Which Metrics Matter?

Last week we talked about your clients definition of success. This week it seems only fitting that we look at YOUR definition.

The beauty of real estate is that you can create a business that fits with, and supports your life. The trick, though, is holding on to what you decided is the right goal vs what someone else decides it should be.

When I first started, everyone said that my goal should be selling 1 house a week. 50 houses a year sounded like a good plan. For years I worked towards that. Until I realized that it was someone else’s goal – not mine.

I tend to work in waves. There are many weeks that I don’t sell anything. And then there are weeks where I sell 3 homes in a weekend. That actually works better for me. I like the ebbs and flows that come with doing business that way. When I’m on, I might as well pile it on, and then I can take time off and travel or do something else.

I also realized that 50 houses isn’t a number that works for me. I can sell 30-35 properties a year with at most a part time assistant. It keeps my overhead and my stress low. Getting to 50 would require more of a team, which for me isn’t the right move. At least not right now.

So how do you decide what success looks like for you?

Certainly there is a dollar figured involved, but that is only the tip of the iceberg. There are so many other metrics to measure:

  • Baseball games attended
  • Walks taken
  • Date nights enjoyed
  • Travel to new places
  • Laughter shared with friends

THESE are the metrics we should be using to measure our success. Yet, they can be easy to lose sight of, or postponed until a later date.

Post these somewhere to remind you that it’s just as important to fit these into your daily life as it is work. Then start thinking about the how you are going to make it happen.

When Buyers are searching for a home, they have 3 main criteria that they work with: Price, Condition, Location.

As agents, we also have 3 variables to achieve our goals: Price, Commission, Volume.

There are 3 ways to make more money:

  • Sell more expensive properties
  • Charge a higher commission rate
  • Sell more properties

Each one has it’s own pros and cons and some might feel more doable than others.

For me, I’m happy with my commission rate, but each year I try to increase my price point. It’s something that I think agents don’t pay enough attention to. But look at the math:

Let’s say your average price point is $400,000 with an average commission of $12,000 and you sell 20 homes a year. That would give you a yearly income of $240,000.

What if you increased your average price to $500,000 and an average fee of $15,000? You could still sell 20 homes and now you would be making $300,000 a year. That’s an extra $60,000 for the same amount of work!!!

Even if you only increased your price point by $50,000 it’s an extra $30,000 over the course of 12 months.

Small increases can have a huge impact on your bottom line. It doesn’t mean you have to be an uber luxury agent.

Price point is a metric that most agents overlook, or feel like they are powerless to affect. Stay tuned for next week’s blog post and I’ll share some tips for increasing your price point.

To your success!
Nicole

Leave a Comment





Signup to receive Nicole's blog posts via email weekly:

Other Posts

You Are Amazing!

May 24, 2024

Just in case you needed a reminder… You are Amazing You are Enough You are Worthy Let that be your mantra going into this weekend and see what unfolds. The world shows up as a mirror to our beliefs. What does your world look like and what do you experience when these are your core…

Read More

Are Things Happening For You or To You?

May 10, 2024

Wow! This showed up for me big time with week. It’s been a week of highs and lows all rolled into one. On Wednesday, I hosted over 80 agents for a class on Articulating Your Value. It’s something I really struggled with early in my career. Over time I’ve gone from dreading the conversation to…

Read More

Is It A Negotiation Or A Conversation?

April 26, 2024

It’s been a busy week prepping for my upcoming Articulating Your Value class. After 28 years in real estate I’ve had more than a few ‘why should we hire you’ and ‘why should we pay you’ conversations. In prepping for the class, I’ve also talked to a lot of agents, owners and managers to see…

Read More

Embrace The Plot Twist

April 19, 2024

Ever have those moments when your well laid out plans and carefully crafted intentions get knocked off track? The seller who half way through prepping their house decides it’s not the right time to move. The buyer who writes 3 offers that don’t get accepted and then gets a new job –  out of state.…

Read More

It’s Your Responsibility To Shine Bright

April 12, 2024

Because when you do, you light up the world. I saw this quote on instagram and it seemed perfect for today’s post. A beautiful reminder that it is okay to be the shiniest version of ourselves. Not only is it okay, the world is better for it. I started a series on social media this…

Read More

What Comes First – Energy or Mindset?

April 5, 2024

They aren’t the same thing. Mindset is just that – working to change your thoughts, which is turns out is pretty difficult. Your mind is powerful. And yes, you can use your mind to think different thoughts and change your outcome. But at its core, your mind is wired to keep you safe, which it…

Read More

Don’t Confuse Negotiable with Charging What Your Worth

March 29, 2024

There has been a lot of confusion about what negotiable means lately. Fees are negotiable, your value is not. Fees have always been negotiable. Clients have the ability to choose agents based on the fee they charge, because not everyone charges the same thing. You have the ability to negotiate your fee, if you so…

Read More

Don’t Let Fear Get In The Way – Do The Thing, Take The Action

March 8, 2024

If you’ve been following along with the Secrets To Attracting Clients Masterclass Series, you know it’s been a big week. If you haven’t been – why not? It’s amazing, and it’s FREE through next Wednesday. So it’s not too late to join the fun. If you are new around here, Friday’s is when I send…

Read More

The Stories We Tell Ourselves

March 1, 2024

We all have stories we tell ourselves. Stories that affect our actions and decisions. We view them as facts, but in reality – they are just a story that we chose to believe. I’ve had a lot of conversations about stories this week and how our stories determine what shows up in our lives. And…

Read More

Because Together We All Get Better

February 23, 2024

I saw a funny meme on Instagram this week portraying the real life vs insta life version of being an agent. The instagram version showed a group of agents eating lunch together in designer clothes at a beautiful cafe. Versus the real life agent sitting alone, on the steps of a vacant house, eating a…

Read More