As a real estate agent you need to know and understand numbers. I’m not saying you have to be a professional accountant. But like any small business owner, and yes, that is what you are, you have to know what is profitable and what is not. Certainly if you are a real estate agent that is going to work with real estate investors you will have to know your numbers for that, too. You can visit my REI Academy for more information on those numbers.
The numbers a real estate agent needs to know are;
- Agent’s personal conversion rate
- Agent’s average sales price
- Agent’s business expenses
- Agent’s personal expenses
Once you have those four numbers you can begin to work a great many formulas necessary to find out how many houses you have to list, how many buyers you have to work with and what your income will be from those efforts. If you are a brand new real estate agent you can use other agents’ personal conversion rates until you have done enough business that you can begin to plug your own conversion rates in.
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