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Boost commissions by breaking into the luxury market

NEW YORK – Dec. 6, 2017 – To grow their average commission income per sale, agents should master five basic concepts that can increase the average selling price of each transaction.

First, they should focus on listings because it’s easier to control the average sales price on the listing side of the business than it is when working with buyers.

Two, they should know their numbers, specifically the number of listings and buyer sales they closed in the last 12 months, their average sales price for each of those listings and buyers, and how much they earned on their average closing for both. To make the numbers easier to work with, they should insert those figures into a spreadsheet and set goals to boost each number.

Three, they should take growth one step at a time. If they follow the 50 percent rule, it can get them to the million-dollar market in just four years. How it works: If an agent’s average sales price is $200,000, they should try to increase it by 50 percent the first year to $300,000.

Four, they should research the market and choose a neighborhood that offers their best chance for success based on total number of homes in the neighborhood, the number that sold within the last 12 months, the turnover rate, and the market share of agents in the last 12 months. Ideally, they should target neighborhoods with turnover rates of 7 percent or more, and one where no single agent has a market share of 25 percent or more.

Finally, agents should never think they’re not good enough or smart enough to work with higher-end clients. They should always remember that these clients merely want agents who work hard, are 100 percent focused on their interests, and have confidence in their ability to get the job done.

Source: RISMedia (11/28/17) Gaddis, Cleve

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