Here are the 10 Important Real Estate KPIs you should be tracking to measure the performance of agents in your real estate team.
Not tracking agent performance for your real estate team is a massive mistake that hampers team profitability. If you don’t track your real estate KPIs then how will you know what your agents are doing. Moreover, how can you coach and help them perform better for your business growth?
Tracking these real estate metrics and then helping your agents grow through personalized coaching and 1-1s will help improve lead opportunities for your agents, save your lead spend, and rectify all cracks in your agent pipeline.
The team’s conversion rate grew 2x in just 90 days by checking their agent performance metrics daily through Auctm.
Weekly check-in meetings and personalized growth plans for their agents have helped increase the conversion rate from 3.2% to 6%! They have also increased their ‘Average Leads Worked Per Agent’ from 60 to 133!
This is the magic of tracking agent performance metrics regularly.
Now that you know what proactive agent performance tracking can do, let's look at some critical real estate KPIs.
10 Real Estate KPIs to track your Agent Performance:
You can break down agent performance metrics into 3 subparts -
- Activity Metrics: How much effort an agent has put in to close the lead - leads worked/not worked, Conversations, appointments set, appointments met, Buyers Signed / Listing Signed & Showings Done / Open Houses.
- Quality Metrics: A quality real estate metric is measured to understand how well an activity is being conducted - Speed to lead, attempts per lead, conversion rate, lead to hot% & hot to close %
- Outcome Metrics: It signifies the final impact activity metrics and it’s quality metrics combine to create - pending/closed deals, and GCI.
Let’s break these subparts down into the metrics you need to track.
1. Leads Worked & Leads Not Worked
Agents need to be on their toes from the moment they get a new lead.
Tracking this real estate KPI will help you understand which agents are putting in the effort to contact a lead. By monitoring this weekly, you can always work on reassigning leads & coaching agents who are not too proactive.
Okay, so you know which agents in your team are working their leads and the ones that are not. Now what? You also need to track the number of leads they actually got connected to. Connected leads are leads that have shown some sort of interest or response to your reach out.
3. Appointments Set & Appointments Met
Buying a house is not a 1-week process; it takes a long time to cross the finish line. Hence, just calling, texting, and emailing won’t work; what comes after? Appointments!
Not only is it essential to check how many appointments an agent has made for their leads, but it is also important to check if those appointments happened or not.
4. Buyers Signed / Listing Signed
This real estate KPI is often not tracked but is a great indicator to predict the conversion of a lead.
As part of the exclusive buyer/seller representation contract, the buyer/seller lead agrees to work only with a particular buyer/seller agent and their brokerage. This is a very underrated indicator, but will help you get predictability in your lead conversions!
5. Showings Done / Open Houses
The number of showings done and open houses are pretty obvious KPIs that any real estate team should track for their buyer and seller agents, respectively.
Booking showing appointments with potential buyers and then actually turning up to those appointments is important. Not only that, but persuading buyers to attend these appointments is also an essential skill. The more showings your agents do with prospects, the higher chances they have of conversions, potential referrals, and opportunities of them working with your team again!
Open houses are a great way not only to sell a property but also to collect leads. Multiple buyers come to open houses - If the current property doesn’t work, then directing them to other listings that you manage will be helpful.
6. Speed To Lead & Attempts Per Lead
Speed to lead is the amount of time an agent takes to reach out to a lead from the moment they get a lead.
A good speed to lead will get you more appointments, and eventually more pending/closed deals and GCI.
Speed to lead is essential, but what if your potential client does not respond in the first go? Will you just let it be?
This is where attempts per lead comes in. It is the number of times you try to contact a lead before you connect with them. In simple terms, this shows how much your agents are investing in a particular lead.
7. Lead to hot % & hot to close %
These 2 real estate metrics help you understand how your agent’s lead pipeline is progressing. These show you the % of leads that go to an agent’s hot stage, and then the % of leads that close from the hot stage respectively.
Using these metrics, you can forecast the number of closings for an agent, or the number of leads/hot leads they’ll need to get to a certain number of closed deals.
8. Conversion Rate
Conversion rate in real estate is the rate at which your leads will turn into clients. A good or bad conversion rate depends on your business and your brokerage/team goals.
It’s a great metric to understand and compare how well agents are performing within your team.
A low conversion rate probably means your agent is lacking in some activity, or quality metrics, and prompts you to dive deep into other metrics to see where the problem is.
The activity and quality metrics need to amount to something, right? Here is where the outcome metrics come into play. They show the results of all the activities your agents have put into their leads.
9. Pending & Closed Deals
Pending deals are deals where the contract has already been executed between the buyer and seller. During this "conditional period," the buyer is doing their due diligence in submitting the offer to their lending institute, such as a bank, in order to get the final approval for the loan. This more than likely means the buyer will need to get an appraisal of the house done, as well as an inspection.
A closed deal is the final stage of getting the house. It is when all the paperwork is done, and the property title is being passed on to the buyer.
Both these metrics are important to check because they are the final result of the efforts an agent is putting in.
GCI stands for ‘Gross Commission Income’ - It is the amount of money a real estate team gets for their services in a transaction. Higher GCI is a direct outcome of the number of deals an agent closes.
What should I do after all this tracking?
When you are trying to check the performance of your agents or team, divide your metrics into these 3 segments to make correlations easier.
But what after this? What happens after you have checked these metrics, how do you proactively help your agents improve their performance? We have an answer for you - Agent 1-1s & Goal Tracking.
Going over goals during 1-1 sessions with agents can be a huge step towards improving performance. Having weekly/monthly goals will help you keep track of who is actually working on themselves and their overall performance. This will also help you understand an agent’s contribution to the entire team and their profitability.
How can you conduct these sessions conveniently you ask? Well, Auctm has an efficient agent 1-1s dashboard that will provide you with all the metrics mentioned above. Not only that but it also has a newly launched notes section where you can keep track of all your agent goals and create personalized coaching plans!
Want to know more about Auctm? Book a demo with us!