Leverage Your Statistics in Real Estate
I have seen a lot of real estate agents that do not take advantage of opportunities to leverage their statistics to show the value they can provide buyers and sellers. Statistics are something that every real estate agent can use to back up their marketing and show buyers and sellers their value proposition. This is true whether you are a new agent or an experienced agent.
Prove Your Marketing
If your marketing tells sellers that you sell homes in less time or for more money, you better be able to prove it – and you should. You need to pull the market averages. If the average home in your market sells in 60 days on the market but you are selling homes in 30 days, have your marketing pieces point out that you sell homes in half the time as the average agent. If you sell homes for 98% of list price, but the market average is 96%, market the fact that your listings sell for 2% more – or better yet, give a specific dollar amount. If the average agent in your market sells 6 homes a year but you sell 18, why would you not market that you sell three times as many homes in a year as most agents.
Use Statistics When Competing for Listings
If a seller is interviewing you and another real estate agent, research the statistics of the competing agent. No, this is not against the Realtor Code of Ethics. The seller deserves to know the differences, and if your results have been historically better, I believe there is a moral and ethical argument that compels you to point this out. So what should you look for when researching another agent’s statistics. I look at the following:
- The number of homes they sell overall
- The number of homes they sell within that area and/or price point
- Their average days on market
- Their average sold price to list price percentage
- The number of homes they have had expire or withdrawn
There may be other statistics worth looking at, but at a minimum comparing yourself to the other agent in these categories provides the seller with information they deserve, and that hopefully makes you stand out if you are better at providing more value to your clients. These statistics can also justify the commission rates you charge. If a seller can expect to net a higher amount in less time if they use you, then they should have no problem paying rates that justify the extra value you can create.
What If You Are New?
If you are new: yes, you should still use statistics. If you do not have any sales completed, obviously you cannot lean on your own statistics, but that does not mean you cannot use others. Research the statistics of your brokerage and use those. Or if you are an agent on a team, leverage the statistics of the team.
Buyers Care About Statistics Too
Although most of the situations I have discussed involve sellers, you can also use statistics when marketing to buyers or competing for their business. So what do buyers care about?
- Can you help get them homes for less money? What is your buy side sold price to list price average compared to the market average? If you are in a competitive market, you should separate out homes on the market less than 2 weeks vs. those that are not. This will account for multiple offer situations.
- Can you find them homes not on the market? How many homes with zero days on market have you sold?
- How many buyers have you helped vs. the average agent?
Know Your Statistics and Know the Market
Make sure you know your own record. Know how the market is doing as well. Not only does this make you look like an expert, but it gives you the ability to show clients where you stand in regards to the market and how much value you can provide.
Want more Realtor advice? You can purchase the HyperLocal HyperFast Real Estate Agent and the Companion Guide for the price of one. Exclusive autograph included!
With purchase of the HyperLocal HyperFast Book Bundle, you will receive 2 amazing real estate books for the price of one – exclusive autograph included!
- The best-selling HyperLocal HyperFast Real Estate Agent paperback
- The HyperLocal Hyper Fast Companion Guide paperback