Traditionally, it's been very difficult to put numbers behind the impact that a service provider can have on a real estate deal. We know that we want to surround ourselves with the best agents and attorneys, and that should result in the most succesful transaction. But, what is the real upside of working with someone who is a true expert in the field of real estate?
13% More Like to Sell
A study performed by MIT, found that homes sold by agents with more experience were 13% more likely to sell than those marketed by lesser experienced agents! With 4.3% of homes already failing to sell nationwide, as reported by Trulia, that would bring the chance of failure to sell with an inexperienced agent even higher. With a typical engagement being 6 months, that's the difference between missing an entire buying season and having to wait another year to sell, or having to slash the price of your home in the off-season.
Up To 15% Greater Discount
Another study, performed by the Journal of Real Estate Research, Price, Place, People, and Local Experience, found that inexperienced buyers did not receive discounts, compared with experienced buyers obtaining 13% to 15% discounts! If you factor in the average price of a home in the US being $258K, that's up to a $38,700 difference in price when working with an experienced buyer.
32% Faster Transaction
When it comes to the time it takes to sell, the Journal of Housing Research found that homes sold by experienced agents sell 32% faster than those sold by lesser experienced agents. The average listing on Zillow in 2018 closed within 68 days, which means that a 32% faster sale means that the average home sells 3 weeks faster with an experienced agent!
If we take this and apply it to pricing, we know that the additional 21 days on the market can negatively impact the sales price. Studies performed by companies like Miller Samuel have shown that for each 30 days a house is on the market, its sales price is reduced by around 2%.