How to Measure a Listing Agent's Performance

Posted by Dan Miller, REALTOR on Friday, May 20th, 2016 at 5:12am.

Sometimes in real estate we get too wrapped up in quantity. We tend to measure ourselves by the number of closings or the volume of sales that we have in a year. As a home or condo seller, your concerns are more about quality. For example, when you hire your listing agent, how do you know you're getting a good one? Fortunately there are 3 simple measures that will help you answer this question. 

View our home selling results here

Measure #1: Listing Success Rate

A listing can either sell or it can expire. This simple measure identifies the percentage of an agent's listings that actually sell.  We calculated the listing success rate for the entire South Central WI MLS on May 17th and found that the average listing success rate in 2016 is 68%. From January 1st through May 17th, 68% of all completed listings sold. The remaining 32% expired. If you're in the process of hiring a listing agent, we recommend hiring one whose success rate is 85% or greater. 

Hiring Listing Agent - Listing Success Rate  

Measure #2: Days on Market

The days on market statistic measures the number of days that elapse from the listing date until the accepted offer date. Our review of the 2016 data shows the average days on market across the entire MLS is 88 days. We recommend hiring an agent whose average is one month or less. That's because listings that sell quickly tend to sell for a high market price. Listings that sit on the market can become stale and sell for a much lower market price. 

Listing Agent Performance - Days on Market 

Measure #3: Sold Price % of Original List

Agents with a high average days on market tend to sell their listings for well below the original list price. That's because listings that have been on the market for a long time tend to go stale after undergoing one or more price reductions. Our review of the data shows the average MLS listing sells for 94.6% of the original list price.. We recommend selecting an agent whose sold to original list price ratio is 97% or higher. 

Measuring Listing Agent - Sold Price to Original List 

More Ways to Evaluate a Listing Agent

There are other ways to evaluate a listing agent which have nothing to do with data at all. One quick way to evaluate a listing agent is to apply the "eye test" to the agent's current and recent listings. When you review the agent's listings, look for evidence of professional staging, professional photos, and professional video. Check for listing remarks that truly sell the advantages of each property. Also look for supplemental marketing materials that outline the features and improvements of each home. 

Another important step is to interview the agent's current and recent clients. Ask questions that center on communication, customer service, market expertise, follow through, negotiation, and advocacy. 

Yet another important step is to ask the agent you're interviewing a few important questions. We'll cover these interview questions in a future post. 

Are you currently interviewing listings agents? We'd love to learn more about your goals. Contact us for a complimentary consultation that will help you start moving forward in a positive direction. 

This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
610 Junction Road #205, Madison, WI, 53717

Leave a Comment

Format example: you@domain.com
Format example: yourwebsitename.com

Sign up for email updates