How Well Do You Know Your Numbers?

Getting the income you want in our industry means knowing your numbers. Here are the numbers you need to know and track as an agent.

Looking to improve your real estate career? I'm here to help you make a smart decision when it comes to growing your business, improving your bottom line, and choosing a place to work in real estate sales. If you'd like to learn more about working with Clancy Real Estate, contact me at (518)861-7016 or Kevin@ClancyRealEstate.com.

In the real estate world, it’s very important that you know your numbers. Let me tell you about a couple phone conversations I had recently that illustrate this point. 

The first conversation was with a friend in another market. When I asked him how 2016 went for him, he told me he sold 200 homes and made $900,000. It was then that I had to break it to him that he didn’t actually make $900,000. That was just his gross. I then found out that he really didn’t know what his net income was or what his expenses were. In other words, he didn’t know what was working for him because he wasn’t tracking his numbers. 

The second conversation was with an agent who was thinking about joining our team. The first question he asked me was, “What’s your split?” That was a bad sign. There are a number of other questions he should’ve asked me before that one, such as:

1. What systems do you have?
2. How many leads do you have?
3. What’s your average call ratio to the number of conversion ratios?
4. Can I make $200,000 a year (which is what I want to make) with your systems, processes, and structure?

Don’t get me wrong—the split is important, but if I can get you $200,000 on a 40-hour work week, the split doesn’t matter. 

In our industry, we tend to focus too much on the number of transaction we make. A mega-agent can brag about selling 8 million homes, but at the end of the day, their net might’ve been better if they were an individual agent with an assistant. 

In 2017, my firm has started doing real-time tracking of the number of calls we make, our number of contacts, and the number of showings it takes to get a contract. All of these numbers are broadcasted on a 48-inch TV in my office so everyone can see them. These are the numbers that matter because they’re the ones that get you to your net income. 

In 2017, if you don’t do anything else, know your numbers. Know your numbers in the market, know the median home price, and know the average days on market. More importantly, know how many contacts you need to make to get the income you want. 

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If you don’t do anything else in 2017, know your numbers.

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If you’re not making $150,000 or $200,000 a year and you want to get there, please call me. I have agents on my team who were out three months last year and still made $180,000. I’d love to grab a cup of coffee and tell you more about the great things my team is doing this year. I look forward to hearing from you!