"Do I list for volume or list for results"?

I recently had a visit from one of the newer agent's in my office, he had a question. "What is a good business model as a listing agent?"

"What do you mean?" I asked.

"Well," he said,"should I list anything at any price to get yard signs out or focus on taking listings on my terms, terms that will get the property sold?"

Ah, that business model! Well this agent had touched on the dilemma and options that all Realtors have when deciding in which direction they take their business. If you are to become a successful Realtor and service sellers you will be listing properties with the intent to get them sold of course, but are there business models that say "list anything at any price and get yard signs in as many yards as possible." Well, yes there is this philosophy, but it is a business model that favors the Realtor more then the client. And, by the way, it has been extremely successful at building some fine careers!

Basically the idea is to take any listing regardless of price, terms, showing availability or any other parameter that might prevent the property from getting sold right away so that an individual agent can saturate a market area. Often times this will lead to listings that don't sell, but if you are this type of agent and you have 20+ properties on the market at any one time, so what if half don't successfully sell! You still have a lot of deals. Well, the agent is happy, but what about the sellers that didn't get the results they expected? Those are known as price reductions or expired or cancelled listings!

Now, I am not saying that all high volume listing agents do this, as a matter of fact the majority don't. They just work hard! But every market area has this type of agent and frankly most the other agents in a given market know who they are. They are the agent's whose properties are chronically overpriced or properties that sit for ever on the market.

The other business model of course is to focus on the seller's needs and less on building the agents reputation. Successfully sold listings will take care of an agents reputation! Usually the two main goals are getting the most amount of money for the home in the fastest time possible. Now this can be accomplished by successful agents whether they are listing 20 active properties or one at a time. A good agent, one who is focused on the seller's goals, will have a firm feel for the correct market price, the correct marketing techniques and will develop a cooperative strategy and partnership with the seller. And if the seller insists on price or terms that will leave the seller at a disadvantage, a good agent will tell them of the problems and use the agent's knowledge and experience to inform the seller. If a seller still insists on using a negative strategy, well a good agent will often make the decision to not take the listing and move on.

A seller who is considering an agent should focus more on how many unsold listings an agent has had in the past. How many expired without selling? How many of this agents old listings ended up listing with another agent and then sold? How many price reductions did the agent have to make before the property sold? How many days on market before a property sold?

Now, individual market areas and downturns in the general market can cause some of these problems, but if an agent has these issues consistently it tells you something about their business model.

I have worked with great agents that may only have one listing at a time or they may have 20-30 or more at any given time. The common profile of these great agents is that they are working for their client one deal at a time. After all, that is the only transaction the client cares about!