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
Signup to receive Nicole's blog posts via email weekly:
Other Posts
What If Everything is An Experiment?
I’ll admit it, I’m not great at asking for help. Even when I know I need it. There are a variety of reason I struggle with asking: I’m busy and taking a step back to asses what I can outsource feels like one more task I don’t have time for. The task is something I’m…
Read MoreDon’t Believe The Hype
Does the market make you want to hide out? I’ve had SEVERAL calls from agents recently with clients that are putting them through the wringer. Whether it’s sellers not accepting offers, buyers taking forever to make decisions, or clients doing the exact opposite of what you thought they were going to do – managing your…
Read MoreThe #1 Reason Clients Don’t Choose You
Don Miguel Ruiz said it best in his book – The 4 Agreements: Don’t Make Assumptions Find the courage to ask questions Communicate with others as clearly as you can This one agreement can completely transform your life Beautifully said. Assumptions are the #1 reason your clients don’t choose you. As agents we assume many…
Read MoreLetter to My Younger Self
Today is my birthday. For me, birthdays are a beautiful mix of celebration, anticipation and reflection. This post is dedicated to reflections. Things I wish I could tell my younger self. Imposter syndrome is normal! You’ve spent so much time doubting yourself. Feeling like everyone else knows what they are doing while you’re still trying…
Read MoreManaging the Adrenaline / Emotional Roller Coaster of Real Estate
Closings, getting mutual on a contract, receiving a referral – there are lots of wins in real estate. Each one brings a shot of adrenaline that feels amazing. However, those moments are often short lived, with a lot of space in between. If you aren’t careful that space can fill with self doubt, insecurity or…
Read MoreWhy Proving Yourself Is A Bad Idea
I competed on a listing this week that I didn’t get. It was a great one too – awesome house, great clients. It was one I really wanted. When I got done pouting I took a few minutes to ask myself, ‘where did it go wrong’? Our first appointment was amazing! The second one, not…
Read MoreThe Secret To Success: How Awareness Transforms Everything
‘The first step towards change is awareness. The second step is acceptance. Let us not look back in anger, nor forward in fear, but around in awareness.’ – Source Unknown Last week focused on letting go of the need to play catch up. The only thing that matters is focusing on the present moment. The…
Read MoreDon’t Try To Catch Up – Just Start Where You Are
I’ve spent the last few days in Virginia at my favorite real estate conference, Genuine Hustle, where I had the honor of presenting a session on asking powerful questions. It’s the most authentic, vulnerable, supportive and all around amazing group of agents that I’ve ever spent time with. They haven’t released the location or dates…
Read MoreThis Phone Call Brings In The Most Referrals
Can calls really translate into referrals? Are some more effective than others? When we work with clients it’s easy to go into ‘get it done’ mode. We focus on getting from contract to closing as quickly and smoothly as possible. And to be fair, that’s a big part of what our clients hire us to…
Read MoreWhat if EVERYTHING is Working Out For You?
What happens when you have a ‘set back’ ? Does it send you into a tail spin of fear and insecurity? Do you brush it off and move on? Or – Do you view it as confirmation that you ARE on the right path, realize it wasn’t the right opportunity or situation for you, and…
Read More