Conversion Ratios are Critical
November 15th, 2012 by Geoff Baldwin
Often sellers will choose their agent based on that agent’s activity and amount of signs in their area however volume of signs is not always the best indication of success according to RE/MAX WA Managing Director, Geoff Baldwin.
“What’s more important than having a lot of signs up is how many of those properties actually sell and settle and this is referred to as an agent’s conversion ratio, Mr Baldwin said.
“Analysis of results in Western Australia disclose that, although some agents do not focus on holding large volumes of listings, some of them have exceptional conversion ratios whereby they are selling almost every property they list.
“On the other hand some agents with large numbers of listings and signs are only achieving list to sell rations of as low as 50 percent.
“Obviously it is important to sellers that they have the highest possible chance to achieve a sale so we encourage people to ask the agent they are considering to demonstrate to them what their conversion ratios are and also their average time on market per listing”, Mr Baldwin said.