Basic Real Estate Business Plan
Step 1: Set Your Income and Closed Sides Goals
(A) (B) (C) (D) (E) (F) $ 125,000 $ 300,000 3% $ 9,000 60% $ 5,400
Income Goal……………………………………………………..………………. Average Sales Price……………………………………………………………… Average Gross Commission Rate Per Side(%) ……………………………….... Average Gross Commission Per Side (B times C) ……………………………… Sales Executive Commission Split (%) …………………………………………. Sales Executive Commission Split before deductions (D times E) ……………… Less Franchise Fee (D times 6%) Less E & O - $ 540 - $ 37
Average Sales Executive Commission Per Side (F less deductions) …………… (G) Number of Closed Transactions Needed (A divided by G) ……………………. Number of Sides Needed to Put in Escrow (H divided by 80%) ……………… (H) (I)
$ 4,823 25.92 = 26 32.40
Step 2:
Calculate Prospects Needed Per Week
(J) (K) (L) (M) 19 27 81 48
Listings Sold Needed ( 60 % of line I) ……………………………………… Percentage of Listings Sold from total closings (I) Listings That Must Be Taken (J divided by 70%) ……………………………. Listing Presentations Needed (3 times K) ……………………………………… Number of Weeks Worked Per Year …………………………………………… Listing Presentations Per Week (L divided by M) ……………………………..
(N) ___1.69
Buyer Escrows Needed ( 40 % of line I) …………………………………….. Balance of (J) % to equal 100% Buyer Prospects Needed (3 times O) …………………………………………... Number of Weeks Worked Per Year ……………………………………………. Buyers Needed Per Week (P divided by Q) ……………………………………..
(O) (P) (Q) (R)
13 39 48 .81
www.JanOBrien.com
1
www.CareerRealty.com
Step 3: Calculate “People Contacts” Needed Per Week
Sellers Total Listing Presentations Needed ________81_________ (from line L)
Prospecting Source Annual % / # of Presentations Per Source Contacts to Produce a Presentation Annual Contacts Needed Weeks Worked Per Year Weekly Contacts Needed
Cold Calls
150
10% / 8
1,200 400 160 180 1,400 600 800
48 48 48 48 48 48 48
25 8 3 4 29 12.50 17
Door Knocking
100
5% / 4
FSBO’s
10
20% / 16
Expireds
15
15% / 12
SOI/Past Clients
50
35% / 28
Just Listed/Sold Target Marketing Other Other
150
5% / 4 10% / 8
100
Buyers Total Buyers Needed ____________39______________ (from line P)
Prospecting Source Cold Calls 10% / 4 SOI/Past Clients 50% / 20 Open Houses 30% / 12 Signs/Ads Internet Other Other 5% / 2 5% / 1 Annual # of Buyers Per Source Contacts to Produce a Buyer Annual Contacts Needed 400 600 120 20 50 Weeks Worked Per Year 48 48 48 48 48 Weekly Contacts Needed 8.33 12.50 2.50 .42 1
100 30 10 10 50
www.JanOBrien.com
2
www.CareerRealty.com