Don't do it alone!!
Hi folks. I recently read an article from an agent talking about his difficulties with getting transactions closed. He mentioned he was losing 1 and 4 transactions before they made it to the closing table.
A 25% closing percentage is enough to put any of us in the poor house!!! BUT....if we know our closing percentage is 25% we can find a solution.
The solution is to have more pendings!! It impossible to control all aspects of a real estate transaction but we can control the amount of deals we are closing. If you know only 1 in 4 will close and you need 5 closings per month then you need to have 20 pending transactions at all time. Now you just need to figure out how to get to 20 pendings. Once you are there you just have to replace 5 a month.
Right now in my market I need to have close to 25 pending transactions in order to close 5-7 a month.
Numbers can be predicted with great accuracy. If your area does not have enough closings for you to hit your number then you have to expand your area. I work listings as far as 200 miles away to be able to hit my numbers. Mostly because I needed a higher price per sale.
My market area has an average price of $65,000 yet my personal average is $125,000. By extending outward I was able to double my average price and therefore double my income.
In Real Estate sales there are basically 3 ways to increase income.
Close more transactions.
Charge more for your services.
Increase your average sales price.
Let’s break these down a little further.
Close more transactions by adding...
Increase marketing to increase listings
Branch out into buyer and/or listing sides
Charge more for your services by...
Increasing your commission percentage
Increasing your split
Charging transaction fees
Charge a marketing fee upfront
Increase your average sales price by....
Expanding into new areas
Adding commercial deals
Being more selective
You could also find another source of income that’s related to real estate.
Do clean outs
Sell your real estate knowledge
Bird dog for or partner with investors
The bottom line is that if what you are doing is not working quit blaming outside forces and take control of your own destiny. I’ve been doing this for going on 20 years now and there has NEVER been more opportunities to make money in Real Estate than there are right now.
BUT..... you MUST jump out of your box and go get it. Will you?