In commercial real estate brokerage, most successful sales people must play the ‘numbers game’ when it comes to new business and market share. Without an awareness of the right numbers and just where they are headed, any opportunity for growth can be overlooked or not captured by the agent.
So what are the numbers to be tracked? Here are a few of the important ones:
- The size of the real estate market – every sales person should understand just how big their market is and how they are positioned within it. That assessment will include the numbers of properties, numbers of businesses, and the historic sales and leasing records over the last couple of years. From those facts they can assess just how they can improve with more market share.
- The number of competing agents and brokers – every town or city will have competing agents in differing segments. Some of those agents will be better than others. There will also be specialisation factors that make some agents dominant in a market segment.
- Prices and rents – during the year there will be fluctuations in price and rent. That will occur across property types and in zones within the town or city. Every agent must know how the prices and rents for property deals are trending.
- Current listings – the other local properties should be watched for time on market, marketing method, success or failure, and enquiry rates. Some properties will be more ‘popular’ than others. Quality properties will always attract more enquiries. Exclusive listings will help you with market share; you should control your listing stock wherever possible.
- Internet listings – a lot of enquiry today is generated from the internet. On that basis it is necessary to track online listing numbers by agent and brokerage. It is best to do that on a Saturday when other things are less pressing in time. You can also visit those properties to see if they are of relevance to your market activities.
- Commissions and conversions – all top sales people and brokers should be tracking their personal commissions and conversions. They should understand how their market is improving or expanding. Those numbers can be compared to the local averages and the other brokers.
- Numbers of signboards – the traditional signboard is still highly effective as a marketing tool. The greater number of boards that you have placed in your sales territory, the better your enquiry rates will be. That fact being said, focus on signboards on exclusive listings at all times; control your stock and your market.
So this information will help a broker or agent with self-improvement and market development. Some would say that it takes time to track these things, and they would be right, however progress in any sales role takes understanding and tracking. That’s what this is all about.