How to determine a subdivision turnover ratio? How many homes sales occur in the area per year?

The real estate business has different types of farms, relating to any sub division of a demographic group. They can include different professions, out of state owners, cultural groups and many more types. A farm in real estate helps in dividing the different market present locally. It helps an agent to focus on a specific niche to produce the best possible results. You can know more about it on Platinum Real Estate.

The turnover ratio of a farm should be at least 12 to 15% to be profitable.

It is also necessary to have the right information to calculate the turnover for a specific subdivision. The important information includes:

  • The name of a subdivision
  • Number of homes present in the area
  • The total sales in the last year
  • Turnover ratio

To make a smart decision, it is important to know more about the real estate market by visiting my website Luther Ragsdale.com

Determine a subdivision turnover ratio

Determining a subdivision’s turnover ratio is extremely important. The percentage of turnover can be calculated by dividing the total number of homes in a particular subdivision by the total number of closings in a particular year. To know more about it, you can also download my e-book free of cost. You can also visit Platinum Real Estate for further details.

Let’s take an example, if a neighborhood has 200 homes and on an average, 20 homes are sold each other. Then, by dividing the total number of homes by the number of houses sold each year, we get a turnover ratio of 10%. By inversing the formula we used, we can calculate the frequency of sale of houses in a given neighborhood. For the numbers given above, we get a 1/10% which shows that the average home ownership duration will be ten years.

How many homes sell in the area per year

It is important to calculate the exact number of houses sold by one agent in a year. It is also very important to know the exact statistical figure of the number of houses sold and the number of total real estate agents present. You can get more information about the sale of real estate on Platinum Real Estate.

The statistics of NAR (National Association of Realtors) show that there are around 2 million real estate agents in the United States, with around 5600000 houses sold annually. Get more information online by visiting Luther Ragsdale.com

By dividing the number of total real estate agents with the number of houses sold, we can find the total number of houses sold per state agent annually.

If you want to learn more about the subdivisions and turnover ratio, you must subscribe to my YouTube channel for new tips and you can also visit my upcoming event ‘To List is to Last”.

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