#4 - What Is Your List-To-Sale Ratio?
|Posted by: Intercity Realty Sat, Aug 8th / 15|
10 Questions To Ask When Hiring A Sales Representative
The smartest home buyers and home sellers prepare themselves during the real estate sales representative selection process. Last week we focused on:
Keep in mind, during this selection process, as you are interviewing sales representatives, they are interviewing you as well. They need to ensure if you are serious in your endeavor of buying or selling. Do not be alarmed. Good sales representatives are always judicious in client selection.
So what exactly should smart consumers be asking sales representatives?
This is precisely what we unveil throughout our article series "10 Questions To Ask When Hiring A Sales Representative." Let's continue with your 4th question:
#4 - “What Is Your List-To-Sale Ratio?”
Let’s first understand what a List-To-Sale Ratio is.
The List-To-Sale Ratio is a popular and important sales metric used by real estate sales representatives to determine the local real estate market condition of properties selling for higher or lower than the asking price set by sellers or other agents.
Buyers, sellers and real estate agents can use the ratio to determine a strategy for price negotiation. So what you need is the ratio expressed as a percentage. Here’s how you do it: Take the property’s final list price and divide it by the property's actual sale price. You will receive a percentage. So a property listed for $500,000 (actual sale price) selling at $479,000 (final list price) has a List-To-Sale Ratio of 95.8%.
Exceptional sales representatives should hold a track record for negotiating sales prices that are very close to list prices. An average List-To-Sale Ratio of less than 100% tell us that in this particular market, sellers generally accept less than their asking prices.
It is important to keep in mind that the final sale price does not always reveal the entire portrait of a home sale transaction. However, the more quality questions you ask, the more clear the picture will be.
In the end, you want your real estate transaction to be memorable, hassle-free, and to achieve the best purchase or sale price. It always starts with asking the right questions.
By Rick Daredia, Contributing Author for Intercity Realty