Friday, March 9, 2007

What is your Realtor’s List-to-sales Ratio?

As many of you have noticed, Minnesota’s real estate market has changed. Throughout the late 1990’s and into the early 2000’s it was a seller’s dream market. It seemed like as soon as a sign was posted in the yard, a SOLD sign was attached. Not so anymore, Minnesota is in a full fledged buyers market. So what does this mean for sellers? Although many things have to be considered, there is a new important question to ask your prospective real estate agent: What’s your List-to Sales Ratio?

Some agents seem to have every house on the block or in a neighborhood listed. Their signs are posted in yards throughout the town. Their ads are in your local newspaper and in your mailbox. This is may be an indication of a successful Realtor. But the big question is “Did the homes sell?”

In this slower buyer’s market, there are many more homes on the market than buyers. Do you want an agent that can successfully get you to sign on the dotted line to list your home or would you prefer one who will actually get the home sold? If a potential agent is unsure of their ratio, work with them to figure it out.

Ask how many homes they listed last year.
Next, ask how many listings they sold. (Make sure that the agent doesn’t include sales of homes to buyers.)
Divide the listings sold by the total number of listings to get the ratio.

If the ratio of listings-to-sales is less than 50%, you might want to select a different agent. Successful agents won’t sell every home they list, but their success ratio will be over 70%, even in a slow year.

More tips on how to select a real estate agent. Part One. Part Two.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor who has a sale-to-list ratio of above 70%, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007