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How many homes does the average Realtor close a year?

Reblogger Lenn Harley
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

This is a very interesting article by Jim Paulson.

His comment:  "The number of homes your Realtor closes a year has no correlation to how good or bad a Realtor might be"

This article shows that Jim understands that agents, brokers and their brokerage model did not come from a cookie cutter.

Courtesy, Lenn Harley, Homefinders.com, 800-711-7988, e-mail. 

 

Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate)

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Original content by Jim Paulson DB-17066

I have been a Realtor in Boise for 23 years and there is a lot of misconception out there as to how much business a typical Realtor does in a given year.  Keep in mind that averages are made up of extremes (some do nothing while others do a lot).

According to the Intermountain MLS, there are 3,099 Realtors (including assciate brokers and brokers) in the Ada County Association of Realtors effective January 12, 2015. In 2014, according to the Intermountain MLS, there were 9319 listings sold.  Since we count both the listing and the sale as separate transactions, there were 19,636 closed real estate transactions in Ada County in 2014.  That equates to only 6.01 transactions per Realtor.

2014 Ada County Real Estate Statistics

These numbers were for all real estate transactions in Ada County, so I need to adjust them so that we take out the lot sales and the commercial transactions.  That drops the number of homes (including duplex, triplex and fourplex units) sold to 8868.   

Ada County 2014 home sales statistics

Therefore, the average Realtor in the Ada County Association of Realtors would have closed 5.72 homes in 2014.  When you run the numbers of actual homes sold per Realtor, those are deceiving because many agents work on a real estate team or as a buyer's agent, so their volume is reported in the name of the team leader. 

I have tracked this number for years and 5.72 is actually a bit higher than I am used to seeing.  With the market continuing to recover and with drop in number of Realtors in the Ada County, it makes sense.

The number of homes your Realtor closes a year has no correlation to how good or bad of a Realtor might be.  If the answer was based on volume, McDonalds would have the best burger in the world and Walmart would have the best service in the United States.

Therefore, if you are looking to buy or sell a home in the Boise area, look at what matters most: their marketing plan, level of service, experience, attention to detail, and commitment to the industry.  What is your potential Realtor specifically bringing to the transaction to help you with what might be your largest financial decision of 2015. 

Jim Paulson, CRS, AHWD, EcoBroker, GRI, SRES, ePRO, SFR
Owner/Broker - Progressive Realty Corporation
Specializing in Idaho Real Estate
http://www.IdahoMLStours.com
Http://www.Progressive-Realty.info

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Comments(5)

Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Great reblog and Jim knows what he's talking about.  I remember years and years ago prior to being a licensee, I had a "heavy hitter" want to list my home.  His broker told me . . . "If you do list with him, you'll never hear from him again."  The heavy hitter's team would be doing all the grunt work, in other words.  So much for having an agent represent me.  I would have been just a number.

Jan 12, 2015 03:03 AM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Very good point - volume never equals quality.  Every operation is different, and some very large entities provide terrible service to a large quantity of poeple.  Others provide amazing service to only a handful.

Jan 12, 2015 05:44 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Lenn he makes a good point in this blog.  The numbers do not always tell the whole story.

Jan 12, 2015 09:51 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Carla.  I am familiar with mega brokers here who have "heavy hitters" that will make personal contact to "get the listing".  Then the operative folks are the agents on their "team".  I have no problem with their business model.

John.  So is the way with various business models and licensees.

George.  Oh my goodness.  I could write a book. 

 

Jan 12, 2015 08:56 PM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Lenn, I wish you would write a book. I would be first in line to buy it.

I agree with you that the "Heavy Hitter" model is viable. I, also have no problem with it.

Bill Roberts

Jan 13, 2015 12:46 AM