I recently came across an article in The Wall Street Journal from a couple years ago that I wanted to address today called “The Price of Real Estate Experience: $25,000.”
A professor of finance was intrigued by this topic, so he took a 10,000-home sampling over a 10-year span and researched real estate sales. He broke the sale into three categories; homes sold by rookie agents with two years of experience or less, homes sold by agents with two to 10 years of experience, and homes sold by real estate veterans with more than 10 years of experience.
He found that the veterans sold homes for an average of 12% more money than rookie agents. In our market with an average sale price of $175,000, that equates to about $20,000 more in your pocket by hiring a veteran agent.
The more experience you have, the more insight you have. You also will have the finances and the skills to market better, because you’ve seen it all. Having seen almost every possible version of a real estate transaction is invaluable experience that means more money for a seller. The funds to market properties appropriately comes with a breadth of knowledge and experience to allow an agent to do it over and over and turn their skills into mastery.