There’s an old saying among Realtors: “you have to list to last.” This holds true today as it did 20 years ago.
Why You Must Focus on Listings
If you are exclusively working with buyers, you are probably very busy. Buyers demand a lot of your time, mostly on weekends and evenings. That’s when they are off work and want to look at houses.
The best way to gain leverage and work more regular hours is by focusing on listings.
You can service more listings than buyers at the same time. And most of that work can be accomplished during weekdays, so you don’t have to run around every weekend showing houses and submitting offers.
What’s Your Magic Number?
The magic number is a concept promoted by real estate coaches Tim & Julie Harris. It represents that number of active listings you should have at any time to reach your financial goals.
Let’s say your goal is to earn $12,000 a month and assume your average commission is $6,000. So, you need 2 closings a month to achieve your goal.
How many active listings do you need to sell 2 homes a month?
Depends on the Days on Market plus time to close. DOMs is currently 47 in our MLS. Add another 45 days from contract to close, and you end up with 3 months.
You will need 6 active listings at any time to reliably close 2 a month.
If you keep your listing inventory at 6 throughout the year, you will likely achieve your goal of 24 sales and make $144,000 a year.
Your magic number is 6.
How to Reach Your Magic Number?
The hardest part is to create your initial inventory of 6 listings.
Implement 3 listing strategies and focus on the most motivated sellers – home owners who must sell, like Expireds, FSBOs, Probate, and of course your sphere.
Once you reach your magic number of listings you just need to replenish every listing you sell with a new one.
If you want to increase your income to $18,000 a month, simply increase your listing inventory to 9.
You can learn more about the magic number, why you should be a listing agent and not buy online buyer-leads, and why profitability is more important than transaction count by listening to the MAGIC NUMBER EPISODE of the Tim & Julie Harris Podcast.
For more inspiration and motivation follow Agent Insider on Instagram.