Archive for June, 2013

Statistics and Ratios – How can they help your Real Estate Career?

During my 14 year Real Estate Career I have always set and reviewed goals that I’ve targeted generally at the beginning of the year and what I have found to have helped me is the use of statistics, ratios and even graphs to track my progress. This has also enabled me to get a handle on how I have procured appraisals and listings in particular. There are certainly some negatives with being too statistical in your approach.  At the end of the day there is nothing quite like getting the job done and actually doing something. (As that great Hawthorn Football Club Premiership Coach John Kennedy would say, ‘Don’t think. DO!)

With any great project comes planning and with any important plan you need information at your disposal and one or many objectives that you would like to achieve. I know there is a statistic that says that only 3% of the population have written goals and therefore the other 97% of the population are merely wishing but let’s delve a bit deeper into what the 3% can do to become the 1% or even .5% of the population.  After all a job worth doing is not only worth doing well but brilliantly I say! So the question becomes. If only 3% of the population set goals then what % of the 3% actually perform study around their goals in order to improve them? And, do we know where our results are coming from?

I can’t say that I’ve always done this but recently I decided to create a graph of all my sales in my patch, farming area or territory (or whatever you prefer to call it) My reasons behind this was that I was curious to analyse how I had met the 57 sellers that are now my past sellers and from this I went on to graph the change in median price in this territory of approximately 1500 homes. The information generated has made me feel far more confident in presenting listing presentation in my area and I hope this has taken me a bit closer to becoming the trusted advisor for the Oatlands Estate in  Narre Warren. It shows that the median house price sale till the end of March 2013 is $361,000 according to realestate.com.au current data. My data as seen in the graph below shows that the latest median price generated from combining all of my sales for the year so far is running at $466,300 and over the last 5 years inclusive of all 57 sales the median runs at $380,800.

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These statistics are very important if my main objective of becoming the trusted advisor in the area is to be realised. I already feel more confident when I go into a listing appointment, especially within this my territory as I am coming from an angle of experience gained over the last 5 years. I’m sure that there are indeed components of this data that can be improved upon but for now it shortens my preparation time because the majority of sales information relating to the area has already been captured.

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Knowing your main KPI’s-

There is a brutal honesty that comes with knowing your statistics it’s a situation that you can choose to either hide from or to ultimately analyse and improve upon. Each year I track each and every appraisal that I do in an excel spread sheet. So far this year I’ve been able to compile the following information about myself and my results;

  • Appraisals from Jan 1st 2013 till May 15th 2013 = 91
  • Listings till May 15th 2013= 32
  • Appraise to list ratio = 35.16%
  • Sold till May 15th 2013 =15
  • List to sell ratio = 46.88%
  • Sold own listings = 9 out of 15 = 60%

I don’t track sales data as vigorously as I believe that listings are the lifeblood of my business and as such if I am able to list enough saleable property that my goals and objectives become so much easier to reach.

Some people may look at the aforementioned ratios and information and draw a total different conclusion to what I would. The same goes for you and your goals, and at the end of the day it only really matters what the data means to you and what you think you can do with it. For instance 1 conclusion that I draw is that I am doing a lot of preparation appointments instead of listing appointments as I certainly don’t mind meeting up with my prospective vendors 1, 2 or more times before they are ready to come to the market proper. Certainly I’d like to organise a higher % of ready to go listing appointments but just so long as it doesn’t compromise my relationships negatively.

Then, further to this study I have tracked where my appraisals have come from so far this year. This in turn will allow me to focus on prospecting methods that appear to be more effective for me going forward. The graph below indicates the data;

 

 

It will be interesting to do an analysis of this data and compare January – June 2013 with July – December 2013. One of my main objective leading into the 2nd half of the year is to really focus my efforts into my territory in Oatlands and to do regular Direct Mail letters and sold result emails to all of my contacts in the Oatlands Estate that have furnished me with an email address. Fortunately obtaining email addresses has been a strong focus of mine it is all implementing what I know works well. In other words; I will take Mr Kennedy at his word and actually DO!