Aren’t All Agents the Same?

Does it make a difference on who you hire to sell your home? Are all real estate agents the same? Are we just a commodity? And in a competitive seller’s market, do proper marketing and negotiations even make a difference? Lastly, does it pay off to hire a discount broker? Somebody who lowers their commission drastically to drum up business. Well, let’s review the data, the statistics, the numbers when analyzing and answering these questions.

I want to first start off by saying that we respect and appreciate our fellow agents, but some people may say that real estate agents are a commodity, and in a lot of cases, that is very true. And I can appreciate why some people would think that. In fact, it’s very easy to get your real estate license. Do you know that in Oregon, it takes 2,300 hours of pre-licensing to get your cosmetology license, and it takes 1,450 hours to get your hairstylist license, but only 150 hours of pre-licensing prior to taking the real estate exam? So yes, many agents lack experience, training, and education.

But what does the data say? Does it make a difference who you choose to sell your home? And when someone says that marketing doesn’t matter because homes are flying off the shelf, is that true? Is that right? Well, in answering these questions, let’s look at the data. We took this information straight from MLS, the Multiple Listing Service in January of 2022. We reviewed all single-family detached homes that sold in the Portland area in 2021. Homes sold for an average price of 623,808. At Eleete, our average sold price was 841,051. And my listing sold for an average price of 854,286. Over $850,000, which is nearly 37% higher than average, or over $230,000 more on average than other Portland area agents were able to obtain for their clients.

You’ve probably heard that people were selling their homes for more than asking. When we look at sales price to list price ratio in 2021, the average for all homes sold in our market was 1.84% over list price. My ratio was 3.16% over list price. So my strategic property marketing help my clients get almost double in that category.

Now, let’s look at market times. The average cumulative days on the market was 24 in the Portland area, but my clients enjoyed an average of just 11 days on the market. And my median was five days.

So far, it’s looking like the data definitely shows it does make a difference based upon the experience, market, knowledge, education, and marketing level of an agent, as far as what you’ll net on the sale of your home and how quickly it will sell.

Now, let’s answer the next question. Does it pay off to hire a discount broker? Will you really save money? Let’s compare two discount brokerages whose marketing proposition is that they will sell your home for 1%. First of all, you’ll need to read between the lines to find out if you qualify and what you’ll get for that amount. You may be required to purchase your next home through them as well.

It’s also important to understand that in Oregon, it’s customary for the seller to pay the buyer’s agent’s commission. So you need to pay the agent, bringing the buyer, which is on average 2.5%. So when a discount broker says they charge 1% to list your house, you need to remember that you still need to pay the buyer’s agent commission. So, in essence, you’ll be paying 3.5% commission, not 1%. That 1% offer seems enticing and it’s used to get their foot in the door. So is it worth saving 1.5%? Well, again, let’s refer to the data. The average sales price for discount broker number one was $570,060. And for broker number two, it was 583,194, which all combined, the averages more than 8.5% lower than the market and over 33% lower than my client’s average of 854,286. So, if you look at what you’re losing by hiring a discount broker, that could be tens or hundreds of thousands of dollars by potentially trying to save 1.5%.

This doesn’t even take into account the headaches of having representation that is anything less than full service. You need a responsive agent by your side to help you with strategy, negotiations for repairs, timing, possession, and problem-solving to advocate for you throughout the entire transaction.

And let’s look at one more set of numbers. The average star rating on Google for each of these brokers is 3.6 stars. Eek! If you want to go out to eat, do you look online and say, “Hey, here’s a restaurant that’s cheap and has 3.6 stars.” That sounds perfect. Well, of course not. Then why would you do that with what is likely your most valuable asset?

So, I want to let you know, I didn’t make this video to brag or to put anyone down, but I did make it to make you think because there are 15,193 member agents in our MLS who sold 28,506 single-family detached homes in 2021. So that average is less than two homes sold per agent last year. Not all agents are the same.

We take our education seriously and are on the cutting edge of innovation and technology to get you the highest return on your investment. So give me a call if you’re thinking about selling or just looking for some perspective or advice, I’m always here to help.