Maximize Profit in Today's Real Estate Market

By Andrew Duncan

Hi I’m Andrew Duncan and I’ve built a top-selling real estate team in Tampa. I just moved to LPT Realty after being with REMAX for years. The splits are better, the revenue share is better, and it’s honestly the perfect business model now that we can build on the existing success of proven cloud brokerage models. I invite you to check out LPT Realty. Move your license over to us. We’re a brokerage focused on listings and profitability.

The real estate market is constantly evolving, and with these changes come new challenges in maintaining and increasing profitability. Recently, I attended a real estate mastermind meeting with top team leaders from across the country, where we discussed the declining profits many are facing in today’s market. Drawing from these insights, I want to share three actionable steps (plus a bonus tip) that can help you enhance the profitability of your real estate business.

1. Target higher-priced clients. In real estate, we earn a commission based on the sale price of a property. Naturally, targeting higher-priced clients can significantly boost your income. Here’s how:

• Create luxury content to attract high-end clients.
• Use tools like Boomtown to focus on leads interested in more expensive homes.
• Run targeted ad campaigns in neighborhoods with higher property values, like Hyde Park in Tampa.

2. Charge more for your services. There’s no standard rate for real estate commissions, and your earnings should reflect your value. Consider these approaches:

• Offer additional services that justify higher fees.
• Clearly demonstrate your value to clients, setting yourself apart from the average agent.

3. Cut expenses and measure ROI. Analyze your profit and loss statements to identify and eliminate non-performing expenses. Your goal should be to have expenses that create more revenue or provide a satisfactory return on investment (ROI).

Bonus Tip: Explore additional revenue streams. Consider other revenue pillars to supplement your income, such as:

• Preferred vendor programs that support your marketing budget.
• Revenue sharing or stock options in real estate companies for recruiting new agents.

By targeting higher-end clients, justifying higher fees for your services, optimizing expenses, and exploring additional revenue streams, you can significantly improve your real estate business’s profitability. Remember, success in this industry requires adaptability, strategic planning, and a willingness to learn from past mistakes. If you have questions or need guidance, don’t hesitate to call or send an email. Let’s grow a profitable real estate business together!