Spring symbolizes renewal and growth, both in nature and in business. For the real estate industry, it marks a crucial period where buyers eagerly pursue their dream homes. However, let’s face the truth: success in this spring market won’t solely depend on external factors like market conditions; it’s about your proactive efforts.
Recently, at a major real estate conference, a leader from a prominent franchise remarked about the decline in brokerage profitability. But here’s the reality: while agents are indeed earning more than ever, brokers too have ample opportunities to thrive financially.
With years of experience and analyzing lots of financial statements every year, we know there’s lots of untapped potential in brokerages. Let’s talk about simple steps you can take to make sure you get your piece of the profits.
- Implement an Activity-Based Productivity Plan: Activity breeds results, irrespective of market fluctuations. Foster a culture of consistent training and accountability within your agency. Encourage agents to engage with potential clients regularly, as meaningful conversations lead to listings.
- Plan for Profitability: Understand your margin targets and adjust your business model accordingly. If you don’t know your margin goal, you can’t adjust your business to make enough profit.
- Seek Professional Guidance: If you’re struggling to make a profit, don’t hesitate to get expert advice. Making the right decisions now can lead to big rewards later. Visit our website for helpful resources or book a free consultation with one our coaches for personalized guidance and strategies.
In 2023, we experienced the lowest transaction volumes in nearly three decades. While 2024 may offer a slight increase, it won’t be significant enough to drive substantial change. What you do today will affect your brokerage’s future. Despite the market’s challenges, the majority of our clients enjoyed high profitability in 2023. What set them apart was professional guidance in crafting profitability plans and early execution.
Implement these three actionable steps and shape your 2024 outcomes. And the good news? The changes you make in 2024 can set the stage for record-breaking success in the subsequent years. Brokerages that achieved exceptional profitability were those that planned for success in a low transaction market and carried that momentum into a rising market.