If you work in the real estate industry, you’re familiar with the fast-paced work environment. Agents need to work quickly and accurately, while managing both internal and external expectations. And that it’s not an easy task.
In this blog article we explain four tips that will help real estate agents manage their business better and increase their profitability.
1. Find your niche
The most successful real estate agents typically aren’t jacks of all trades. They have a specialty or a niche. This is important because when you become an expert in a specific area, you will know much more about that area than the generalists do, which will give you a competitive advantage.
Your niche in real estate can also be a marketing tool because you will be able to market yourself as a [real estate niche here] expert. This is because you have more knowledge and sales experience in that field and clients won’t choose you just because you’re a licensed real estate agent. When you become an expert in a specific area in real estate, you will convince them that you know exactly what they need to find a home or sell one.
2. Study your numbers
Know your numbers by looking at profit and loss statements for both your business and personal expenses.
If you don’t have profit and loss statements, you should hire a booker to help you create them. The P&L statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period.
3. Manage expenses
Generating revenue is important, but managing your expenses is key for the future of your business.
You should know where your money is going. To do this, check your bank statements. In this way you will be able to know about every service and tool that you are paying, and if not necessary you can cancel it on time.
For your first years in real estate, it is also important to be mindful of your taxes. You should try to operate off of 50% of every commission check. Ideally, 50% of every commission check should be put away and any extra money should be invested back to your business.
You can also use technology to help you manage your expenses. Mobile apps and cloud software can be used to make things easier.
For example, get an receipt app. With this app you just take a photo of it on your phone and then the app will save the details to your general ledger.
You can also get an cloud document storage and finally get rid of the filing cabinet. You can store your documents in the cloud so they are out of the way and easily accessible.
4. Raise the sales price
When you're selling a house, you and the home owner will find the perfect price for your listing. But there are times where you may want to consider raising the price after you've already put a house on the market.
For example, if you're getting flooded with several offers and each one is more than list price, this could also be a good chance to rethink your price. So, rather than immediately making counteroffers, you could raise the sales price and see which buyer is willing to go the highest.
Raising the sales price would affect your bottom line and in this way increase your profitability.