Estate agencies could increase their fee income by 46.4% from the same number of valuations by improving four key performance metrics by 10% each, according to analysis from property brokerage Moveli. The firm has introduced an online calculator allowing agencies to model potential earnings based on their conversion rates and fee structures.
The calculation is based on an agency with an average property value of £1 million, a 1.5% fee, a 30% valuation-to-instruction conversion rate, and a 50% listing-to-sale conversion rate. Increasing each of these metrics by 10% could lead to the 46.4% rise in expected fee income per valuation. This could also enable an agency to achieve the same fee income from approximately 32% fewer valuations, according to Moveli's calculations.
Ben Littlewood, co-founder of Moveli, stated that agents often prioritise generating more valuations over maximising returns from existing opportunities. He noted that "winning a slightly higher-value instruction, defending your fee and improving conversion rates can have a powerful combined effect."
The online tool is available free to use and applies to percentage-fee estate agency businesses generally. The launch occurs as estate agents increasingly adopt technology to enhance operational efficiency.