Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What should brokers set up monthly after establishing an annual operating budget?

1. Financial goals

2. Benchmarks

3. Expense reports

4. Sales projections

The correct answer is: Benchmarks

After establishing an annual operating budget, it is essential for brokers to set up benchmarks on a monthly basis. Benchmarks serve as measurable standards for evaluating performance and progress towards the goals outlined in the operating budget. By creating these benchmarks, brokers can assess where they stand financially and operationally compared to their budgeted targets. This ongoing evaluation allows them to make timely adjustments in their business strategies and practices if they notice discrepancies between actual performance and expected performance. Setting benchmarks helps ensure that the financial goals of the brokerage are being met throughout the year. They provide a framework for tracking key performance indicators, which could include metrics related to income, expenses, and overall productivity. While other options such as financial goals, expense reports, and sales projections are important components of operating a real estate business, benchmarks specifically facilitate ongoing monitoring and evaluation of performance related to the budget. This makes them critical for ensuring the brokerage stays on track throughout the year.