How to Evaluate the Selling Performance of a Realtor

A Realtor can achieve high performance even in a depressed housing market.

According to the National Association of Realtors, housing sales can be negatively affected by lower property values, the economy and lagging sales. These factors, stricter lending requirements and inventories of unsold properties make it difficult to rate a Realtor's sales performance. Many of these factors affecting success are largely out of the individual's control. Because most Realtors are experiencing the same challenges, it is possible to give a fair evaluation of sales performance.

Instructions

1. Compare sales volume to goals. Every year, most Realtors set monthly and weekly sales goals. Adjusting for the economy, a Realtor with low volume according to the numbers could have had a good year in comparison to national trends. Adjustments made to Realtor commissions and other price considerations to facilitate a sale may affect sales income. A wide gap between goals and actual sales could indicate a lack of initiative or unrealistic goal setting.

2. Assess new listings. Potential business in new exclusive listings means more future income for the agency and Realtor. Initiative, networking and continued communication with past clients indicate the ability to generate new business despite a difficult market.

3. Review client feedback. Successful real estate sales depend on effective and attentive communication with sellers. When properties stay on the market for months and even years, frequent updates on the market and prospective buyer traffic are critical to keeping sellers happy and properties listed with an agency. Part of the Realtor's performance rating should take into consideration customer satisfaction levels and comments for improvement.

4. Evaluate the Realtor's marketing plan. Realtors operate much like independent contractors, with a client base, marketing strategy, networking schedule and customer communications. Although he might represent an agency, a Realtor should have a carefully crafted marketing plan with action items directed toward obtaining listings and closing sales. The ability to plan, organize and manage time and resources is part of a Realtor's performance measurement.

5. Gather feedback from team members. Real estate sales is a very competitive business. The drive to get new listings and make sales goals can divide sales teams within agencies. Teamwork and the ability to support the efforts of other Realtors within the agency are two areas of work performance critical to agency success. Trustworthiness and honesty are two measures of high performance when working with clients and the agency team.

References

• Microsoft Office: Evaluate your sales team's performance
• Real Estate ABC: Existing Home Sales - August Report