Getting ready to list your home for sale? You are told you should ask the Realtors you meet, “What’s your average list to sale price percentage?”
This is probably one of the most useless pieces of information one could use in determining their Realtor.
What if a buyer offers more on a home to have their closing costs “covered”? Sure, the agent “sold” it for “more” but that owner probably netted in their pocket less anyway. Now, that agent might say they sold that home for 103% of list price. Does that mean they will sell your home for more? I would say no but I will let you decide.
What is list price anyway? The number that it was listed for when it sold, or the original price? What if that owner started at 105k, but dropped the price to 95k, then sold it for 100k, did they sell it for 105% of list price. Does that mean the agent did anything special to sell that home for as much as they could? Maybe. But did they really sell it for 105% of list price?
I understand there are MLS rules but what if a home was listed at 100k, got an accepted offer at 95k and the agent changed the list price to 95k? Forget MLS rules for a moment, now that home sold for 100% of list price. But did it really? NO!
Here’s the bottom line. The whole thing about the average list to sale price ratio is whatever % is almost useless. What should matter is that agent’s knowledge about your marketplace, their ability to market your home for whatever price is fair market value, and how you get along with that agent; i.e. are they a good fit with your personality.
Some numbers matter. List to sales price in my opinion is not one of them. Look out for more posts about bringing real back to real estate.
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