When it comes to working in property and real estate, there is no point in being a specialist in selling multi-million dollar homes in your area, if only two homes in that price bracket are sold every year, what are the chances of you selling them? Let’s say that you did sell them; what commission would you make? What if most houses in your area sold for between $400k and $500k, and you sold 20 of them instead? Where do you think you would make more money? Makes you think, doesn’t it…
You need to do the numbers and work out where you should focus your time and effort in listings. By working out what percentage of sales each year are made in each price bracket, and in each property type (i.e. houses, units, land, etc.), will allow you to see clearly where you should be listing. Find that niche, and you can focus your efforts to become a specialist in those brackets. Or worst case, have your listing portfolio match what sells in your local market.
For example, if 40 percent of houses that sell are between the $350k and $500k price bracket, as a realtor you will need to make sure that 40 percent of your listings are in that bracket also. If you want to make the most money you can, the wise decision would be to operate in the bracket of where the most property turnover is.
There are factors within each market and sales team to be realised; take them into account if you are to succeed. Do not work blind! Become aware of your local market and the competitive advantages it can provide.
Below are helpful takeaways for you to consider, to help make your market analysis a little bit easier. You need to investigate and research:
- Local property market turnover
- Number of houses in each price bracket
- Number of sales every month in each price bracket
- Median sale price
- Difference between listing price and sale price
- Your average commission on listing price and sale price
- Average time it takes to sell a home in your local market
- Number of agents in your local market
- Number of listings in your local market
- Change in market over the last three months
- Change in market over the last twelve months
If you can analyse and have an answer for each of these points it is a great starting point into dissecting the market.
Over time as the market continues to grow, it can get a little overwhelming. Aro Software has the unique ability to categorise and analyse your local property market. It’s real estate software that works the way you do, to make time and resource management more efficient. For more information on how Aro can help you mine the full potential of your local market, contact us today.