What is your Average HPT (Hours Per Transaction)?

Mortgage and Lending with Alterra Home Loans

What is your Average HPT?  We have all seen the formulas - and many of us use them every year in our business plan - to calculate how many transactions we need to close in order to achieve our income goal for the year.  What I haven't seen is anything that breaks down the number of hours we spend on our transactions.  On Saturday while I was on my 76 mile training ride, I thought about efficiency and how many more deals we could all do in the same amount of time if we had systems to decrease the amount the time we spend to close our transactions. 


You probably aleady know your numbers to success relative to your average dollar per transaction and how many transactions you need to close this year to achieve your income goal.  You may very well know your closing ratio and how many appointments you need to set to close that many deals.  If you've really done your planning, you know what marketing you need to do (how many mailers, phone calls, open houses, etc.) in order to generate enough leads to set enough appointments to close enough transactions to achieve your dollar goal.  Let's take it a step further - and for those who have already done this, great job.  Break down the time it takes to do every single activity to close a transaction from each prospecting activity we do, to how long the listing / buyer's presentation is, to how long it takes to enter a listing on the MLS or write up a contract, and so on.  Once that is done, look at each of those activities and see which ones can be automated, which ones can be tweaked to save some time, which ones an assistant can do and which ones are perfect the way they are.


The speedometer tells you how fast your going and in the case of your business, it's how many deals per year (DPY) you are doing.  The tachometer tells you how fast your engine is turning to achieve a given speed; the speed you ultimately achieve is based on factors like aerodynamics, gearing, weight, engine size, compression ratios, suspension and other things including things we can't control like wind and other weather elements.  In business, we want our speedometer reading a big number and our tachometer reading a low number because it means we are running efficiently. 


Car guys like to modify their cars to make them go faster by putting on a low restriction airbox, a racing muffler, headers, a turbo or supercharger, or a high-performance chip.  Business is not unlike a car that could use some performance enhancements.  Look for ways to soup up your business and take advantage of new systems and automation - and a good assistant.  Here is one idea that I have found to help with marketing; it's really an amazing system and I highly recommend it.  Check out the first 12-minute video here:  www.agentsunfairadvantage.com and then watch the 7-minute video here:  www.sellersunfairadvantage.com.  By implementing efficiency strategies, your average HPT should go down which will allow you to increase your TPY (transactions per year) or just give you more time to enjoy yourself.  Please feel free to comment and share your ideas.

Posted by

D. Jed Wunderli

Certified Mortgage Planner

Alterra Home Loans


Comments (2)

Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Hours per transaction varies considerably based on the skills of the players involved...buyer, seller, agents, lender, and type of transaction. These are sometimes a challenge to control!

Jan 10, 2011 02:24 AM
Jed Wunderli
Alterra Home Loans - Las Vegas, NV

Gary - you are absolutely right which is why it's all the more important to have systems to be efficient whenever possible and save the time you can so that when uncontrollable things take more time, you've saved time in other areas to offset this.  Have a great year.

Jan 10, 2011 03:00 AM