Expireds and Withdrawns Make the Stat Meaningless
- Expired and Withdrawns aren't included since the Days on the Market Is unknown
- Quick sales might be an indication of habitual underpricing of listings
- I would focus on net profit
Some agents claim that they sell homes so many days faster than the average agent.
Here’s the trick to be aware of with this stat. It’s really meaningless because the listings that expire or are withdrawn are not included. Think about how this would affect this stat.
Let's say that agent "Quick Sell" had ten listings last year. Five sold after 30 days on the market (DOM), but the other five expired unsold after being on the market for 180 days. Since the expired listings never sold, they aren’t included in the Days on Market statistic. It's like they never existed.
So agent “Quick Sell” claims that his average sale is only 30 days on the market even though half of his listings never even sold.
His competitor also had ten listings last year. But all ten of them sold after 40 days on the market. He had no expired listings, unlike agent "Quick Sell."
Agent “Quick Sell” touts that his “Days on the Market” is 25% better than his competitor, 30 days vs. 40 days, even though half of his listings didn’t sell at all.
Agent "Quick Sell" is technically correct in his claim for his listings that have actually sold but shouldn't the expireds and the withdrawns be included with their Days on the Market?
Another point to consider. Is getting a home sold really quickly such a good thing? I can get quick sales really easily if I'm skilled in getting my sellers to list it at a low price.
Maybe a quick sale is important in some cases but I think ending up with the most profit in your pocket is more important to most folks.
My Simple Rule of Thumb for Sorting Out Agents
Here's my simple rule of thumb that I give people to help them sort out agents.
Any agent who makes a claim about being able to sell homes faster, just cross them off your list. They are using a stat that really doesn't give you a true picture of whether or not they actually sell homes faster.