Have you tried unsuccessfully to increase your real estate profits year after year? Are your operating expenses heavily impacting your bottom line? Learn how you can increase your real estate profits in a powerful, comprehensive manner by making a few simple changes to the way you do business as a real estate agent.
Many real estate agents focus so much of their time on sales that they lose sight of the big picture. This is something that podcast guest Raj Bhaskar has seen all too often. As founder and CEO of a company dedicated to helping independent professionals manage their business finances, Raj knows what it takes to increase earnings, lower expenses, and decrease taxes to boost profits.
Read about Raj’s keys to making more real estate profits below and be sure to listen to the complete podcast interview for even more information!
Increase Earnings for More Real Estate Profits
As you might expect, the first key to increasing your real estate profits is to increase your earnings. There are two primary ways to increase your earnings as a real estate agent. The first (arguably the easiest) way to do this is increase your average sale price. In other words, you want to focus on selling more expensive homes. The other way to increase your earnings is to sell more properties. Depending on your local market, you may want to focus on increasing sale price, increasing your sales, or finding a good balance between the two.
Lower Expenses for More Real Estate Profits
The second key to increasing real estate profits is to lower your operating expenses. Before you can lower your operating costs, you need to start tracking your expenses and take a close look at where your resources are going. In areas where you dedicate fiscal resources, such as lead generation, you want to ensure your returns are justified. If you can see that certain areas are failing to generate satisfactory results, you can reallocate your resources or simply cut that spending to improve your bottom line.
Decrease Taxes for More Real Estate Profits
Decreasing your taxes is one of the most important keys to increasing your real estate profits. Unfortunately, it’s also something real estate agents tend to neglect, especially early on in their careers. In many cases, agents fail to take advantage of deductions out of the fear of being audited, but others simply fail to track potential deductions, like mileage, because they view it as tedious.
These days, with the availability of affordable professional accountants and the ability to automate the tracking of potential deductions, it really is worth dedicating some extra time and money to decreasing your annual taxes.
Raj also emphasizes how vital to earnings it is to create a value proposition that people simply can’t say no to. To do this, you need to go above and beyond what the average client would expect. You want to offer something meaningful to potential clients – something that other local agents don’t offer. For some clients, this might mean helping them with the process of getting approved for a loan. For others, it might simply be providing excellent customer service.
One way to work on developing a value proposition that your clients won’t be able to say no to is to take a long, hard look at what differentiates you as an agent. Ask yourself why potential clients should choose you over someone else. Believe it or not, many real estate agents have a hard time answering this question. When you can, you’ll be one big step ahead of the transaction-based agents who focus all of their attention on closing and ignore the end-to-end customer experience.
If you want to learn more about the ways you can increase your real estate profits, be sure to listen to Pat’s complete podcast interview with Raj Bhaskar. Also, make sure to check out Raj’s company Hurdlr to help you increase your bottom line.
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