Do you currently have an overpriced listing, or have you shown over 30 properties to your buyers and they still haven’t written an offer? If so, chances are that you are letting thousands of dollars slip through your hands every year due to your simple inability to control opportunity costs by saying “no.” When most real estate agents evaluate their business, they track their GCI (gross commission income) and net income, but very few agents consider their opportunity costs. An opportunity cost is, “the loss of potential gain from other alternatives when one alternative is chosen.” For example, assume you must choose between working with a buyer or holding a Sunday open house. If you choose to work with the buyer who fails to purchase, you missed the opportunity to generate listings and buyer leads from holding the open house. Understanding how opportunity costs risk your business To illustrate how opportunity costs work, assume that you earn $60,000 per year. This mean…
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