Why the Odds of Selling Your Client's Home Matter More Than Price

By Dave Zajdzinski

A 20-year real estate veteran married for 20 years with 5 kids. He has sold over 1,500 homes for $500 million in volume.

When selling a property, understanding the odds of a successful sale can significantly influence the outcome. As a real estate agent, it’s crucial not only to provide sellers with a price estimate but also to evaluate the likelihood of their home selling. The real estate market functions similarly to ticket scalping: when there are more buyers than available homes, prices remain high. However, when the market is flooded with similar properties, the chances of a successful sale decrease. Understanding these dynamics helps sellers set realistic expectations and adjust their pricing strategy accordingly.

This is where having the right tool can have a profound impact. Using software like Focus 1st, which calculates the absorption rate, can provide a competitive advantage. Let’s explore how mastering the odds of selling with the right tools can transform your sales approach.

Why you should calculate the odds of selling. The real estate market can be unpredictable, and this is where Focus 1st can prove invaluable. Whether you’re flipping homes for a company or working directly with sellers, this tool helps assess whether pursuing a specific property is worthwhile. It allows agents to evaluate critical factors, such as absorption rates, providing the confidence to make well-informed, data-backed decisions.

The importance of absorption rates. Absorption rates are essential in determining how long a property is likely to remain on the market. For example, if a property has a 52% chance of selling, there is significant competition, and pricing decisions must be carefully considered. If competition drives prices down, the home could become the highest-priced property, increasing the risk of it sitting unsold. Focus 1st enables real-time analysis, giving agents a clear edge over competitors.

Real data, real decisions. When meeting with sellers, simply discussing their home’s potential selling price isn’t enough. It’s more valuable to focus on the odds of a successful sale. Tools like Focus 1st empower agents to present data-driven insights, making discussions about competition and market trends far more meaningful. For instance, if the historical average of homes selling in an area is 67%, and a particular house has a 71% chance, agents can use this data to set realistic expectations. By sharing these odds, agents demonstrate that they have solid data guiding the sale, not just conjecture.

Knowing when to hold off. Sometimes, the odds may not be in a seller’s favor. In such cases, it’s important to offer honest advice. I’ve even advised sellers to hold off on selling if market conditions are unfavorable. Using Focus 1st to assess the market enables sellers to make more informed decisions about whether to list their home now or wait for better conditions.

In an ever-evolving real estate market, understanding the odds of a property selling is crucial. By utilizing tools like Focus 1st and relying on data such as absorption rates, real estate professionals can provide more accurate guidance to both sellers and buyers. If you have questions or need assistance, contact me at (480) 332-6468 or email me at dave@zteamaz.com. Let’s start mastering the odds of selling!