For those that have followed this post for years, here is a reminder of something I have shared before. For those recent followers, here is an important concept that you need to be aware of and how to tie it into what is my ongoing reminder about tracking your numbers.
As we head forward into the spring buying season it becomes more and more important to track and follow your numbers. Just like we compared our first quarter numbers year over year, and how they measured up as a percentage of our total business, we also have the second quarter well under way!
If we are accurately measuring our contacts, credit pulls, pre-approvals, and gustation periods of our borrowers; we need to understand the “BUILD” in the number of pre-approvals in our pipeline. Spring is the time we are likely to see the biggest build in those numbers, and Easter weekend is generally the time that the real spring buying season begins in earnest!
As we are tracking our numbers we must pay strict attention to our pre-approved borrowers so we don’t “leak” any of those people away to other originators! Preventing leakage is just as important if not more important than generating the new contact in the first place! So keep those weekly tracking calls at the top of your Thursday priority list!
The other part of this model is to understand that the longer you continue to grow your pre-approval pipeline over the number of new contracts, the longer the wave of productivity in your buyer’s market will continue! Pushing that wave further and further into the summer will result in a longer buying season for you and your referral partners! Once the number of pre-approvals falls below the number of new contracts, you have begun your “DEPLETION CYCLE” which signals the end of your peak buying season.
Pushing that cycle as far as possible can result in a serious number of “extra” transactions for you to close! For example, if your average monthly number of loans is 3-5 units a month, and your “peak” number is 8-10 units, pushing that wave, even for just one more month is an extra 5 or more units! That is like getting an extra month of production FREE!
Tracking your business and following your momentum is an important tool in improved production. Those extra few deals also bring a few extra sets of contacts and future referrals! It’s important that we look at our business like a business. Tracking your numbers and understanding your business flow and conversion rates are a part of making the most out of each and every opportunity!
Questions or comments: Mike@IMTcoaching.com