Imagine, for a second, that you won the lottery. If you were to then speak to your financial advisor, they’d probably advise you to diversify your portfolio—have some short- and long-term investments, some high- and low-risk ones, and some liquid cash.
As a broker-owner/team leader, you need to do the same thing. How? By increasing the average sale price of the homes you represent and diversifying your portfolio. In doing this, you can earn 30% more over the next year.
“By shifting around your portfolio and increasing your average sale price, you’ll be working smarter, not harder.”
Starting at the 1:10 mark in the video above, I’ll show you an example of how this works. At that point, you’ll see four price point “buckets:” entry-level pricing, average pricing, high-end pricing (2X the average sale price of your market), and luxury pricing (3X the average sale price). If you’ve sold, say, 20 homes over the past 12 months, the majority of them would fall into these four buckets.
At the 2:35 mark, you’ll then see a pie chart of where these homes sold across this range for this example: 45% (9) in the entry-level bucket, 35% (7) in the average-pricing bucket, 20% (4) in the high-end pricing bucket, and 0% in the luxury-pricing bucket.
To earn 30% more over the next year, all you need to do is add more homes to the high-end and luxury-pricing buckets. At 3:38, I’ve provided another pie chart of how this might work if you sold 20 homes again over the next 12 months. This time, you’d sell 25% (5) in the entry-level bucket, 30% (6) in the average-pricing bucket, 30% (6) in the high-end pricing bucket, and 15% (3) in the luxury-pricing bucket.
By shifting around your portfolio and increasing your average sale price, you’ll be working smarter, not harder.
As always, if you have any questions about this topic or any other real estate topic, don’t hesitate to reach out to me. I’d love to speak with you, and in the meantime, make it a great day!
Founder & CEO | Luxury Listing Specialist Designation (LUXE)
to see where Michael is speaking next or where his next LUXE class will be.