The National Association of REALTORS® (NAR) recently released the D.A.N.G.E.R. Report which stands for Definitive Analysis of Negative Game Changers in Real Estate. NAR commissioned Swanepoel T3 Group, an outside management consulting firm, to conduct an analysis of the threats, opportunities and trends in the real estate industry. According to the DANGER Report, the #1 threat to real estate professionals and the industry as a whole are other agents who are unqualified and/or incompetent. The Report says, “The real estate industry is saddled with a large number of part-time, untrained, unethical, and/or incompetent agents. This knowledge gap threatens the credibility of the industry.”
In an article published by the Wall Street Journal on September 12, 2013, the Journal of Housing Research studied 10,065 real estate listings over a ten year period from 1999—2009 using a control for property characteristics such as size and location to isolate the “experience variable,” and then compared the results for rookie and veteran Realtors. The study was released by the Journal of Housing Research in May 2012. They divided the listings into three groups; ones listed by agents who have been licensed for two years or less (called rookies), agents who have been licensed for two to ten years, and agents who have been licensed for ten years or more (called veterans). The professor who developed the study became interested in quantifying experience when he noticed an increasing number of agents who chose not to renew their licenses after two years. Real estate agency has “very, very, very low barriers to entry,” he says, “but brokers face a steep learning curve and many struggle to reach a level of expertise that is profitable.”
Results of the 10 year Journal of Housing Research study show:
• Veteran agents sell homes for 12.4% more than those with less than two years of experience.
• Veteran agents are 1.6 times more likely to successfully sell a listed property.
• Veteran agents sell homes 32% more quickly than those with less than two years of experience.
According to Multiple Listing Service records for South Boulder, the value of my SOBO real estate experience is worth $16,058 to SOBO homeowners!
Of the 2,826 real estate listings of single family homes sold in South Boulder over the ten year period from July 1, 2005, to June 30, 2015, and comparing my results to the results for Realtors that have sold an average of at least one home per year for the last ten years, and to results for Realtors that have sold less than ten properties in the last ten years.
Results of the MLS records for 10 years of SOBO listings sold show:
• My listings sell for $14,153 more than Realtors with ten or more listings sold in SOBO over the last ten years, and for $16,058 more than less experienced agents, based upon the 2015 average SOBO sale price.
• My listings sell 15% more quickly than Realtors with ten or more listings sold in SOBO, and for 22% more quickly than less experienced agents.