As we talk about leaking profits in the new home sales industry it’s important that you pay attention to real estate agent participation. You need to be aware of how much of your business is coming from realtors. Whether it’s too much, or too little it’s important to take note so you can plug up holes in your profitability.
Do you know what percentage of your sales can be attributed to a real estate agent? The number of homebuyers who use a real estate agent rose to 89 percent in 2013, showing a steady increase from the 69 percent statistic in 2001. How does your number compare?
By making your program more Realtor-friendly, you can close up another hole in your profitability!
- Find the right balance.
- Too much is as bad as too little. Aim for no more than 60 to 70 percent.
- Too much Realtor participation means your salespeople aren’t closing enough of their own sales.
- Never penalize a salesperson’s commission for Realtor-involved sales.
BOTTOM LINE: Realtors play an important role in your new home sales; be sure to keep their participation at a healthy level.