Monthly Archives: June 2018

Mid-Year Evaluation (Part 4)

“If you want to go fast, go alone. If you want to go far, you need a team.”

– John Wooden

Let’s discuss strength-building this week!  It’s all about technique, best practices, habits and most of all…follow up!

As we retrieve the 2018 Business Plan, check where we are and evaluate what we need more/less of, slow down to speed up and take business to the next level, listed below are a few key steps to take, areas to assess and questions to have answered:

1. Technique: Tools, Resources and Benefits:
   Are you tapping into the power of what your office (brand) provides for you?
   We are often shocked and saddened by the powerful resources, tools and benefits provided to “members” (Including Brokers/Managers and Agents) by their leadership, brand and office that remain untapped.  So often, the most powerful tools in the industry are hiding in plain site, right under your nose.
   A.  Inquire.  Find out what you have available and discern if it is right for you and your business model.
   B.  Seek to understand what is being provided and the best person available to help you to understand how these resources will make a difference in your business practice.
   C.  Identify the individual for each resource provided and understand how they use it to maximize the potential and it’s benefits to your business. Model their success.
2. Best Practices and Habits:
   Have you sharpened the saw? Now is the time to evaluate each system and practice that you engage in and streamline to best support your model and goals.
   A.  As you pause to evaluate and build your strength (as we discussed in last week’s Blog entry) remember to evaluate the source of each sale.
   i.   What is the ROI on each?
   ii.  Where do you need to invest more/less time, talent and energy?
   B.  Now the heartbreaking part of the exercise; evaluate how many transactions potentially fell through the cracks.
   i.  What action could have been taken to ensure you managed your time better to respond to leads timely enough to secure the transaction?
   ii.  What non-income activities can be leveraged in order to ensure you manage your income producing tasks more effectively?
   iii.  What activities do you “catch” yourself doing that are hindering your production?
   C.  Leverage:
   It’s impossible to know what to give away until you have identified what you do.
   So simply, make a list.  Make a list of everything you do—in writing, in detail and then determine:
   i.  What do you need to start doing each day for greater success?
   ii.  What do you need to stop doing each day for greater success?
   iii.  What tasks may be “given away” and not taken back to better position you for greater success?
   iv.  Consider your resources:
   1)  On-site Licensed or un-licensed assistant (assistance)
   2)  Fiverr.com
   3)  Upwork.com
   v.  After discernment and evaluation; give it away and move towards greater production, profitability and life/work balance.
3. Looking Back to Move Ahead:
   First, understand there are two steps in the “follow up” discussion and one should not be confused with the other…and in our opinion, this is the most critical of all steps in this process:
   A.  Reflection:
   i.  The art of looking a “back” and evaluating:
   1)  What is working? What is not working?
   2)  What do we need more of? What do we need less of?
   3)  How are the members of the team “performing”?
   a)  Are appropriate expectations being set?
   b)  How is communication between all parties?
   c)  Is the appropriate “space” being provided?
   (1)  Avoid micro-managing
   (2)  Avoid macro-managing
   ii.  Has the appropriate training/education been provided?
   1)  Are there checks and balances in place
   2)  Are we providing what is needed today and for the future of the industry
   B.  Follow Up:
   i.  Master the follow-up:
   Every emotion surfaces during this conversation.  More business is lost with lack of follow up than any other activity in our industry.
   1)  What practices do you have in place to ensure that you are following up with each lead in a timely manner?
   2)  What is your check and balance?
   ii.  Who is your accountability partner?
   Coach Wooden understands that to “go far” you need to power of the pack or tribe. You need a Chief, a Coach or a Business Manager. As you move forward to finish the year strong, who is yours?
   1)  Broker/Manager
   2)  Coach

Slowing a bit at mid-year and evaluating your performance and production numbers will speed your business up and ensure you have the best 2^nd half ever!

Be a resource, not a sales pitch!

Mid-Year Evaluation (Part 3)

“If you want to go fast, go alone. If you want to go far, you need a team.”

– John Wooden

This week is dedicated to setting aside time to “Know your Numbers.”  I know…. arghh!

Math, right?

So, here is the great thing if numbers and stats are not your strength.  For what we need, we can tap into our resources and allow others to support us for accuracy and understanding. AND please, reach out and lean into a resource. This is too important to skip and ignore!!!

The information that we need is both simple and significant in our objective to pause, evaluate and finish 2018 with the best results possible. Here’s the information needed and how to use it to serve your business plan:

1. How’s the market?
   What is the market providing year-over-year (Jan-June 2017 vs. Jan-June 2018)?

   We would be shocked if your Broker/Manager cannot provide this information for you.  In addition to bouncing this off your business plan, it’s critical data for you to have to incorporate in listing and buyer presentations.  You may also want to explore:
   a.  Absorption rate of inventory
   b.  Inventory status (depleted or pent)
   c.  Average Sales Price
   d.  Average Days on Market

2. How are you performing in this market?
   How do you compare year-over-year (Jan-June 2017 vs. Jan-June 2018)?

   This is the most revealing aspect of this exercise.  It provides specific insight into what is working and what is not.
   a.  Listing Stats
   1)  # Listing appointments
   2)  # Listings agreements signed
   3)  # Listings active
   4)  # Listings Pending/Sold
   5)  Personal listing inventory evaluation (depleted/pent)
   6)  Average Days on the Market
   7)  Commission
   b.  Buyer Stats
   1)  # Buyer prospects
   2)  # Buyer agreements signed
   3)  # Buyers Under Contract/Sold
   c.  Average Sales Price
   d.  Pipeline—Who’s next?

3. Comparison of the market vs. your personal performance
   a.  What is the market’s pull or push vs your performance? If the market is up 5% and your production is up 10%, you are out performing the market by 5%. Now that is noteworthy for both Listing and Buyer Presentations. Likewise, if the market is up 5% and you are up 4%…you are behind.  Now that is not only noteworthy, it should compel you to dive into a deeper evaluation of what you need more of and what you need less of!
   b.  Also compare/evaluate year-over-year transaction count and know if you are ahead or behind.
   Appreciation (higher average sales price) introduces confusion in the numbers because your earnings may reflect greater success than you are experiencing. Don’t be deceived!

You simply can’t dig too deeply on this exercise.  Our market is providing great opportunity to keep your head down, move to the next transaction and not truly know where you are and how you are performing.  What is working and what is not…

As an example, strong listing professionals may be disillusioned in this market due to the rate of inventory going from active to pending in record time with multiple offers.  Many have stacked pending inventory vs. active.  This is why you must pull it all apart to ensure you know your strengths and weaknesses.  Avoid allowing the market to impact your mindset and/or outlook.

And in a final attempt to encourage the pause…don’t allow not knowing where you are to create the trap of negotiating your commission.  Stop. It. Now.  You are worth 10% (at least), for heaven’s sake, charge 6.  Do not allow this chaotic market combined with not truly knowing where you are (in your production numbers) to influence your decision-making process and encourage discounting your value.

Slowing a bit at mid-year and evaluating your performance and production numbers will speed your business up and ensure you have the best 2^nd half ever!

Be a resource, not a sales pitch!

Mid-Year Evaluation (Part 2)

“If you want to go fast, go alone. If you want to go far, you need a team.”

– John Wooden

So here is what we’ve decided! We want to be your Team!  The next series of blogs are designed to support you in the mid-year pause and provide a weekly guide (in June) of just what that looks like. Here is the overview:

1. Evaluate the Source of Sale:
2. Know your Numbers:
3. Evaluate Follow-up Practices and Habits:
4. Strengthen Your Bench

This week is dedicated to setting aside time to “Evaluate the Source of the Sale.”  When we do that, we truly pause to look at each closed transaction and physically record the source from which the lead came.

The reason this is so important is that we constantly hear very generalized statements from Agents as to where the business came from…sometimes they truly know the source, yet often there are assumptions made and once this exercise is complete, tremendous insight is gained and growth occurs.

So, in this exercise, it’s imperative to get really granular.  What that means is to create very specific, granular categories and drill into each transaction closed. Those of you who know me know that I truly have a simple mind. Therefore, my recommendation is to simply make columns on a sheet of paper (or Excel spreadsheet if you are feeling fancy) and then branch from each.  As an example, should the source of sale be “sphere”, define who, what and how.  You might have the category of “Sphere” with branches to include school/church/kid’s education/recreational activities/Yoga class/Gym/Book Club…etc.  Again, drill down on each lead to define the source.

This is how we determine what we need more of and what we need less of.  As an example, if 1% of your business is coming from paid lead-gen systems, although trendy, paying for leads may not be the best spend of your time, energy and money.  The most efficient and effective way to grow the business is by identifying who and what is feeding your transaction count and who and what needs more of your time, energy and financial attention.  And make the adjustment!  Now!

Upon completion of this exercise, we have three great opportunities:

1. Determine what shift is needed. Your opportunity becomes quantifiable. After fully pulling this part of your business apart, you can determine the KPI on each resource.
   a.  Financial
   b.  Time
   c.  Energy
2. Evaluate what business was lost. This one gets personal and takes courage.  As you look at each category, think honestly about how many opportunities you neglected to follow-up appropriately on.  No judgement. Only curiosity. THIS is when growth takes off!
3. STOP and celebrate those who are supporting your business. Once you’ve identified referral resources…take a moment to celebrate each and show gratitude.

Slowing a bit at mid-year may speed your business up and ensure you have the best 2^nd half ever!

Be a resource, not a sales pitch!

Mid-Year Evaluation

“If you want to go fast, go alone. If you want to go far, you need a team.”

– John Wooden

By far, John Wooden is one of my favorite coaching influencers. Although he coached in a very different time and climate, his techniques, works and words were magic and live on today impacting and touching lives beyond the sports world.

2018 has been a whirl-wind for the real estate industry with depleted inventory, multiple offers, and all other opportunities provided by the chaotic pace we are experiencing.  Stop. Mid -year = Halftime.

Pause for mid-year evaluation and make the adjustments needed.  Most will agree the pace of the market is shifting and the industry is changing.  Change (I refuse to say disruption) brings opportunity.  In order to maximize the opportunity you are facing, we must reflect on where we have been and make the appropriate adjustments:

1. Evaluate the Source of Sale:
   a.  Where is your business coming from?
   b.  What do you need more of?
   c.  What do you need less of?
2. Know your numbers:
   a.  What percentage are you up/down year-over-year?
   b.  What percentage is the market up/down year-over-year?
   c.  Where are you compared to the market?
3. Know your budget:
   a.  What is the ROI on each expenditure?
   b.  What adjustments need to be made?
4. Evaluate Follow up practices and habits:
   a.  Determine what business was lost due to lack of follow-up
   b.  How do you need to strengthen your bench and leverage tasks to ensure effective, efficient follow up?
5. Strengthen Your Bench
   a.  Administrative Assistance
   b.  Referral Network
   c.  Coach

The game of real estate has vastly resembled the NBA Finals this year… although the teams and players are familiar, the pace has been fast, yet precise; the results have been exciting, yet not as predictable.  To me this sounds a lot like the chaotic real estate market of 2018.  Agreed?

Now what we want to avoid is getting caught in the final seconds of the game and not being sure of the score…taking too much time to walk off a play when we should be taking the ball to the basket.  If you are not a basketball fan, you might not understand this…if you are, you do.

Coach Wooden’s wisdom is well worth repeating: (And someone needs to share his words with the Cavaliers) “If you want to go fast, go alone. If you want to go far, you need a team.”

If you want to go far and finish well in 2018, practice the pause, know your business and build your bench.  You will go much further with the support you need.

Always available to be a resource, not a sales pitch!