Anyone who works in the real estate market, whether managing an agency in the sector or working autonomously, knows that the efficiency to close deals is directly related to the productivity of real estate agents.
To better understand the effectiveness of their team, managers usually count on the help of KPIs (Key Performance Indicators) or performance indicators for brokers. With this, they are able to evaluate each other’s performance and use the right numbers to make strategic decisions.
In today’s post, you will learn a little more about these measures that every broker should follow to make a good management. Follow:
Prospecting is an indicator that accounts for the buyer demand capacity that each broker needs to do individually. The greater the number of contacts (prospects) made by him, the greater the chances of closing deals within this group.
Based on the number of prospects selected by each broker and the quality of the relationship established with them, it is possible to create an index of contacts that have been converted into sales. This indicator is an excellent tool to assess the rejection levels of each agent and to discover their possible origins.
Average visit time
The more agile the broker’s service is, the more productive he can be for the real estate agency. This is because, by saving time with visits, he is available to inspect a larger number of properties, increasing his chances of sales.
Number of proposals
Measuring how many visits have been converted into proposals is, although little used, a way to qualify brokers with regard to the quality and persuasion of their approach. It also helps to get a sense of the number of deals that are about to close and to quantify missed opportunities.
Effectiveness of visits
This is another type of performance indicator selected to measure the broker’s negotiation capacity, as it is related to the visits that were successful, that is: that resulted in some closing of the deal.
The average ticket is one of the performance indicators for most popular brokers in the real estate sector, and is currently adopted by almost all companies in this industry.
To calculate it, it is enough to divide the value derived from the sales of real estate carried out in a given period by the number of agreements closed in that time. The higher the result, the better the quality of the broker’s performance.
Number of active contracts
The greater the number of closed contracts, the greater your revenue as a broker. In addition, the number of clients also tends to increase through referrals and the popularity of their work.
The indices that indicate speed of service, ability to solve problems, number of terminations and other elements that help to measure the level of customer satisfaction are extremely important for your success as a broker. After all, satisfied customers make more profit and recommend your services.
Finally, it is important to remember that none of these performance indicators should be analyzed in isolation. You may not have a very high average ticket value, for example, but be sure to be a good broker because you manage and capture different types of prospects.