A Real Estate agency has to simultaneously take up numerous tasks which range from preparing contracts to undertaking comparative market analysis. Quite expectedly a real estate agency needs to have a suitable performance measurement tool in place to evaluate its numerous functions and a well structured BSC (Balanced Scorecard) is often the answer. The metrics, which can be put on it for a 'quantitative scrutinizing act' can be those relating to areas like Financial, Workforce Potential, Internal Operations and Growth. Financial measuring can be done using parameters like operating profit, % increase in advertising budget, % increase in average per agent revenue and % increase in operating expenses. Growth can be evaluated and increased using the metrics like % increase in the number of successful deals, rise in the territory index, % rise in amount of commission and level of increase in business from referrals. Internal operations of the organization can be assessed by employing metrics such as number of services offered, number of financing options, number of listing methods and time for which the website has been into existence. Workforce is yet another important perspective to be analyzed. This is possible with indicators like number of employees, mean experience, average associated time, number of transaction sides per agent and % difference between initially listed price and negotiated price.
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Real Estate Agencies are involved in helping people strike deals for buying and purchasing of real estate property. They are required to abide by a number of legal and judicial rules and regulations. Consequently, a 'quantitative' route to know about the progress of things is needed.
One can utilize this management tool by collecting sufficient number of KPIs (Key performance Indicators) or indicators for reflecting the areas in an 'enough transparent manner'. These metrics can be put together on a Balanced Scorecard (BSC) and utilized for further consultations to minimize difficulties of organizations dealing in landed property. One can get to know about the variations in values, if any. Therefore, one can introduce improvements in the 'course of action' in future and ensure that steps are more 'sure to succeed' than ever before.
Also, numbers are believed to be more potent in emphasizing facts, thereby giving yet another reason for using this 'performance measurement and management' tool in a real estate company.
The instability in the present economic scenario makes it all the more important to bring such an instrument into the organizational operations of a Real Estate Agency.
Some of the areas that can be traced to keep the things in place (for firms operating in land and buildings) relate to 'financial', 'growth', 'internal operations' and 'workforce'.
This is the actual scorecard with Real Estate Agency Indicators and performance indicators. The performance indicators include: financial perspective, operating profit, % increase in advertising budget, % increase in average per agent revenue, % increase in operating expenses, growth perspective, % rise in number of successful deals, rise in the territory index, % increase in business from referrals, % increase in commission level of realtors, internal operations perspective, number of services offered, number of financing options, number of listing methods, time for which website has been working, workforce potential perspective, number of employees, mean experience, average associated time, number of transaction sides per agent, % difference between initially listed price and negotiated price.
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