Tracking Performance: 16 Metrics To Determine Real Estate Agent Success
Your brokerage relies on the success of your real estate agents. Your bottom line will suffer if they aren’t bringing in and closing deals.
On average, your real estate agents must close between 5 and 10 monthly transactions for your brokerage to break even, depending on the market and operational costs.
To determine if someone is a successful real estate agent, you need to track their performance. Whether they’re a new real estate agent or a seasoned professional, you need to know how your employees are performing.
Tracking certain real estate metrics helps you better understand how your agents are performing. It also assists you in generating a stronger bottom line by ensuring you’re reaching your targets.
However, knowing which metrics to track and how to interpret them can be challenging.
In this article, we’ll discuss 16 metrics that you can use to track the performance of your agents and your real estate business. Below are some metrics to consider:
1. Monthly Production
Agent productivity is a vital metric to track for real estate success. It’s the metric most directly related to your bottom line—company dollar.
🤔 What is monthly production?
The number of closed transactions that successful real estate professionals complete contributes to your total revenue. This is true whether your agents pay a flat fee to your real estate agency or are on traditional commission splits.
Annual production is also an important metric to consider. However, as this number isn’t often reported on, it’s usually not as helpful in determining monthly expenditure changes throughout the year.
Instead, you should track monthly production both month-over-month and year-over-year.
If an agent performs better in the same month of each year, it’s a good indicator of their skill development as they reach the same targets.
This approach also helps to predict production changes due to seasonality or other consumer trends.
It’s not always possible to pull year-over-year data when you have a brand-new agent who has been with your company for less than 12 months. In this case, track month-over-month production while keeping typical seasonal trends in mind.
➡️ How monthly production impacts your bottom line
Most brokerages have a variety of agents: full-time, part-time, and producing admins. Each type of agent has a cost to the real estate office. Monthly production, or the lack thereof, is the clearest way to see which agents cost the most.
Consider the primary source of revenue: total company dollar. If you only charge a flat fee, you’re not making any money when agents aren’t producing—you’re losing money because you’re still paying to allow them access to your tools and infrastructure.
The same is true for agents working on commission splits. You may make more from each of their closed transactions, but you need to weigh the cost against the expense of supporting them.
Take software, for example: many tools for real estate charge per-user fees and require long-term contracts. This is an expense your brokerage must cover so that agents can use this software.
2. Days on Market (DoM)
The second metric to track closely is when agents’ official listings remain actively listed on the real estate market— called days on market (DoM).
🤔 What is days on market?
Days on market is simply the number of days the property is listed for sale on the multiple listing service (MLS) before it’s under contract.
Often, this can indicate an area of quick improvement. Once you have a clear idea of days on market for each agent, consider why some have properties listed on the market longer than your top achievers.
A higher-than-average number of days on market is a metric to watch over time. However, it’s not necessarily a critical sign of an underperforming agent. Seasonality generally plays a role in days on market, as will other changing market conditions.
After considering all relevant factors, a higher-than-average days on market metric may still indicate that an agent needs support to improve.
➡️ How days on market impact your bottom line
Active buyers and real estate investors move quickly when the right property lands on their radar.
However, when buyers begin seeing the same listing for sale, they tend to assume something may be wrong with the asking price, the location, or even the property’s condition.
Whether a high number of days on market is due to one or all of these factors, it generally requires the asking price to come down, which affects the total commission.
Understanding this metric will help you identify agents who need coaching and support.
Consider additional mentoring or supportive measures to improve their ability to conduct comparative pricing, understand your marketing plan and unique selling proposition, and develop negotiation skills.
3. Sale Price vs. List Price
Similar to days on market, the difference between the list price and the final purchase price (sale price) is another key metric to measure monthly performance.
🤔 What is sale vs. list price?
A price reduction to get real estate sold doesn’t look good and often means that the property becomes stale.
On the other hand, pricing a property too low means you’re leaving money on the table—in which case your company, agent, and client miss out.
The best agents can determine a price that both garners attention and doesn’t leave money on the table.
Generating reports that help you track the average sale price versus the initial list price is a clear way to see which agents need support and additional help.
➡️ How average sale price vs. list price impacts your bottom line
Determining the right list price can take time and often takes practice to master. However, none of this time is free of charge.
Brokers who understand this metric on an agent-by-agent basis can effectively coach them.
To save time and help develop your agents’ skill sets quickly, focus on the various aspects of the process:
- Pulling comparable listings and recent sales.
- Reviewing withdrawn and expired histories.
- Checking out current transactions that are pending.
- Considering current market trends.
4. Sales Volume
Sales volume is a prevalent success metric—and one often associated with ability. Real estate agents and brokerages alike use sales volume as a way to demonstrate their influence and performance.
🤔 What is sales volume?
An agent’s sales volume is simply the total value of all closed transactions divided by the sales price. As a number reported annually, this value is often glamorized, but it’s not always a very accurate metric of company or agent performance.
Consider two agents: The first agent closes 50 deals yearly, and the other closes 25.
When considering other relevant factors, either agent can be the top contributor to your company dollar.
The sales price, their commission plan, and your expenses are vital in contextualizing the sales volume number and how it impacts your company.
➡️ How sales volume impacts your bottom line
Understanding sales volume as a metric for success means you need a clear understanding of how your brokerage makes money.
If you don’t understand this completely, sales volume becomes a vanity metric that can lead to less-than-ideal decisions about coaching and investment.
For example, a flat-fee brokerage is often more concerned with the number of closings than with the total sales volume, while a traditional split brokerage makes a direct percentage of the sales volume.
However, if you allow sales volume to become the metric agents look at to improve, many will ultimately chase fewer deals with more significant payouts. Consider these factors when setting agent goals and negotiating commission plans.
5. Pending Commissions
Of all the real estate agent performance metrics to track, pending commissions are among the most important for any brokerage.
🤔 What are pending commissions?
Pending commissions represent earnings you’ve accrued but haven’t received yet. Pending commissions will help you forecast future revenue and make decisions based on what’s in the pipeline.
Calculating pending commissions is done differently based on how your brokerage makes money.
For example, in flat-fee brokerages, the pending commission is most often your transaction fee multiplied by the number of pending deals. Additional fees may also be collected, considering each in the same calculation is relatively simple.
Calculating pending commissions for a traditional split-based brokerage can be more complex.
The commission percentage, referral fees, franchise fees, client fees, deductions, and other percentage-based fees will all need to be considered to calculate the accurate value of pending commissions.
➡️ How the total commission generated impacts your bottom line
The value of the pending brokerage commission is the most vital metric to measure as it relates to your bottom line. This is because it reflects the bottom line for a period of time in the near future.
Knowing this value can help determine how much money you have available to invest in recruiting, creating brand awareness, or hiring a new admin, for example.
To stay up-to-date with pending commissions, it’s ideal to run weekly reports that aggregate your pending inventory across locations and teams.
You can make this metric even more helpful by comparing the figure to the same period in the previous month or the prior year. Doing so will help normalize the data and take into account seasonal trends.
6. Lead Conversion Rate
A real estate agent’s ability to turn leads into clients is one of the strongest indicators of their success.
🤔 What is a lead conversion rate?
Generating leads through advertising, referrals, and networking is just the first step. What truly matters is how well an agent can nurture those leads and guide them into actual real estate transactions.
The lead conversion rate measures the percentage of leads an agent successfully converts into active buyers or sellers.
For example, if an agent receives 100 leads a month and converts 10 of them into clients who sign an agreement, their conversion rate is 10%.
➡️ How lead conversion rates impact your bottom line
A higher lead conversion rate means your brokerage’s marketing efforts are being used effectively.
If an agent has a low conversion rate, it suggests that either the quality of leads is poor or the agent needs coaching on follow-up strategies and sales techniques.
A high conversion rate leads to more transactions, increased commissions, and a greater return on investment for your lead generation efforts.
7. Client Retention and Repeat Business Rate
Building relationships with clients in the long term can significantly contribute to your agent’s (and your business’s) ongoing success, whether it’s in commercial or residential real estate.
🤔 What is a client retention and repeat business rate?
A strong repeat business rate indicates that a real estate agent provides excellent service, maintains relationships after closing, and stays top of mind for past clients.
This metric tracks the percentage of an agent’s transactions that come from repeat clients rather than first-time customers.
For example, if an agent closes 40 transactions a year and 12 of them are returning clients, their repeat business rate is 30%.
➡️ How client retention and repeat business impact your bottom line
Client retention lowers marketing and lead acquisition costs, as securing business from existing clients is far more cost-effective than finding new ones.
Agents who build strong client relationships also generate word-of-mouth referrals, reducing your brokerage’s reliance on expensive advertising.
High retention rates indicate strong customer satisfaction, brand loyalty, and a sustainable pipeline of future business.
8. Referral Rate
Referrals are among the most powerful forms of real estate lead generation as they come with built-in trust. More than 40% of home buyers choose a real estate agent based on a recommendation
🤔 What are referral rates?
A real estate agent who consistently receives referrals is likely providing exceptional service that inspires clients to recommend them to friends, family, and colleagues.
The referral rate measures the percentage of an agent’s new clients who were referred by past clients, business associates, or personal connections.
➡️ How referral rates impact your bottom line
A high referral rate means that an agent is effectively turning satisfied clients into brand ambassadors, reducing the real estate broker’s marketing spend.
Clients obtained through referrals tend to be more loyal and easier to convert, leading to a higher closing rate and increased revenue.
9. Average Commission Per Transaction
Not all transactions generate the same revenue. Some agents consistently close high-value deals, while others focus on lower-priced homes.
🤔 What is average commission per transaction?
The average commission per transaction helps brokers assess the financial impact of each agent’s sales. The metric calculates the average commission a real estate agent earns per closed deal.
➡️ How average commission per transaction impacts your bottom line
Agents who secure higher commissions contribute more revenue to your brokerage, justifying higher commission splits and additional resources.
If an agent has a consistently low average commission, it may indicate that they’re working with a lower price range or need coaching or negotiation strategies to secure better commission rates.
10. Cost Per Acquisition (CPA)
Acquiring new clients involves marketing expenses, and an agent’s efficiency in securing business affects profitability.
🤔 What is cost per acquisition?
The lower the cost per acquisition of new clients, the more effective the agent’s approach to client generation. CPA measures how much money is spent on marketing and lead generation to secure each client.
For instance, if a real estate agent spends $10,000 on lead generation and gains 20 clients, their CPA is $500 per client.
➡️ How average cost per acquisition impacts your bottom line
A lower cost per acquisition indicates that the agent is using effective marketing strategies, maximizing return on investment. A high CPA suggests inefficiencies in lead generation, requiring better targeting, follow-up, or conversion strategies.
11. Appointment-To-Closing Ratio
Scheduling meetings with potential clients is important, but closing deals is what matters most.
🤔 What is an appointment-to-closing ratio?
This metric reveals an agent’s ability to convert appointments into successful sales. The appointment-to-closing ratio tracks the percentage of client appointments that result in a closed sale.
➡️ How appointment-to-closing ratio impacts your bottom line
A low ratio suggests that a real estate agent may meet with unqualified leads or struggle with closing techniques.
Coaching on objection handling and sales skills can help improve this metric, leading to more efficient transactions.
12. Time Spent Per Transaction
Time management is critical in real estate, and an agent who spends too long on each transaction may have inefficiencies that limit overall production.
🤔 What is time spent per transaction?
This metric calculates the average time an agent spends from client acquisition to closing a deal.
For example, if an agent works 1,200 hours a year and closes 40 transactions, they spend an average of 30 hours per transaction.
➡️ How time spent per transaction impacts your bottom line
A lower time per transaction means higher productivity, allowing agents to handle more deals and generate more revenue.
If an agent spends too much time per transaction, they may need better delegation skills, automation tools, or process optimization.
13. Buyer-To-Listing Ratio
A well-rounded agent should be able to work with both buyers and sellers. However, some agents naturally gravitate towards one side of the transaction.
🤔 What is the buyer-to-listing ratio?
This metric helps brokers understand whether an agent is maintaining a balanced approach or if their business is too heavily skewed in one direction.
The buyer-to-listing ratio compares the number of buyer-side transactions to the number of seller-side transactions an agent completes.
➡️ How buyer-to-listing impacts your bottom line
A heavily skewed ratio may indicate that an agent needs more training in handling the other side of the transaction.
If an agent primarily works with buyers, they may struggle with listing presentations. If they primarily work with selling homes, they might not be as skilled at guiding buyers through the purchasing process.
Encouraging a more balanced ratio can help stabilize your brokerage’s income and reduce reliance on market fluctuations that favor either buyers or sellers.
14. Average Client Response Time
As mentioned above, speed matters in real estate, especially because 46% of consumers expect companies to respond in four hours or less.
🤔 What is average client response time?
The faster an agent follows up on inquiries, the more likely they are to convert leads into clients.
This metric measures the average amount of time it takes an agent to respond to initial inquiries from potential buyers and sellers. It can be tracked manually or through a customer relationship management (CRM) system.
➡️ How average client response time impacts your bottom line
A slow response time can result in lost deals, as potential clients may move on to other agents that have responded faster.
Responding within the first few hours of an inquiry increases conversion rates. If an agent takes too long to respond, consider implementing automated responses or improving follow-up processes to enhance lead conversion and client satisfaction.
15. Client Satisfaction Score (CSAT)
Measuring client satisfaction is essential for ensuring that agents deliver a high-quality experience.
🤔 What is a client satisfaction score?
A client satisfaction score (CSAT) is based on post-transaction surveys where clients rate their experience with the agent on a scale of one to five or one to 10.
The score is then worked out with the following formula: CSAT = (Number of Positive Responses ÷ Total Responses) × 100
➡️ How CSAT impacts your bottom line
A high client satisfaction score suggests that an agent is delivering excellent service, increasing the likelihood of referrals and repeat business, which is highly beneficial for your brokerage.
A low score may indicate communication issues or unmet client needs and expectations. Regular surveys and feedback loops can help to improve service quality significantly.
16. Pipeline Health
While closed deals determine an agent’s immediate success, long-term sustainability in real estate depends on a steady pipeline of future business.
A healthy pipeline ensures agents have a continuous flow of new clients, preventing revenue gaps and reducing reliance on sporadic transactions.
🤔 What is pipeline health?
Pipeline health measures the number of quality active leads, pending transactions, open houses, and scheduled appointments that an agent has at any given time.
Unlike traditional sales metrics that only track past performance, pipeline health provides a forward-looking indicator of an agent’s potential success in the coming months.
➡️ How pipeline health impacts your bottom line
A strong, well-balanced pipeline is essential for consistent revenue generation for your brokerage. Agents who maintain a full pipeline are less vulnerable to local market fluctuations and seasonal slowdowns.
Supporting Real Estate Agents to Help Them See Success
As a broker, you know that an agent’s learning doesn’t end once they receive their real estate license.
Instead, you should be providing them with training and skill development so they can be successful in their real estate career. After all, educated agents are a key part of a successful business.
As mentioned above, you can use metrics to determine where your team needs training and support so that each individual can become a successful real estate agent.
Here are some areas where you should provide agents with continuous coaching and support for a successful career:
✅ Onboarding and orientation
When starting at your brokerage, new agents should be fully trained on your processes, tools, and operating procedures. Proper onboarding and training programs set agents up for success.
You can create guides and manuals for new agents, including company policies, marketing materials, and key contacts.
They’ll also need training on your customer relationship management (CRM) platform, multiple listing service (MLS), and any other software you use to run your own business.
If you use transaction management software like Paperless Pipeline, part of your onboarding needs to include giving the agent the right access and permissions.
✅ Legal and compliance training
Each real estate agent needs to receive training on any new laws and regulations pertaining to their work and the industry.
You could cover Fair Housing Laws, the Real Estate Settlement Procedures Act (RESPA), and state-specific regulations. You can also review the National Association of Realtors (NAR) Code of Ethics with them.
Importantly, you need to train your agents on how to remain compliant, especially when creating contracts and filling out legal paperwork.
✅ Sales and negotiation skills
Negotiation and sales skills are invaluable to your real estate agents. You should take steps to provide regular training in this area.
If agents can improve their negotiation skills, they can get better deals for your brokerage. It’s a good idea to send agents on professional development courses on sales and negotiation techniques.
Train them on prospecting, lead conversion, and closing deals successfully. Offer workshops on how to negotiate terms and handle objections. Consider conducting scenarios so that they can practice their skills in a controlled environment.
Give Your Agents a Productivity Boost with Paperless Pipeline
The real estate industry is a competitive environment for your agents. For them to perform well and grow your bottom line, they need support, resources, and the right tools.
Paperless Pipeline is transaction management software designed to help your agents be more productive and close more deals. We do this by simplifying and streamlining the transaction process.
With automated checklists, reminders, and to-do lists, your agents will never miss a step of the transaction process and will always be on top of their game.
Visit our website for a 14-day free trial of Paperless Pipeline and see how successful your agents can be.