First of all I would like to qualify myself and a statistic addict. My success is based on knowing as much as possible in my marketplace. It is marketing 101. There are a lot of things in the world that can tell you where your business and sales are going and they are free. Sometimes, agents and even brokers ask me where do I get my information from? First of all it is all free, and usually right in front of your nose. Knowledge makes the difference in whether I want to list a home, pricing it correctly, advising a buyer or a seller. To me it makes the difference between success and failure. Why guess about the market if your can just as easily pull up the numbers? Can you answer the following questions? Does it matter?
- The number of agents in your board?
- The number of sold homes last month?
- What is the absorption rate?
- How many homes expired?
- What is selling? Condos, town homes, lofts, or single family homes?
- How many are withdrawn from the market?
- What did they list for?
- What did they sell for?
- How long did it take to sell?
- How does that compare to last year?
- What is the trend?
- What percentage of concessions did the seller make?
- What price ranges are moving?
- What prices ranges are sitting?
- What are people looking for?
- Are 3 bed room homes more desirable than 4+?
- Are new homes selling more than re-sales?
- Homes that are under contract what do they have in common?
- How many foreclosures in your market place?
RE/MAX Paramount Properties 678-595-5286 Direct
Or 888-940-0074 Toll Free Office
Atlanta Real Estate & Atlanta Homes for Sale 
It's nice to run across another professional in the business that understands that we are dealing with a financial market here and not just Mr. and Mrs. Jones and the color of the kitchen cabinets! I am a bit of a statistcs nut myself and like to use charts and graphs in excel to illustrate price trends, sales trends and past/present sales prices. I also like to apply moving averages to the trendlines to to try and get a better understanding of short term movement (Thanks Dennis Black!) This has been very helpful in my business as a deal mostly in gulf-front property in Panama City Beach. When you can truly show someone that something is priced 60-70 cents on the dollar, it is an easier sell for sure.
Absolutely!!! Clients expect and deserve who they are hiring, knows the market, and is a professional. Winging it, only gets you so far.
I am a believer in the use of Statistics. I have been using stats in my listing presetations with great success. Giving the homeowner this data helps them to make a more informed decision and usually prevents the client from insisting on overpricing their homes.
Craig Duran (Pelican Real Estate and Development Co., Inc.) I love your idea of moving avreges! If you can display the trends to a willing seller or buyer you could own the world.
Kim Kelley (Coldwell Banker Sky Ridge Realty) I fully agree. This is also a market where you have to really know your business and the marketplace. Those that don't are setting themselves up for extinction.
Gene Hicks (Keystone Real Estate on Main) I agree. You are so right "data helps them to make a more informed decision and usually prevents the client from insisting on overpricing their homes."
Statistics and market data are the quickest and easiest way for a client to understand the current market. People make their decisions emotionally and justify their decision with logic and facts.
Sam Miller (RE/MAX Stars Realty) Sam I love your comment..."People make their decisions emotionally and justify their decision with logic and facts." We are the professionals that need to provide them with the correct data.
You're talking to a stats junkie here.
Are 3 bed room homes more desirable than 4+? Sure, in Texas where they build Ramblers. In my market, 3 bedroom home is considered a bad investment.
Seller concessions are an interesting subject too because they don't always show in CMAs. It's all part of the industry drive to keep prices up.
Lenn Harley, Homefinders.com, MD & VA Real Estate Lenn you a stats junkie? LOL! Atlanta is the same way. Most agents in my market do not even know that a 4 bed home is more desireable than a 3 bedroom. I also deduct the seller contribution to buyer from the net price in my CMA's. The seller needs to look at a realistic number of what they will walk away with. Most homes in Atlanta today will sell with a seller contribution.
Great post with enough questions to get the ball rolling. I get answers every morning to a set of questions I keep by my computer every day. If something changes. I need to be able to speak to that chnge positively.
L. Wayne Denton I HAVE A HANDLE ON YOUR MARKET! ! ! ( Magnolia Signature Homes) That is what the numbers do...they cover you and back up your real estate knowledge with facts.
Jim, excellent summary of the items that we, as professionals, should have at our fingertips and ready to disseminate to our clients. As you mentioned, these statistics are what makes the difference between pricing a home so it will sell, and being just another turkey sitting on the market, but not IN it. Thanks for the Marketing 101 lesson!
Statistics Rule! It seems like it helps me seal the deal. Clients expect more and are informed better on what to expect from a professional real estate sales person. Hopefully all others won't catch on and will continue to "wing it", making all of us that do look a whole lot better!!
Thanks and good luck
Mike Warren
Prudential Missoula Properties
406.531.0438
Especially in today's market (or any market for that matter) you MUST know statistics. Just look at what the media is trying to tell us, they use only the most depressing stats, to flare up the public. If you aren't using sales and trends data to your advantage- you are going to be left behind.
Interestingly enough, those who are using stats and data about their market, are changing with the fluctuating market and WILL flourish while the whiners are left behind and clueless.
Jim, I am like you. I love numbers and statistics but despite being trained by a handful that know the MLS, I have found it difficult to extract the statistics. The title companies and the newspapers have more information to give out than I have been able to find for myself. I'm going to dig deeper. You've listed the questions, I just need to know how to get the answers.
Jim,
Good info for real estate professionals to have at their disposal...! Thanks, Fran
Michael Mackey (R) ABR, CRS, GRI (CENTURY 21 All Islands) Thanks Michael! We need to raise the bar. Someone recently asked me a question about the market and I shared some statistics...the comment I received was that I was negative. My answer, I may be negative, but my insights are data driven. Some agents complain of no sales and we are doing pretty good. 3 homes under contract this week.
Mike Warren (Prudential Missoula Properties) You are so right! Statistics really do seal the deal.
Long & Foster Realtors You're right! Statistics make the difference of a winner and a whiner!
Fran 'The Title Man' Gaspari Title Insurance-PA & NJ (Patriot Land Transfer, Inc.) Thanks Fran!
I love stats! Using the appropriate statistics helps both buyers and sellers get a better picture of the market place. Thanks for the reminder.
Kendra Adams (RE/MAX Alliance) Thanks so much Kendra, I totally agree.
Another statistics junky here in NY. Buyers and sellers both seem amazed when you can qoute them the facts. It also covers a lot of disclosure issues that seem to be cropping up.
Diana Corcoran - Rhinebeck Real Estate (Paul Hallenbeck Real Estate) I think sellers really need a lot of facts before they receive promises. IN my marekt I may not be able to promise a sale. Sellers are impressed witht he facts that are delivered and work very hard with us to get the home sold.
Jim~ I agree with you, numbers do speak louder than anything we can say or do. Unfortunately, some sellers just don't want to know the truth. Where else do you find the answers to these questions besides our MLS?
Jim, After reading your list, I need to study my market further it seems. I am the absorption rate queen here, but never thought to check some of the other statistics. Our MLS does show seller concessions and that is a huge help when presenting a CMA.....thanks for the great post. Time to brush up on my homework!
Owensboro,Kentucky- Real Estate-Vickie McCartney,Broker,ASP,ABR,E-Pro (Home Realty GMAC RealEstate,Owensboro,KY) I also search news stories in Google News and type in topics like:
Huntsville, Alabama Real Estate Agent Elizabeth Ramsey Cooper (Remax Huntsville/Madison) There is always something new to use.