Real estate agencies have the potential to increase their commission income by 46.4%, even with a constant number of property valuations. This is the result of a recent analysis by the real estate agency company Moveli. The increase could be achieved through a 10% improvement in each of four key indicators that significantly contribute to business success.
Moveli's study highlights that even marginal optimisations in individual areas can have cumulative effects on overall performance. The four metrics typically include the conversion rate from valuations to mandates, the closing rate from mandates to sales, the average sales speed, and the average commission per transaction. A 10% increase in each of these aspects leads to a substantial increase in total revenue.
Potential Analysis through Digital Tool
To support real estate agencies in identifying and quantifying this potential, Moveli has introduced an online calculator. This tool enables agencies to model their potential earnings based on their specific conversion rates and commission structures. This allows for the development of individual strategies for revenue optimisation and the simulation of their impact.
The calculator offers a practical way to visualise the effects of minor adjustments on the bottom line. This includes the ability to simulate various scenarios – such as the impact of an improved marketing strategy on the number of valuations or more efficient sales processing on the closing rate. The collected data and simulations can serve as a basis for strategic decisions and lead to the implementation of targeted measures to sustainably increase the efficiency and profitability of a real estate agency.
The findings from this analysis underscore the importance of a data-driven strategy in today's real estate market. By focusing on precise performance indicators and their continuous improvement, companies can not only maximise their revenue but also strengthen their market position. Moveli's approach offers concrete methodological support for this.
