Numbers Worth Knowing
Lately I have been working with a lot of numbers and I have been reminded of their power.
While numbers themselves are non-emotional, often they bring up a lot of emotion and therefore, are sometimes avoided. Anyone who has ever not opened their credit card statement or avoided revisiting their commission statements knows exactly what I am talking about.
But numbers can also bring great joy! I was reminded of this just this week when not one but two of my clients shared with me that they had reached their commission and transaction goals for the year. These were two agents who had a specific goal in mind for quite some time and had been striving tirelessly to get there. Because they had those particular numbers in their head, they could visualize getting there, making it easier to make one more phone call, tour one more home, write one more offer. When you can see the light at the end of the tunnel, the tunnel doesn't seem as long.
Numbers are the facts in your story. Another client recently remarked when discussing the latest pending numbers from her MLS that she knew in her gut that there was one main price point in her market that was lingering. Meanwhile everything else was quickly selling from the market. Knowing how many pendings and days-on-market numbers for each price range within her market gives her confidence. Now armed with actual numbers instead of just a gut feeling, she could go back to her sellers and present this information and be strong if a price reduction becomes needed.
Numbers are powerful! But only if you take the time to really look for the information!
Tackle just one of the following categories and I promise you will feel empowered by the numbers you find!
In fact, I am going to give you a cornucopia of tools to help.
- Agent Review: This document will help you track your activity (listings, pendings, and sales) month by month for the last three years. The graphs will update automatically based on the information you enter.
- Your personal days on market versus the MLS
- Your personal list to sales price ratio versus the MLS
Agents, these last two numbers can be very powerful when used during a listing presentation, especially if you are being challenged to cut your commission!
- Net Worth Analysis: This document will help you see where you really are in terms of your equity and debt. When you start to look at paying your bills as earning worth, you may be surprised at the results!
- Money In Money Out: If you are looking to create a budget, start with this document. Track your money-in and money-out for the last six months. This can be used for both personal and business.
- Track your business expenses per month for 2016 (yes, before your tax deadline)
LOCAL REAL ESTATE MARKET
- Determine Where the Fish are Biting at price points in your market
- Determine appreciation rates in your market for the last ten years
- Track median home prices by month for the last 12 months
- Track days on market numbers by month for the last 12 months
- Track housing starts or building permits by month for the last 12 months
- Calculate absorption rates for the last 12 months
- Track commercial closings for the last 5 years
- If you are considering a geographical farm, be sure to take a good look at the numbers first with our Finding the Right Geographical Farm document before you start your campaign.
- Track unemployment rates in your area for the last 36 months
- Track population growth for the last 36-120 months
Numbers are power in your back pocket. When you know your numbers it will not only give you confidence, but you will be able to make better decisions when you are informed. Real estate can be stressful enough, knowing your numbers is one place where you can find some peace of mind.
By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.