There are some amazing rewards to be had in the real estate business, but there’s also a ton of competition. If you’re going to cut through all the noise and break through as a broker, then you’ve got to start setting strong real estate goals.
It might be a small detail, but it can make a massive difference to every aspect of your performance. Let’s take a look at how you can implement smart real estate goals that get results.
What Is Really Important to You?
It’s easy to set goals based on what you think you should be doing rather than what it is you want. To set your real estate goals, you’ve got to take a close look at your life and decide what you want from it.
These things change as you progress through life, but they can help guide you in your goal setting.
For instance, you may decide you want to live comfortably while maintaining the best possible work/life balance. If, on the other hand, your goal is to earn enough money to retire as quickly as possible, then your goals and the way you achieve them will look very different.
It’s not always an easy question to ask yourself, but what is really important to you?
Timeframes are important for keeping your real estate goals realistic and allowing you to track your progress.
If we go back to the goal of earning enough money to retire as quickly as possible, then it’s perhaps not realistic to expect to do this in a year, or five years. What you can do is look at other goals you can achieve in those time periods to help you achieve your overarching goal.
Say you need $1 million in the bank to happily retire – what milestones do you need to reach within a year, within five years, and so on? These goals can help guide your real estate business, and give you the feedback you need to make big decisions.
If you feel like you’re getting everything you can out of your current team and you’re not hitting those targets, then you know you might need to expand. If you’re ticking all the boxes on revenue, but you’re not saving enough money, then you know you’ve got to look at efficiency.
The larger time frames will speak to the macro side of your business, but you’ve also got to have a focus on the day-to-day details. This is where those smaller goals and strategies come in.
What things do you and your team have to do each day, each week, and each month to get you to where you want to be in five years? These goals can be as simple as answering every phone call within 5 rings or doing 100 viewings a week.
Break Things Down Into Bite Size Chunks
It’s easy to throw out big numbers as part of your real estate goals, and expect everyone to work towards them. The question is, what does $1 million in revenue (or whatever you choose) mean on a day-to-day basis for all your team members?
You can have this big overarching goal, but it doesn’t mean much unless people can see what they’ve got to do to help achieve it.
It’s often easier to look at this from a transactions point of view, rather than from revenue and break it down from there:
- If you take your average transaction value, then how many transactions do you need to facilitate to reach your goal?
- Based on how many team members you have, how many transactions does each team member need?
- Looking at your viewing to transaction ratio, how many viewings need to be carried out to reach that number of transactions?
- Based on your contacts to viewings ratio, how many calls need to be made to secure that many viewings?
All of a sudden, you’re not looking at an arbitrary figure of $1 million, each team member is looking at a goal of 200 calls and 25 viewings a week (or whatever you decide on). Now you’ve got a tangible, actionable, and measurable real estate goal.
There’s no point setting a goal for the year and revisiting it in December only to find out you’re miles off achieving it. Real estate is a fast-paced industry, and your real estate goals need to reflect this.
As we’ve talked about, it’s important that you have short-term, mid-term, and long-term goals, and break them down into attainable chunks. Just having these goals isn’t enough though, you’ve got to regularly return to them and measure your performance.
For a real estate broker, this means constantly assessing your personal goals, but also helping your team stay accountable to their own goals. It’s not about punishing those people who aren’t reaching their goals and rewarding those who are – it’s about helping them put better systems in place so they can achieve and eventually exceed them.
To do this, you’ve got to have a regular focus on goal setting, otherwise, it’s easy for people to drift and lose track of what they want to achieve.
Use Data to Mold and Refocus Goals
Nobody achieves all of their goals all of the time. If this is the case, then you’re not challenging yourself. Goals should be realistic, but they should be challenging at the same time.
When you do miss out on your goals, the most important thing is to learn why it happened. We’re lucky that in modern times we have access to an endless amount of data, all of which can give a lot of insights into performance.
Something you need to do when you’re setting your goals is to ensure you have key performance indicators you can judge yourself by. For example, if your goal is to sign 3 new clients a week, what KPIs are going to dictate your success in this area? You may look at the number of cold calls you make, the time it takes to respond to requests for information, or any number of other KPIs.
Your short-term goals will come and go quickly and whether you achieved them or not, you should be reflecting on them to help you set even better real estate goals for the future.
Conclusion: Real Estate Goals
Setting real estate broker goals is an important part of success. Without them, it’s much more difficult to know whether you’re heading in the right direction, and ultimately, whether you’re achieving what you want to achieve.
Everyone’s goals will look slightly different, but the important thing is that they’re specific, measurable, attainable, relevant, and time-bound. If you can make SMART goals a big part of everything you and your team do, then it’s only going to improve performance.
If the next step in achieving your goals is getting a real estate or broker’s license, then check out our courses. For even more tips on running a real estate broker business, learn more about our broker course!