ARVADA, COLO./ MAY 11, 2019 (STL.News)
When choosing the right agent, experience counts. When it comes to a high-producing real estate agent, they typically have encountered more obstacles in their career and will likely have more solutions for buyers and sellers.
“In a normal market 10% of all the homes that are under contract fail after the initial offer is written. In a shortage market, where there is not a balanced market, supply and demand will push prices and the fail rate is around 28%,” said Maxon, RE/MAX Alliance’s Top Producing Agent for 2018. “Experienced agents will have much better numbers than average, because they have more experience with the obstacles.”
For example, if a seller loses his or her job, what are the alternate ways of financing when 90% of the lenders will turn down that client? Most often a seasoned agent will have private funding sources, hard money lenders or other options (asset-based loan) that many times will save a transaction.
Another example could be the multiple domino effects and how to get clients’ offers accepted and compete without having to make a double move. Most experienced agents will have multiple options for this scenario, which is very common in the higher price range and the networking of agents become a huge advantage to experienced agents.
“However, newer agents may not have this in their arsenal — a guaranteed buyout and a strong and reliable reputation with other agents so that your case can be compelling to the ‘upstream agents,’” noted Maxon.
Furthermore, longtime agents usually have “shadow” inventory, i.e. knowledge of homes that are not yet on the market but are coming on the market soon. This allows for an extra boost in inventory. They also have a better knowledge of price points, regardless of the posted statistics.
“The bottom line is that the net to sellers on average if dealing with an agent that has substantial numbers (both in production and transactions) is estimated to be 5-8% more than with a novice,” concluded Maxon. “Similarly with buyers, an experienced agent in a competitive market will have much higher success rates than a less experienced agent.”
About Marlene Maxon, RE/MAX Alliance
Marlene Maxon, the “Marketing Expert,” has over 25 years of solid and specialized marketing expertise. She is a member of the prestigious RE/MAX Chairman’s Club and has been featured eight years in a row in 5280 Magazine as a Five Star Realtor, and mentioned in the prestigious New York Times as a Colorado Real Estate Expert. For more information, please call 303-549-8787, or visit http://www.homesincolorado.com.