All indicator show that there will be less homes sold in 2023. If trends continue as anticipated, and with the latest comments from FED chairman Powell this week on continued interest rate increases, we could see a 15% drop in home sales. So how should you respond? How can you prevent a 15% drop in your business? With fewer people moving we need to adjust our numbers. If you had a database of 300 people that provided you with 20 sales last year, it will only provide you 17 sales this year. A 15% drop. In order to have 20 deals from your database you’ll need a larger database, but how larger?
Here’s the math. Take the 300 and divide it by 0.85 or 85%. Your answer is 350 people. You’ll need to find 50 more people to generate 20 sales. Or take that geographic farm of a 1000 homes that produced 10 sales last year, it will only produce 8 sales this year. Want it to produce 10? Divide 1000 by 85%. You’ll have to farm closer to 1200 homes for the same results. Do this math across your entire business and you won’t have to participate in the 15% dip. You might even want to apply this to your prospecting time. If last year was 60 minutes a day, divide it by 85% and bump it up to 70.
Keep elevating our industry.
https://youtu.be/HUSPLDbKTrE
David Veldkamp
Owner | RE/MAX GR
Mobile: 616.460.6123
Office: 616.957.0700