Mid-Year Evaluation (Part 3)

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!