needs improvement; you can then make adjustments. Track the segments of the market that you work in, so you can improve your efforts.
- Commissions – The commission that you earn is just a number, however break it down into commissions per property type and size; compare the commission numbers per month and per quarter. You will soon see how better commissions per transaction are achievable; you will also see the best times of year to earn more commission.
- Listings – Time on market changes throughout the year. Importantly the time on market factors should be shortened where possible. Stale listings are ‘time wasting problems’, so refresh your listings and condition your clients to shorten the sale or lease cycle given the prevailing market conditions.
- Market Share – Track and tally the numbers of signboards and internet listings in your area on a monthly basis. Split the numbers up into agent groups. You can also track the time on market of your competitors listing stock, thereby seeing the redundant listing stock. These numbers are valuable when you are pitching or presenting for a listing with a client.
- Marketing Funds – Vendor paid marketing funds are a critical part of promoting a property for sale or lease. Every exclusive listing should have marketing funds supplied by the client before the promotion starts. That fact is a critical part of converting a quality listing to a successful sale or lease. Improve your presentation or listing pitch so you are attracting more marketing funds that suit the property promotion.
- Prices and rents – Monitor the sales and leases occurring at the moment and over the last 12 months. The trends will help you see how prices, rents, yields, and property types are shifting. These factors become valuable when you graph them; you can use the graphs in any property presentation with a client.
So, do you know how you are ‘positioned’ in all of these things in your local property market? Information helps you get results. A top agent understands what the market is doing and why it is happening. They then repeat the things that are working; they optimize their time. Shift your focus and watch your KPI’s.