Doug Schrandt Consultant

Before you can prudently add profit centers and/or trim costs, you need to identify you... more

Doug Schrandt Consultant

Before you can prudently add profit centers and/or trim costs, you need to identify your break-even point for transaction sides in your current listing/selling business. Here’s the formula: 1) Divide your gross annual expenses by the number of transaction sides you’ve closed over the past year (i.e. a listing is one side, a sale a second). For example, say you had $47,200 in gross expenses and did a total of forty transaction sides. $47,200 divided by 40 = $1,180 break even per transaction side. In other words, until you exceeded $1,180 in revenue per transaction, there was no profit.

Real Estate Predictions Doug Schrandt

According to interviews with a number of brokers across the country, full-time active real estate agent numbers will shrink due to an increase of productivity on a per agent basis. The number of transaction sides per agent has been increasing in recent years, with technology and market conditions as factors.