A New Real Estate Industry Standard

A New Real Estate Industry Standard

It sure seems like The National Association of Realtors should consider implementing an agent ranking system in the spirit of better informing the public and providing sellers with a credible yardstick to evaluate the track record of agents.

Most markets around the country are littered with expired listings and price reductions. Without clear performance metrics, business is won by telling the customer what they want to hear rather than the truth.  Ultimately the seller pays the price in the form of unnecessary days on market or poor sale price because their property is perceived to be stale merchandise.

Here are the metrics the National Association of Realtors should consider in implementing a ranking system:

  1. % Of listings sold during their original listing period
  2. % Of final sales price to original list price
  3. % Of contract signed that ultimately close

In order to receive a batting average agents must close six transactions a year.

With a new national standard in place it will be easier for home sellers to make informed decisions.  Some may choose to select a rookie with lots of talent and new ideas for a reduced fee and others will select an experienced veteran for top dollar because they need predictable results.  Regardless, the batting average concept will raise the bar and improve the public’s perception of real estate agents.