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Why be a Real Estate Consultant?



Are You "Majoring in Minors"? Determining the Value of Your Time

It’s Vital to Realize Your Value:  While it’s enlightening to uncover how valuable an hour of your time is worth, it’s a whole other level of guts and gumption to be empowered by it!  Here’s an approach to help you get comfortable with realizing your value.  For one week, write down every major activity you do and the time and resources it takes to perform. For example, say you spend thirty minutes online accessing county records, followed by another thirty minutes putting the information into a subdivision analysis for a potential seller.  That’s not only time spent, it’s one hour of your time at your gross hourly rate of $150.  At the end of the week, determine how many hours you spent on major activities multiplied by your gross hourly rate.  For most agents this could easily total several thousand dollars.  Keep this figure in mind since we’ll use it again in the next paragraph.

How Much is “Majoring in Minors” Costing You?:  Next analyze the tasks you performed to determine:  Step 1) How many of the activities could have/should have been performed by a lower-compensated assistant and what would you have paid to have them performed?  Step 2) Subtract the answer in step one from the dollar amount of time YOU spent performing tasks (your gross hourly determined in the previous paragraph times the number of hours you spent performing tasks).  The difference is what it COST YOU to do those tasks yourself!  

The end result of your findings may startle you.  Not only are you “majoring in minors”, you’re wasting hundreds/thousands of dollars per week by not having someone perform mundane tasks that could free you up to generate far more hours at your gross hourly rate.  Many of us sacrifice “doing it all” at the altar of lost profitability year after year after year.

While the changing landscape of the real estate industry proves ever challenging, the greatest challenge lies within us---to evaluate what we spend, why we spend it and how we can positively impact and improve our own bottom line.  It all begins with the courage to uncover our true value followed by the guts to monetize it!

If you’d like to learn more about profitability and fee-for-services, sign up to take the C-CREC® designation here.

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