Commercial real estate has a lot of different control factors which impact the daily operations of a given office. While staff are out on viewings or plugged into the phone system all day, tracking the below metrics will keep you on top of your figures.
1. Commission: When measuring commission as a KPI, you need to monitor both the percentage you get from the sale of a property and what the agent makes from that sale. It relates to how well the property was priced and should give an indication of the selling climate in the area.
2. Number of properties advertised by agent: Before we start, don’t just look at your number. How are your competitors doing? This is an important benchmark when you review your figures. The number of listings you have is nearly always a direct result of marketing efforts.
3. Number of days property is on the market: If there’s a sale that doesn’t conform to the trend, is it because you’ve overpriced the property? Or it might work to identify the market taking a downturn.
4. % difference between asking and selling price: Such a volatile industry does dictate that this % will peak and trough, but that’s not necessarily a bad thing. A key factor to remember is the lower this % comes in at, the higher the ROI for real estate agents. Track this seasonally and over time so you can view year v year comparison.
Visit our KPI Library, which will give you a little inspiration for running your business to its optimum.