Momentum in real estate … it’s that almost magical force every agent strives for. When deals are closing effortlessly, buyers are eager, and vendors are all ears, it feels unstoppable. But, as Ray White’s Chief Financial Strategy Officer for Real Estate, Mark McLeod, points out, momentum is fleeting, often slipping away just as quickly as it arrives.
Momentum may not be that so illusive.
What I’m talking about is momentum in real estate.
Every agent at some stage puts themselves into a situation where they go on a tear.
When deals are flowing and buyers are lining up to buy your stock, and vendors are listening and often times as soon as it comes, it disappears.
I’ve looked at a lot of data recently to try understand how momentum is created and why does it disappear.
Of course there are outlier examples of what I can gather and I will explain that momentum comes from a combination of volume and geography.
And the repetitive completion of task in a confined geographical area.
Recently I looked at our network and for those who made 50 sales or more a year, against those who were below this threshold.
The agents who were able to reach the 50 milestone and maintain it often went on to 60, 70, 80+ sales.
And interesting enough those below the 50 threshold often plateaued and faulted after a number of years.
Of course size of a well structured team plays a role however what my research found was as important were listings confined to a geographical area.
Let me explain, an agent who lists in a very wide geographic area doesn’t get the advantage of the layering effect of consistent marketing around listings in a tight geographic area.
They don’t get the effect of having multiple open homes in an area, where in many cases, you will double down meeting locals time, after time, after time.
Of course there are a few agents who work across demographic areas, however, our research shows the enormous benefit of being geographically focused.
Volume is the driver and the more you can move away from being GCI focussed and be volume focused,
I’ve seen this year many agents make quantum leaps forward with their business with this focus. Whether it’s 8mil or 1mil it counts as one.
It is not that challenging to model out what a ‘50, 75, 100 sales’ a year business looks like.
I can guarantee you with having a volume and geographic focus and building a plan towards these two, the GCI will well and truly look after itself.
