Key Item Left Out in the "I sell homes faster" claim

By
Real Estate Agent with Atlanta Communities Real Estate Brokerage GREC #208281

 

Expireds and Withdrawns Make the Stat Meaningless

Key Points

  • 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 It’s really meaningless because the listings that expire or are withdrawn are not included.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.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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About the Author:  Tim Maitski has been a full time Realtor since 1999. He has sold several hundreds of homes in areas around metro Atlanta.  Tim started with RE/MAX Greater Atlanta and is now with Atlanta Communities Real Estate Brokerage.

 

Along with blogging on ActiveRain, he provides one of the best real estate websites in Atlanta at www.HomeAtlanta.com .

 

His proprietary  "Maitski Line Reports" chart out the absorption rates over the past 14 years in 37 different market areas.  Know when it's a good time to buy or a good time to sell.    

 

His online Property Tax Calculator allows you to compare property taxes in many counties and cities around the Atlanta area.  He provides the Atlanta MLS Power Search Tool that allows searches of homes using over 35 specific criteria.

 

Over the years, Tim has optimized his business so that he now can offer a huge 50% commission rebate to his buyers.  The more experience one gets, the easier the job becomes.

 

Tim also has a "Five Days to Sold" System that uses an intensive marketing blitz to create a showing frenzy that creates urgency and offers.

 

Tim is always looking to LinkIn with anyone who is interested in building their social network.

 

View Tim Maitski ●Atlanta Realtor●'s profile on LinkedIn

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Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

For those agents that want to, there are so many ways to manipulate data to make themselves look "best" when the true picture is far from what they present.  There are so many extinuating circumstances (I took on some listings that would be REALLY tough to sell, and I sold them...but my DOM was long because I needed a unique buyer, etc.).  It might be the very best agent for the job doesn't have the "best" stats.

Jan 07, 2018 02:01 PM #1
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

We run into the 'claims' issue here all the time too, Tim. I pull up BrokerMetrics, which shows every bit of that data, right in front of the sellers! We have one agent who makes that claim all of the time and sadly, sellers don't always ask for clarification.

Here, it's been a very long time since those of us who are active agents have actually had an expired listing though - they have been selling like hotcakes for the past 3.5 - 4 years! 

Jan 07, 2018 09:10 PM #2
Rainmaker
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Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

Any agent that has to brag about anything in their business...move on to the next!

Jan 08, 2018 08:07 AM #3
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Oh, that's terrible, Tim. It's just like the new businesses (offer pad, I believe is one) - that 'guarantee' to sell, not based on skill but, based on severely under-pricing, leaving a LOT of the sellers' money on the table. I always wonder what makes sellers choose these types of services. 

Happy Monday!

Jan 08, 2018 11:58 AM #4
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