What is more important to you – selling for a record price, or selling a record number of properties? This should be a no-brainer. Of course turnover counts far more than individual sale prices for any agency. So why do so many agents spend so much time and effort chasing the best properties?
In point of fact, most agents would do far better chasing the worst properties especially in good times when they will sell without too much trouble. The vendors tend to be much more easily satisfied and happy to refer you on to others.
The larger point that tends to be overlooked is that real estate for an agent is a numbers game. There are three critical equations:
- In your target canvassing area, how many genuine appraisals do you get called into, and what percentage does this represent of the total number?
- What percentage of your appraisals results in listings?
- What percentage of your listings results in a sale?
You should be continually plotting your results and subjecting yourself to harsh self-examination. By ‘genuine’ appraisal I mean appraisals that subsequently lead to listings. If you are only getting say 10% of the possible appraisals in your area, then your chance of scoring listings is too low. What do you need to do to increase this to say 20%?
Much worse is a failure to convert appraisals to listings. It is better to convert two out of four appraisals (= 50%) than two out of ten appraisals (20%) even though the number of listings achieved is the same. This is because you are not burning as many valuable leads, and wasting so much of your time.
Likewise, what is your conversion rate of listings to sales? Ideally this figure should be close to 100%. If it is beneath 80% then you are either doing something wrong in how you are listing the property such as over-quoting, or your selling technique is poor.
Having identified any weaknesses, you can try to do something about them. A decrease in your results also serves as an early warning that something has changed which needs to be specifically addressed.
Gil Davis is now a university lecturer, but for twenty-five years he was one of Australia’s most successful real estate agents. He wrote the top-selling book Sell for More, packed full of useful tips for agents, which you can purchase on-line through Harper Collins.
Notes from the editor:
Increase your listings conversions with RP Data’s pre-listings iPad presentation app
Win more listings using our free pre-listings presentation app, rp.lister. Walk your vendor through their property and let them compare their neighbours’ property based on attributes and external factors, as well as recent sales and on the market data in the suburb. This ensures you and your vendor can easily come to an estimate value price of what their property is worth, together. rp.lister allows you to then email your client the report straight from the app. Before you leave your client, provide more value by giving them a CMA and Suburb Statistics report. This process will take you less than 10 minutes to prepare before meeting a vendor and will leave them with a tremendous impression when you walk out the door.
- rp.lister is FREE to RP Data subscribers, download it on your iPad today! (If you don’t have an iPad – ensure you’re in our Recent Sales competition where we give away an iPad every month to one lucky winner.)
- Branded CMA reports or Custom reports (such as Suburb Statistics) take less than 5 minutes to create in rp.professional. Watch a 2 minute video to see how simple the process is for CMA reports and Custom Reports.
Log in to rp.professional today and generate custom branded reports the easy way!
For more information on value added reports you can generate in rp.professional, or how to master your rp.lister profile – book in free online training with us here or call 1300 734 318!