Measuring a Real Estate Firm's Performance

Hi Steve:  I watched the video--good job, by the way--and have to agree that 44% is a great number, pertaining to listings sold in 2007, compared to the other offices in the area. GREAT NUMBER! However, I was waiting to hear the figures on how many agents each company has, because I think that is also as important when doing such an analysis. Maybe not, who knows.I think it would be interesting. I feel it would/does make a difference as far as how many listings are taken and how many are sold, knowing how many Realtors each company has, and include that in your figures. I know for years  CBSRR ran a pretty close race with ReMax--almost neck and neck at times; and BOTH companies have always had the largest amount of Realtors.  CBSRR has always been ahead, is fair to say.

Bottom line....I am impressed that you did a video. I am too camera shy, wish I wasn't.  

Kat,

Historically, we as a company have controlled about 40% of the market... Remax is and has been in the 22% range. 

Number of agents is a contributing factor to taking more listings, but number of agents does not have a lot of bearing of what percentage of the listings taken sell.  In my analysis 44% of the listings taken by our company sold.  This is significantly higher than the other company's in our market and probably higher than most company's.  There are many reasons for this of which I will follow up with an post shortly.

Thanks for watching the video and commenting.  It is great to see that the message can be circulated through this medium.

Have a great day...

Steve:  Didn't mean to strike a match...LOL   Just thought it would be interesting to see all the figures and facts. And, I am sure, CB will still come out on top. OF COURSE!!!       See, here's how I think of it:  Suppose Mr. Dairy Man #1 has only five milking cows (maybe I shouldn't use COWS as an example...LOL) and Mr. Dairy Man # 2 has 30 milking cows.  And so on and so on.   It only makes sense that Mr. Dairy Man with the most milking cows is going to sell the MOST milk. No?   BUT,  then again, I was never good at math. LOL 

  Anyway, I will be looking forward to your next series...

 I LOVED the video--THINK it takes courage! I'm a big coward~

Well, as far as I can see... the number of agents that an office staffs in comparison to the number of listings taken and sold would be a more accurate number to compare.  Also the number of repeat clients might be an interesting topic to look at!  Are the clients receiving top notch service to where they purchase or list with CBSRR again?  Things to ponder... perhaps!

Thanks for the example, but I am not sure we want to use cows as an example.  Your analysis is right if you are talking about numbers of transactions.  I am not comparing number of transactions in my analysis.  I am comparing what percentage of the listings that are taken actually sell.

In the example, If you list with CBSRR, you as a seller on average have a 44% chance of that listing selling, as compared to around 30% for the other companies in our market. 

The number of agents is not relevant in this analysis.

Well, I guess we'll never agree on this one.... Because I THINK AGENTS in an office are a very important part of any analysis.   Regardless, I still am looking forward to your next series. 

This is an interesting video of your sales & listings analogy and those are some great numbers!  It really is interesting information, however I think that the true reality is, sellers and buyers are looking for the agent who is on their side and is looking out for his or her best interest.  It's not necessarily the amount of listings an office can take in and how many they can sell!  I believe at the end of the day, it really is all about which agent will do the most for me, don't you agree?

Thanks for viewing the video.  You are absolutely right, I believe buyers  and sellers are looking for what an individual is going to do for them.  It is my belief that in most cases, the number of listings a firm or agent takes is not a priority for sellers, but sellers are concerned wiith results.  If someone takes 50 listings and sells 1 that is an indication that there may be an issue.  A higher listing to sell ratio is an indication that the agent or firm is performing at a higher level.

My feeling is choose the right firm, then choose the right agent in that firm.  Ask them questions as to how much business they are doing.  One or two deals a year would indicate that an agent may not be an agent that is going to make the sale happen.

In the current market environment, agents and firms need to do more to make sales... think out side the box.

Thanks for your comments.