Mar
16
How many listings do you need to carry at a time to reach your goal?
Posted by Deborah Benn under For Realty Professionals, Business Planning
Goal for number of transactions you must close to make goal (A)
Figure 10 percent fallout if you do not know your actual number (B)
- 10 percent of the number above
Add the number of your goal to the number which represents 10 percent - A + B = (C)
What percentage of closings will be listings? (D)
Times the total (C) by the percentage (don’t forget the decimal point) - C X D = (E)
What percentage of your listings sell? (F)
Percentage (E) divided by (F) = (G)
What are the average days on market? (H)
Take average days on market and divide into 365 = (I)
- This is your average turnover rate
Take average turnover rate (G) / (I) = (J)
Total listings you must carry to reach your goal!
EXAMPLE:
You want to close 50 transactions 50 A
Then 10% is 5 B
55 Total C
What percentage of closings will be listings 40% D
Listings I need to close 22 Total E
% of listings that sell 50% F
22 / .5 = 44 44 G
Avg. days on market 100 H
365 divided by 100 = 3.65 3.65 I
44 divided by 3.65 = 12 12 G / I=J
You must carry 12 listings at all times
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