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KPI for Measuring of % Difference between asking and selling price of properties for sale posted in category Real Estate

WinningKPI - Real Estate - KPI for Measuring of % Difference between asking and selling price of properties for sale posted in category Real Estate Oana Boteanu This KPI is for measuring the % difference between the asking and selling price of the properties the real estate agent is selling. As asking prices tend to be higher than the selling prices, this KPI is looking at how much lower the property was sold at, compared to what the buyer wanted to sell it for (or asked for). This is calculated by measuring how much lower the selling price is as a % from the asking price.
There is a general market % difference, sometimes as low as 3-10%, and companies generally try to reach this %, or even achieve a lower one. Hence, the lower this KPI is, the higher is the ROI.
However, other factors may be taken into consideration, such as time period for the sale. A company may take 1 year to sale a property and have a % difference of 10%, or it may be able to sell it in 1 week with a % difference of 20%. Depending on the property value and circumstances, the seller may benefit more from selling it faster at a lower rate. Lots of other factors may be taken into consideration such as economy state, currency value, asset deterioration etc.

Formula:
(Asking price – Selling price) / Asking price x 100

KPI Units: %

KPI Time Frame:

Posted by Oana Boteanu | Help to protect community: Flag for moderation

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KPI Expert Example:

A real estate company selling properties is measuring the % difference between asking and selling price for the properties for sale, over a period of 6 months.

The formula is calculated as below, per individual property sold (the company sold 5 properties).
(Asking price – Selling price) / Asking price x 100

Let us take as example that one of the properties was put on the sales market with the following price:

Asking price: $250 000
Actual selling price: $220 000

Therefore, the % difference between the asking and selling price for this property is:
(250 000 – 220 000) / 250 000 x 100 = 12%

Assuming that the rest of the properties had between 5-12 % differences, the agency could average this figure as a 10 % difference for property sold.

Oana Boteanu | + | September 13, 2012 at 10:29 am

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