- Real Estate
A Predicable Steady Income In Real Estate Sales
If you have listings
In real estate sales your income is fairly predictable if you have listings
If you have listings, a fairly predictable per cent of them will sale every month. Check with your local MLS and determine what per cent of the listings in your town will go under contract in a given month. Once you know that number, the same per cent of yours must go under contract. If 15% of the listing in your MLS go under contract every month, 15% of your listings will also go under contract. Does that make sense?
If you have one listing, fifteen per cent of one is not much. If you have fifty listings, fifteen per cent of fifty is seven. Seven listing turning into pending sales. That will certainly keep the rent paid. How can you get fifty listings?
That is a tough question. The answer starts with your understanding that you need fifty listings, that you want fifty listings, that you can cope with fifty listings. If you believe you don't need fifty listings and you don't want fifty listings and you don't think you can cope with fifty listings, you probably won't be able to get fifty listings.
I never know who is reading these articles. How many listings do you have now? If you have none, I can predict your next month's income. It looks pretty dismal. If you have ten listings, one or two of them will probably sale next month. If two of your listings sale, you have to list two houses next month just to stay even. We don't want to stay even. We want to increase our income by increasing our listing inventory.
We need to take three or maybe four listing per month. That means we have to talk to listing prospects. What are listing prospects? Listing prospects are people that want to sale their house therefore they need a Realtor. If you are not finding many of these people, you need to learn how to find them soon.
Set listing goals. Figure out what an average commission is in your neighborhood. Take your desired income and divide it by the average commission in your neighborhood. That will tell you how many listings you need to have sold to earn the money you want to earn. For instance, if your market's average commission is $2000 and you want to earn $100,000 per year. $100,000 divided by $2000 equals 50 listings. You need fifty listings sold to earn $100,000. That is only one per week. That is not difficult if you work at it.
If you are going to get one person per week to say," Yes I will list with you.", how many prospects will you have to talk to? Lets assume that one out of two says yes. You have to see two prospects to get one listing. Lets assume only one out of three says yes. You will need to talk to three prospects to get one listing.
With just a little bit of personal observation, you can monitor your own performance and know how many prospects you need to talk to to get one listing. If you don't know how to make a perfect presentation to a prospect, when would be a good time to learn? Once you learn it, find a prospect and present it every day at least once.
If you can't make your phone ring, you need to start dialing the phone. You need to start calling prospects. You need to call all your friends, forsalebyowners, expired listings, foreclosure victims. If you are afraid to do that , get over it . Your income is directly proportional to how many prospects you can get to say yes. They are going to say yes to some Realtor. It might as well be you.
Do this right and you are on your way to a wonderful career.