One of the questions we receive often concerns list price to sales price ratio. I can’t stress enough how unimportant this statistic is. Let me explain why;
We do not force sellers to list their property at a certain price. We will take the listing at any price the seller sets. As a result, the seller has free reign over the price adjustments of the property. Now, a typical Realtor(R) will never allow this to happen. Their fee is contingent upon the property selling. All agents are taught not to take over priced listings. Thus, I can’t help but point out the conflict of interest. The seller’s goal is to receive the highest and best price. The agents goal is to convince the seller to market the property at a price low enough to guarantee a sale. (otherwise, they don’t get paid) I have seen agents try every trick in the book to convince a seller to lower their price. Below is an article on the listing presentation and over priced listings.
When you examine list price to sold price, pay close attention to why this # may be abnormally high for a certain agent. Are they listing homes too low to guarantee a quick sale? An expired listing from the sellers standpoint may not be the worst thing in the world when they are trying to acquire the highest and best price. On the other hand, Realtors(R) will do anything to avoid expired listings. From the typical Realtor(R) viewpoint, an expired listing is a waste of time and marketing money spent.