There’s a lot of numbers in real estate: commissions, interest rates, absorption rates, days on market and many more. It would be easy to think that the most important number to know in your business is the number of transactions you want to do for the year, but that is actually incorrect.
In order to get to that final number, you have to drill down on a series of numbers that will lead you there. After all, how can you find your way to a place you’ve never been to without a map? Reaching your goals in real estate is the same. To help you find your way, we’ve developed the Magic Number Formula.
Every persons magic number is different. It’s based entirely on your own personal goals, defined by your own financial and motivational boundaries. What remains the same though is concept of creating a predictable business that readily flows with commissions instead of constantly drying up.
So, what is the magic number? It’s the total number of Active listings you must have in inventory at all times to meet or exceed your goal. In other words, how many listings do you need in order to create a predictable number of closings per month that matches what your goal calls for?
If you’re new, you may be thinking “I don’t even have any listings yet!” and start to worry that this won’t apply to you, but it does. Our first priority is (and yours should be!) to make you all great listing agents, so when you follow our tools and systems, becoming a strong listing agent is 100% doable.
While buyers are fun, they are based solely on “want” and not need, so they’re unpredictable in terms of their ability to generate predictable income. When you work your business from your Magic Number, you’ll always know exactly what you need to achieve to bring home the big bucks!