Defining an Effective Listing Agent
An agent is usually only as good as the numbers they produce. And by numbers I don't mean how many properties they have sold or what kind of market share they control. I mean when it comes to getting you the most money and in the shortest possible timeframe what matters is how effective an agent will be. Most of us agents talk the good talk--that's part of why we got into sales--but fewer can actually produce the results to back it up.
As I said above, many agents and agencies will talk about “market share” and “market volume”. But how will these statistics translate to get you the best return on your investment? The answer is that they won't, necessarily.
Numbers you can take to the bank
The two most important factors in an assessing a listing agent's effectiveness are 'average days on market' and 'original price to sale price ratio'. These two statistics are a gauge of effectiveness that literally translate into time and money.
It's important to note that these numbers can be skewed, especially 'days on market' if a broker has a listing they inherited from another broker (the days on market meter doesn't reset in MLS until after 90 day off market) or if they have a listing in a complex where they have multiple units marketed at once and being sold over a greater period of time. So there are anomolies and it's important to make that distinction.
Days on Market
Regarding "days on market", time is money. Period. The gap between asking price and sale price widens as time passes. The longer your property sits, the less likely it will command the urgency a buyer needs to put their best offer on the table. In Greater Boston over 2010-2011, the average listing’s days on market was 91 days. By comparison, since 2005 and through 2011, my properties sell, on average, in 39 days–that’s less than HALF the market’s average.
Original/List to Sale Price Ratio
Original price or sale price to list price ratios also tell a story. They usually indicate, among other factors, an agents’ accuracy with regard to pricing a property correctly. Lots of agents will “buy” a listing by suggesting a price point that is unrealistic.
In Greater Boston, from 2010-2011, the average list to sell ratio is 95.8%. The average original list to sell is 92.4%. My performance since 2005 shows 97.9% and 96.1% respectively. It means that on average (if the median sale price is $395,000), I am saving/earning my clients between $8,295 and $14,614 per listing. And that you CAN literally take to the bank.
I didn't post these numbers to brag (well maybe a little). I want to express the importance of using the right analysis and the right strategy to best sell a property. I'll also be the first to say that my numbers aren't perfect--and there are some really good agents out there--but I am far above the market's averages and ahead of the curve. Allowing me to list your property puts you in an excellent position to successfully sell your property and to walk away knowing you got as much as you could have. Take a look at what my clients have had to say or take a moment to watch my presentation on my phliosophy behind effecitive listing, marketing and selling.
Contact me and we can get the ball rolling. Even if you're thinking about selling months or years down the road, we can assess where in that timeframe will make the most sense for you.
Here are some links you may find helpful: