Residential Sales Mastery
01 · 51Free preview

Appraisal farming — the compounding engine

01 · Advanced prospecting · Masterclass · 14 min

Appraisal volume is the single number that predicts your income eighteen months out. Agents who treat appraisal farming as a system rather than an occasional favour build a compounding pipeline; agents who wait for referrals build a lottery ticket.

The maths that runs the business

Work backwards from the income you want. If your average fee return is $10,000 and you need $500,000 in GCI, you need 50 settled sales a year. At a realistic appraisal-to-listing conversion of 25% and a listing-to-sale rate of 80%, you need roughly 250 appraisals a year — about 20 a month, or one a working day. This is not a motivational number, it is an operating target you track weekly like a KPI, because appraisals booked this month become listings next month and settlements the month after. Most underperforming agents have a listing problem that is actually an appraisal problem three months upstream.

Track three numbers on a whiteboard or CRM dashboard every Monday: appraisals booked, appraisals conducted, and listings won. If bookings fall for two consecutive weeks, your commission cheque in ten to twelve weeks falls with it — the lag is real and it is why so many agents feel a 'quiet patch' arrive out of nowhere. It didn't arrive out of nowhere; it was decided three months earlier when prospecting stopped.

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