If you want to build and run a successful real estate brokerage, you need to hire the best real estate agents to work with you. The big question is, of course, how do you find these talented people?
Fortunately, data doesn’t lie so you can rely on certain metrics to determine how a real estate agent will perform in the future. You can learn more in the given link not only on how to find great candidates but also how data can help speed up your recruitment processes. What’s even better is that you can use the numbers to derive insights to improve your current team of agents. Of course, it’s crucial that you find a tool that will let you access reliable industry data sources.
That said, here are some metrics you should look at to boost your recruitment efforts and find the most productive real estate agents for your brokerage:
Monthly Production
It’s no surprise that the first thing you should look at when hiring a real estate agent is their productivity rate. Both monthly and yearly numbers are important, but do note that annual production can only be determined after a full 12 months. There may also be agents who are new to the field who may not have a full year’s record yet. Thus, it can be more helpful to track month-over-month values.
When it comes to year-on-year data, compare monthly performance while taking into account seasonal and market trends. For example, it’s normal to see a bit of a spike in sales around the fall and winter seasons; if an agent maintains a consistent performance during these periods, then it’s a reliable indicator of their consistency.
Sales Volume
The primary job of a real estate agent is, of course, to sell properties. Thus, you need to take a look at a candidate’s sales volume to gauge performance. Do note that you have to be careful about analyzing this metric. As it’s the total value of transactions based on the sales prices, it can easily reflect skewed numbers.
The best thing to do is to take a look at other factors aside from the number of deals closed. Check the sales price per property, for example, as well as the compensation plan at the time of sale. This gives you a bigger, more objective picture of a real estate agent’s performance.
Days on Market
DOM or days on market is literally the number of days that the property is listed on the MLS before it gets sold. Usually, a skilled real estate agent will have a shorter DOM. Meanwhile, a longer DOM might mean that there’s an issue with an agent’s performance that needs to be resolved.
Like the previous metrics, however, take a look at other factors before making conclusions. Some of the things you need to consider include seasonality and the prevailing market conditions. Of course, an abnormally long DOM is a critical aspect that you should definitely look into before you hire an agent.
Showings Per Sale
The showings per sale metric tells you how many visitors viewed a property in person or how many times an agent shows property to buyers before it is sold. This can be used as a measure of an agent’s capacity for two things: qualifying buyers and effectively showing a property.
Another aspect that can be revealed by the number of showings per sale is the correctness of pricing. If the property doesn’t sell after multiple viewings by prospective buyers, it might mean that the property itself is appealing but the price isn’t attractive or agreeable. For a more accurate assessment, find a similar property with a short DOM and an ideal showings per sale ratio.
Number of Calls Made and Appointments Generated
An important part of a real estate agent’s job is lead generation. In particular, prospecting is an important activity for acquiring new customers. Check the number of contacts a real estate agent makes monthly, and then from there take a look at the number of generated appointments. If an agent is able to engage a higher number of people, it may be a good sign of their potential to bring in more clients to your brokerage.
Client Feedback
Last but not least, your real estate brokerage needs agents who are able to maintain good business relationships. From start to finish of the transaction, agents must provide top-notch services to clients. This can be shown through their feedback.
Of course, client feedback can be highly subjective. Thus, look for consistency in the comments. Is an agent-friendly but able to maintain a professional manner? Are they knowledgeable about a property’s surrounding area? Do they answer queries promptly? If you notice a commonality of opinion from different customers, that’s an indicator of an agent’s good performance.
It can be tricky to find the best agents to recruit for your brokerage. The good thing is that you can rely on data to help you make the best hiring decisions. Consider the above-mentioned metrics when you look for potential candidates to build a competent team of agents.
Authored by: Martin Pattinson Glen Dimaandal Inc.
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