So what about measuring the difference between the results of different Sales agency firms? If there is a difference between sale price and time on the market, and if there is truth to our statement that quality and type of marketing is important in determining sale price of a property. Then we should be able to clearly see a difference in sale prices achieved for similar homes between competing Real Estate firms in Timaru. After all there does appear to be differences in the way each firm sells homes and markets them.
Question 2: Is there a difference between Real Estate firms in Timaru regarding the final price they achieve for their Clients (the home seller).
By taking a sample of 300 ‘typical’ homes sold in the past 12 months we found a statistically significant difference between the sale prices of different Real Estate firms. We categorised a ‘typical’ home as 3 bedrooms with similar rateable values. Each of these homes sold above there rateable values meaning we can assume a reasonable standard of maintenance has been given to these properties. The difference between the top performing and bottom performing agencies is the equivalent of a cheque for $30,000.
As alway’s there is variability in the data that make up the averages of each sales firm. For instance the top performers still have a few lower results, just as the lower performers also have some good results. However even when we apply a repeated analysis of different ‘cuts’ of the data, as well as applying statistical models which account for these variances we continue to find that there is a clear measurable and consistent difference between Real Estate sales firms.
An interesting note was that there was not a significant correlation between market share of listings and the ability of the agency to deliver high sales values to homeowners. Instead we stand by our notion that it is the sales process, the marketing and the motivation that will come into play when delivering great results and satisfaction on Value.
New and readily available data is playing an ever-increasing role in people’s ability to make decisions. If we are serious about giving clients great results, then we must utilise the power of this information. It’s quite clear some homeowners could have had significantly better results through applying a refined sales process. As we grow and develop our capability, we will continute to see growing benefits to the home owner.