It’s about working smarter and not working harder.
Here are 3 ways to put more profits in your pocket without doing more deals and killing yourself to do it.
1 Sell Higher Priced Homes
It seems obvious but if you can add another farm area of higher priced homes then you will take more money home with your per deal. By consciously adding higher valued homes to our portfolio will not only earn us more money but establish us as Real Estate Agents that can handle bigger deals! Most new agents wont take higher priced homes just because of their lack of experience. What they fail to realize is they have lots of support from their office.
They can call on their Manager as well as other Top Agents in their office. They may even have a coach or sales training they can tap into for advice. The point is they don’t have to avoid moving into an area that demands higher prices.
The difference in selling commission for a home at $300,000 paying 2.5% or a home selling at $400,000 is $2500 more per deal! How much more would you have made last year with an extra $2500 per deal in your pocket?
Remember, it is not harder to sell the higher priced home, it’s just a different product. By moving into an area where the house prices are a little higher, could put considerable money in your pocket by year end!
2 Get Trained in Commission Handling!
By handling commission objections better, you will take home more money by getting paid what you are worth. The difference of 1% on a $300,000 home is a whopping $3,000! If for example you listed and sold 10 homes last year and got properly trained on commission handling, you would put an extra $30,000 in your pocket this coming year! That’s more than many people make all year!
Being open to proper training is key to your success as you grow as a REALTOR®. You should always be looking for new ideas that you can use in Marketing, Branding, Sales and Technology. There have been many changes in marketing over the last few years spurred on by new Technology. Have you started learning some new strategies?
3 Reduce Your Expenses
It costs quite a bit of money to be a REALTOR®. Clients often expect their home to be in the paper and magazines. Gas prices are high, phone bills and insurance fees. Board fees and on and on.
If we could cut our expenses down, that would directly affect our bottom line. Many agents do a review of their expenses each year to see which marketing funds are working and which are not. By doing this review yearly we can save money on our next years expenses. For some of us, this can have a dramatic affect on our bottom lines!
If we are currently running at an expense rate of 40% and could trim that down to 35% or even 30%, that could have a dramatic affect on our yearly profit! Keep in mind that expenses directly affect your bottom line. If you can keep daily expenses under control then you are well on your way to building a solid Real Estate Foundation.
Honestly, at the end of the day, if you want to make more money then you need to show more Value. Agents that consistently provide better value earn more money year in and year out. Referrals come easy to Top Value Providers. When you provide the best value that you can, people talk about their experiences! They want to tell their friends about the service you provided for them.
Have a great day!
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