The daily responsibilities of running a real estate brokerage can be exhausting. Between research, recruiting, management, and the daily paperwork, brokers can quickly lose sight of what is most important to running any kind of business: generating true profit. Some get stuck in their ways and fail to see new avenues to trim costs or maximize revenue — others are stuck with inefficient practices and don’t even know it. Regardless of how large of successful the brokerage, there are always ways that profit can be increased. Read on to find some easy tips for getting your revenues up and costs down. Embrace Change
The nature of both real estate and homebuying are changing. Once a very personal and face to face process, the majority of a homebuying transaction can now frequently take place online. Brokerages that keep lock step with old fashioned ways will eventually get left in the dirt. A broker needs to keep abreast of new developments and innovations if they’re going to have a chance to keep up in the market, let alone generate a profit. Even if a new idea seems uncomfortable, it’s work attending workshops and conferences to see how any and all new developments can be utilized in your brokerage. Don’t be afraid to embrace the new and dive headfirst into anything generating healthy ROI.
Cut The Fat
Giving your agents the resources and tools needed to effectively market homes is crucial, but agents occasionally think they need more than they actually do. Don’t be afraid to take away popular resources if they are not generating an appropriate cost to revenue balance. While listening to your agents is also important, the fact of the matter is that a brokerage is a business and agents are more than capable of occasionally being wrong. There is no reason to be pushed around by your employees. Prioritize
While cutting back on costs can ultimately generate higher profits, the fastest way to bigger checks is through growth. In a brokerage, this means attracting and retaining top tier agents. Recruiting should be the single most important aspect of a brokerage’s efforts. Without quality recruiting, there revenue stream simply won’t exist. There is no asset more valuable to a brokerage than a capable agent, and as such tracking down the best of the best should be a top priority.
Try these tricks out to maximize your brokerage’s profits!