Am I reaching my full sales potential as a licensed Realtor?

Understanding whether you’re truly meeting your sales potential in residential real estate can be a bit challenging. There’s no formal barometer or standard to compare your results with. In this post, I want to provide you one perspective – and not the only one!  – to help you evaluate your progress thus far.

Measuring Your Sales Performance

To gauge whether you’re achieving your sales potential, the most direct feedback available to you is simple: are you selling houses? Below is what I believe the right number of closings you should be hitting in the first three years of your career.

Before you read it, remember that there are multiple factors at work that could make it different for you (averages sales price, market dynamics, etc.). I’m also assuming that you are in the business full time and all-in on what you’re doing. All that said, in a balanced market with sales commensurate with the average price point in the market, here’s what agents living up to their sales potential are doing in their firs three years:

1. First Year in Real Estate: The learning curve is steep, and the market challenges can be significant – especially our current one! Closing now less than 8 homes – really 12 – in your first year is a solid target. This range provides a tangible goal while allowing room for the learning and growth that’s crucial in the early stages of your career.

2. Second Year in Real Estate: By now, you’ve gained some experience and have started to build a network. The target should increase to between 18 to 24 homes. This equates to approximately two homes per month, positioning you well for a full-time career in real estate.

3. Third Year and Beyond: The goal is to solidify your presence in the market and increase your transactions further. Aim for at least 30 to 36 homes annually, aligning with the benchmark of selling at least two homes per month.

Assessing Your Current Performance

If you find yourself falling short of these benchmarks, it’s a signal to adjust your strategies. Here are three ways to boost your performance:

1. Increase Activities: More engagement with people about real estate generally leads to more opportunities. Assess your daily activities—are you doing enough to generate new leads? Are you engaging sufficiently with your community and network? How’s your lead follow up game?

2. Acquire More Leads: If organic growth is slower than expected, consider investing in lead generation tools or platforms. This could mean enhancing your online presence, utilizing real estate platforms, or even purchasing leads to expand your potential client base.

3. Evaluate Your Environment: The culture of your workplace can significantly influence your productivity. Are you surrounded by high achievers? Is there a culture of support and success? If not, it might be time to consider a change. Surrounding yourself with motivated, productive individuals can elevate your own performance.

Reflect and Adjust

Remember, real estate is not just about hard sales skills but also about the environment you put yourself in and the mindset you cultivate and maintain. Regularly take time to reflect on your progress and adjust your strategies accordingly. Are you proactive enough? Are the tools and resources at your disposal being fully utilized? How robust is your network?

Critical: Putting Yourself in a Culture of Productivity

Finally, ensure that your work environment fosters growth. Whether it’s through regular training sessions, collaborative meetings, or competitive challenges, staying in a dynamic, goal-oriented environment will keep you motivated and help you reach your full potential.

Next week I will share with you another way to determine if you are living up to your sales potential.

Until then, keep crushing those commissions and cashflow!

Peter Chabris

Lockbox
CEO, The Chabris Group, Cincinnati
Keller Williams Seven Hills Realty