Broker claims "A" listing results. Actually more like a "D."

By
Real Estate Broker/Owner with Northern Virginia Homes - FRANKLY REAL ESTATE Inc

I won't call this brokerage out by name (even though they would like the Google Juice.)

I just read a blog post from another firm that rants and raves about how they are able to get Thousands More (versus the average agent*) for their customer and in fewer average days...

Sounds great right? Maybe I should even list my Mom's house with them!

So I thought, let me see how many failed listings they have. Because if a home doesn't sell, it wouldn't count toward their stats, right?

This is what I found from the first data range I reviewed

Sold= 15

Withdrawn = 9

Out of 24 total concluded deals, 15 were sold and 9 did not sell with this firm.
A 62.5% "success" rate!! ie. a 37.5% failure rate

In most schools that is a "D"
 
How does that compare to FranklyRealty.com stats?
 
Same timeframe:
Sold= 15
Withdrawn= 1 93.75%
 
Success rate! An "A" in most schools.

Conclusion: You are 9 times more likely (1 vs 9) to have your home listed and withdrawn if you use this other company.
 
Amazing how data can be twisted. You are smarter than a 5th grader and smarter than the headlines.
 
And the * above refers to how their data was comparing to the "average" agent.
 
If you read this blog enough, I hope you will start to see the value that a good/great agent can bring to the deal. And no... I'm not too busy for you (video).

Frank B. LLosa, Attorney at Law (but NOT YOUR lawyer)
Broker FranklyRealty.com DC, MD, VA
Licensed to practice law only in NJ.
 
Photo Credit of "F" image.
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Rainmaker
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David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
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Love it! Great post and tough to talk smack about facts!

Kudos

Jun 07, 2012 01:16 PM #1
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Frank - statistics is a wonderful tool allowing to manipulate the data if there is a desire. There are several companies that claim they are number one in the area. One by listings sold, another by the number of transactions, then another by the volume, then yet another one by the number of employees...

Jun 07, 2012 02:04 PM #2
Anonymous
Jen Evans

Hey, Frank!

We just experienced a listing like this as buyers. The house was listed for well over market value and had only been on the market 4 days. We loved the house and wanted to put an offer in but we were up against another buyer. Our agent (not a Frankly agent, found this site later, sorry!) encouraged us to just walk. She said, "Let the other couple put their money down for inspections, appraisal etc...only to find out that they won't be able to get financing for the loan." She had even consulted other realtors that knew the market in that area well and when she told them the list price and the neighborhood they LAUGHED!!!

This listing agent is doing harm because we were well qualified buyers and the sellers could have sold their home quickly for fair market value. Instead they will go under contract, probably have their buyer walk and then have to start all over again. It seems a ridiculous and harmful practice to me but yet these agents continue to do it. 

I'm so grateful for your site and for informing me of all the ins and outs. I love my realtor and she's fantastic but I'm a detail person and I like to be in the know and involved. Your work makes my first home-buying experience enjoyable. Thank you!


Sincerely,

Jennifer

Jun 10, 2012 07:52 AM #3
Rainmaker
138,114
FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com
Northern Virginia Homes - FRANKLY REAL ESTATE Inc - Arlington, VA

Thanks Jennifer.

How do you know that the other buyer is paying near full price? Maybe they offered market value and will be getting it for that.

Another option is to put a back up offer. Why let it come back on the market after failing with the first buyer? Why not have it go to you, as per the contract, after the first buyer loses it.

 

Also lets say you offer this fair market value. What happens if it doesn't appraise? Lets say list price is $600k. Contract price is $590k. Your back up offer is for $570k. If it appraises for $560k and the seller doesn't drop to $560k, the SELLER can say no... and give you the home "under contract". But if the appraisal again comes in at $560k, then they can say no to you. So why wouldn't they just say yes to the first buyer? Hum, I know a little bit of cirular logic, but bottom line, ask your agent about a back up offer for the amount you want to pay and cross your fingers. 

Jun 10, 2012 04:17 PM #4
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Rainmaker
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FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com

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