What's Better? 99% of $500K or 97% of $520K

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

 

The important amount is what you put in your pocket

Key Points

  • List price/sales price ratio can be a misleading stat to compare agents with
  • If you tend to list low, your list/sales price ratio will be better
  • Do they use the original list price or the list price when it went under contract?

 

Some agents use the sales price/list price ratio as proof that they are better than the average agent.

An agent might claim to sell his listings for an average of 99% of list price. But does that really net the seller more money?

Maybe the “99% agent” tends to under-price their homes.

Which is better?

99% of $500,000

or

97% of $520,000.

I’ll do the math for you.

99% of $500,000 is $$495,000

97% of $520,000 is $504,400

The “slackard” agent who only gets 97% of list price actually gets the seller $9,400 more.

With this statistic, you also have to be aware of what "list price" actually means.

Is it the original list price or is it the last list price when it went under contract after a series of price reductions?

If an agent lists a home at $550,000 and then gets the seller to reduce the price to $500,000 and it then sells for $500,000, some will say that it sold for 100% of list price.

Is that an accurate representation of what actually happened?

 

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 uses this statistic in their marketing, just cross them off your list. They are using a stat that probably doesn't give you a true picture of whether or not they actually sell homes for more.  

The important stat is how much money is left in your pocket after all is said and done.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Posted by

 

 

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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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Hi Tim, There are many things to consider besides the selling price. Terms and conditions can affect a seller's bottom line drastically.

Jan 08, 2018 05:48 PM #1
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is an important topic.

The bottom line is what really counts.

Jan 10, 2018 06:26 AM #2
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