Archive for the ‘choosing a realtor’ Category

Picking the Best Agent: One with LOTS of Listings, or FEWER Listings

Tuesday, March 8th, 2011

by Sean Hess (Sean@StAugTeam.com), Broker and Manager for St. Augustine Team Realty (www.StAugustineTeamRealty.com).   Join us on Facebook.

Picking an agent is like picking the lotto: it's not about the numbers, it's about the right numbers.

Picking an agent is like picking the lotto: it's not about the numbers, it's about the right numbers.

So you’re looking for an agent but you’re not sure about which one to chose, the mega-lister or the agent with fewer listings.

What I would be looking for is not the amount of listings listed, but the listings sold.

“The factor that I would be looking at is the conversion ratios of the brokers you are interviewing” said Tom Matthews, a Realtor from Weston, Massachusetts, in a recent online post. “There are some agents that are amazing listing agents, but not selling agents. That means they get the property listed, but can’t get it sold.”

In other words, if an agent with 50 listings at any one time is expiring out 25 and selling 25, that agent isn’t good enough for your home.  C’mon…they succeed half the time? 

Those type of numbers are basically “luck.”  You, the reader, could do that well.  Seriously, if I give you 50 random residential listings you’ll sell half.   

But if you have an agent that lists 12 and sells 10, that’s an agent who is paying attention to their inventory.

And the reason this type of agent is so good is because they have to be.  If they don’t sell 80%-90% they won’t eat.  They don’t have the luxury of a full stable of homes to fall back on.

But getting back to that agent who lists 50 and sells 25…from a real estate standpoint it’s not a bad strategy.  After all that is 25 sales. 

The agent who does 10 sales out of 12 is the better agent but has half the income.  So who would you be if you were a Realtor?

And as a Broker I honestly would love to have both types.  They both keep me in business.

But which one is the to sell your home? 

I will tell you this, the one that sells 10 out of 12 will know their conversion rate exactly, to the percentage point.  The one that sells 25 out of 50 won’t have a clue what their conversion rate is, I guarantee it.  So there’s your starting point.