How to evaluate listing agents - superstars vs mediocre

Question

Hello,How does one evaluate a real estate agent/broker? Is it reasonable to ask for a MLS printout with the following:1) average days on market; 2) percentage removed from market without selling; 3) How close to listing price the properties sold at; 4) How few "concessions" were given by the seller. Also, can they print out the statistics of their competitors? Any other questions I should be asking?Thank you!

Russell Brazil · Answer

This information in a vacuum will not enlighten you to who is a good agent...and may actually give you a false impression.  Let's take an example. Neighborhood A sells very quickly and over asking price. Neighborhood B always sells under asking and takes 3-4 weeks to sell.  Two agents working these separate neighborhoods prices there property appropriately for the market, meaning in A they price it under what they expect to get, and in B they price it over what they expect to get.

So house in neighborhood A sold by Realtor A sells at 105% of list price in 4 days.

Then house in neighborhood B is sold by Realtor b for 95% of list price in 30 days.

Does that information give us an accurate view of who was the better agent? No both simply did what the market demands in those areas.

Remember there are lies, damned lies, and statistics.  Stats can give us a false narrative if you do not understand how to properly interpret them.

J Scott · Answer

I wrote this about five years ago, but it still applies:

https://www.biggerpockets.com/renewsblog/2010/03/0...

Pat S. · Answer

@Sonia T.,

Although I LOVE quantitative analysis, I think the better questions to ask are qualitative and focus on how will they add value to your transaction either by making the process easier or getting you a better price or faster close.

You might considering asking them to describe what they will do different than the "commodity" agents out there to make your sale is a smooth one.  Do they offer unique marketing features that others don't? How do they educate you on the process and how will they keep you informed of the progress? Will they be managing all the critical tasks for you or are you expected to stay on top of things to keep everything on schedule? Do they have unique experience or certifications that benefit you: like negotiation expert, staging expert, etc? And probably one of the most important things is what @Eric X. said "Just make sure you feel comfortable with them and they are competent."

Pat

Matt Cramer · Answer

As mentioned earlier stats can lie. However the stats I would be interested in is what % of homes they list sell and how many homes a year they are selling. Do they use a professional photographer? Stager? Etc. Do they know the market stats in your area and can speak competently about the average list to sale price ratio as well as the days on market in that area. How quick do they answer their phone or return calls if missed? You don't want an agent who isn't responding quickly to buyers calls.

Steve Vaughan · Answer

I would try and utilize a listing agent or agency that is in my 'network'.  If the best advice is 'to make sure you are comfortable with them and they are competent', employ one that also does comps for and services investors.  This REI thing is about relationships.  I use the same title co, attorney, buyers, agents, material provider, painter, GC, barber, etc over and over once I find the star.  Refer to them and bring them business when you can and they will do the same for you.  It can be tough to discover the star of each industry in the beginning @Sonia T.  Get referrals, check folks and with folks here on BP and vet them out like you're doing.  It's smart to ask the question here. There are a few active investors in your area I could mention to chime in if you like with advice.  Good luck!

Eric X. · Answer

If you do your own research and study the basic ins and outs of selling a home, many different agents will work.

Agents were more valuable before the internet before anyone could just go to zillow or redfin to look at homes.  With the internet, almost all homes have the same exposure.

Things they should know

1.)Pricing

2.)CMA

3.)Your neighborhood

The things you are asking for has too many variables and may not reflect the agent but the sellers they represent.  Some sellers may refuse to lower the price in some cases and will stay on market forever and eventually not sell. Also selling fast doesn't mean it is good for the seller.  Selling something fast at the correct price is..

Just make sure you feel comfortable with them and they are competent.  Unless you have a specific home (mansions or complete fixer uppers), many agents will fit your needs.

Sonia T. · Answer

Easier said that done... yes, these marketing plans from both high performers and mediocre - looks like they came from the same printing machine... :-)

Sonia T. · Answer

Seriously, I went to an open house that had a trash can on top of the fridge (and MLS photos shows it too).

I feel sorry for the good/ethical RE agents/brokers out there...

Kevin Fox · Answer

They may not be the easiest to come by, but that is the type of agent who is truly worth the money you will be paying them.

As for the marketing plans looking uniform across the board, that should be your first red flag!  If the agent lacks the skills/urgency to differentiate THEMSELVES, why would you think they have what it takes to make your property stand out?

Kevin Fox · Answer

As others have mentioned, those stats will not be the best indicator for success in selling your home.  The members above me really did a good job pointing out some of the key aspects to consider, so I will just add one piece of advice.

Do NOT fall for the "marketing plan" that is almost entirely revolving around the number of sites they will be using to advertise your home.  I am not completely certain about the MLS in your particular area, but for the most part, the MLS providers have a built in syndication system that send the sale info for every property listed to hundreds of sites.

If you speak with an agent that is essentially relying solely on that syndication, a yard sign, and other "passive" forms of marketing; keep looking.  Find an agent who is willing and able to gain some sweat equity in the sale and put in the work necessary to go GET a buyer for the property, rather than one who is taking the "wait and see" approach and letting the buyers just come to them.

How to evaluate listing agents - superstars vs mediocre

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