I want to take a quick second and give you a word of caution (I’m really talking to you newer agents) about the potential problems against take listings just so you can put something in MLS or have a yard sign out there. 

If you have an over priced, unsalable listing, or you have a seller that is unwilling to reduce the price to a competitive level, you need to consider all the time, money and effort that goes into marketing that listing - the same time money and effort you could invest somewhere else.

Not to mention, the emotional toll on you and the seller when it doesn’t sell. And if the listing expires, the seller could potentially tell their friends and family about your inability to sell your home, and fail to mention how you urged them to be competitive with pricing.

So bottom line: focus on saleable listings, not just taking listings.

Sales Rate

Sales Rate is simply the percentage of listings that you sell.

So, let’s say you listed 10 homes last year and sold 7. Your sales rate would be 70%.

A higher Sales Rate demonstrates your ability to effectively market and ultimately sell homes. On the other hand, a lower sales rate might indicate you’re wasting both your time and your sellers.

Here are my 3 steps to improving your Sales Rate and ultimately your business:

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Step 1: It Starts with Pricing

I’ve heard Loretta Maimone, in our Mount Dora office who sold 48 of her own listings last year tells her sellers that the best marketing tool the seller can leverage is a competitive price.  

So do your research before your listing presentation. Learn the neighborhood’s market conditions so that you can have a knowledgeable conversation with the seller.

So when a seller brings up a neighbor across the street and says their house is on the market for x amount of dollars, you can be ready to explain that the home has been on the market for x amount of days - probably because it’s priced too high.

Keep in mind, that this is why they are hiring you - to sell their home, not simply put it on the market.  

I suggest using our pricing analysis grid when discussing pricing strategy.  It visually demonstrates:

• What has recently sold in green

• What has expired/not sold in Red

• Similar homes currently on the market in yellow (I like to say “your competition”)

Then sit back and actually ask the seller based on this information, "where do YOU think the home should be priced?"

Step 2: Set the expectation with the seller

Explain how the first 45 days of the listing is the most critical time period.

If the home is not priced correctly, it will sit on the market for an extended period of time and runs the risk of not selling for as much as it could have originally,   

If a seller wants to try a slightly higher price at first, I would insist on writing into the actual listing agreement a predetermined price reduction based on the lack of showings or offers.  

Keep in mind that we are in a low inventory market. If a home sits on the market more than 90 days without any offers, it usually is a pricing issue.

If a seller is still unwilling to reduce the asking price to a competitive level, we can set what I call a repositioning appointment. This is where we sit down face to face with the seller and discuss the lack of showings and offers.

I can usually get seller’s attention after I ask this one simple question: "Wouldn’t you prefer to reject offers than not get any offers at all?"

The answer is usually, "yes." So we recommend lowering the price and sticking to it.

Step 3: Take a look at your marketing

What are you doing to increase your exposure online?

Make a commitment to take professional photography and write compelling listing descriptions - for ALL of your listings.

Remember, each listing you take is an audition for your next. Part of your brand should be how well you market each one of your listings.

Share them on social and get creative! Write a blog post, film a video, think outside of the box to provide additional exposure.

If you focus on these 3 tips, your sales rate will improve and more importantly, your business will grow.  

For more tips for agents and industry pros, be sure to subscribe to our blog - AgentTalk, and stay tuned for my next Broker Tip. 

Check out these other great tips: 

• Create a print newsletter in under 30 minutes
• [Video] Gus Grizzard shares his 5 "musts" for a listing presentation 
• How to create a Facebook Page for lead capture 
• 5 Steps to Creating a Dynamite Real Estate Marketing Plan
• Direct Mail Remix: Leveraging online marketing in traditional farming

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Have you taken a look at your own Sales Rate recently? Do you currently use any of these tips or have any others to share? Let us know in the comments below.