If you work in commercial real estate brokerage, you can and should track your trends and results at a personal level. See and track what is happening in the local property market and then shape your responses and actions based on the market activity. Get to the real facts of what is happening locally.
Things to Watch
Doing things in this way you will also understand just how you compare to your peers and other competitors, particularly so in the key indicators that really matter. So what do you need to watch in the analytics?
Try some of these for starters:
- Listing locations – You will already know that some of your property precincts are more interesting and active from a property perspective. Split your territory up into zones or precincts so that you can work the opportunities in the zone.
- Time on market – When you look at the length of time that a listing is staying on the property market, differentiate the numbers between open and exclusive listings. The exclusive listings should be moving faster than the open listings.
- Types of listings – The key listing type to focus your real estate business into is exclusivity based. In that way you can have the commitment of the client to the marketing campaign and the inspections that you are creating. Control your listings; that’s the rule in all respects. Luck has nothing to do with a result in commercial real estate brokerage today.
- Vendor paid marketing – Properly promoting a property involves specific strategies and advertising spend. The vendor should be paying for the marketing of the exclusively listed property. Make sure that the campaign is well considered and timed for the conditions of the local property market. Tally up the amount of vendor paid marketing that you are converting on a monthly basis.
- Advertising online and offline – Today there are big shifts towards online marketing. That being said, look at where you are spending your marketing money for the quality listings that you have, and then look at how the enquiry is coming in for each listing. Some fine tuning may be required for lifting the results on any property promotion.
- Signboards – The signs that you place on exclusive listings are critical to inquiry generation. The signboard is the silent sentinel of local property interest. When you get a sign placed on a property, the inquiry will start to come in.
- Commissions per transaction – The size of the commissions per transaction will be track-able during the year. The analysis can also occur with sales and leasing listings. Look at how your commissions are changing on the different properties and listings.
- Client list and Database size – Every agent and broker should have a database that they personally administer. Over time that client list should grow in a consistent way. The best agents tend to have a client list that is accurate, up to date, and evolving through deliberate call contact to new people.
- Referral business – Every person that you know in a positive and professional way, is a potential source of new business. Referral opportunities are always there for the asking with the right people.
So you can now see why analytics are so important for brokers and agents. Get your own numbers under control, and look at how things are changing. Tweak the aspects of your business that are showing the best levels of change and momentum. That’s what top agents do all the time as they move upward in their market.