So if you're going to compete with top agents in your market, may be the most experienced agents in your market, there's really three things that you need to do. And these are the things that really I spent a lot of my time talking to the agents that are in our coaching program because I get questions from people like you here on YouTube or messages on Instagram all the time with, "Brandon, I'm a new agent and how is it that I can compete with these top listing agents or agents that have been in the marketplace for a while?" So there's three things that I want you to really focus on in this video, take notes, pay close, close attention on. And if you have any questions about anything we covered in this video, just put them in the comments and I will absolutely get back to you. So number one is knowing the market. Okay? So here's what that means. There are five, really five statistics that you need to know inside and out. Matter of fact, on your schedule on your calendar every month you need to spend time understanding and documenting these five stats in your market.
Number one I wrote, how many homes are currently for sale in your marketplace? This is the market. You need to know how many houses right this second, how many properties are for sale? This serves as our inventory. Okay? So when you look at a competition standpoint, if you're going to potentially interview to take a listing, this serves as the competition. Number two, how many new listings, new listings hit the market this month? Okay? This will kind of tell you, "Okay, what is the activity levels like specifically in this neighborhood or in this marketplace?" How many homes are coming into the marketplace adding to that inventory? Number three, how many homes on average are selling. Regardless of where you're at in the country, you're probably in a very tight, low inventory market. Matter of fact, it's the lowest inventory maybe in the history of real estate right now. Most of us have about a month and a half worth of inventory. And so what we need to look at and what you need to be able to communicate and articulate to a perspective seller is how many properties are selling every single month in relation to how many homes are hitting the market? What you're going to find and if you can articulate this to a seller, you're going to find that almost all of the inventory's selling out every single month driving this seller's market forward. Number four, the list price-to-sold price ratio. So if you listed a house at $100,000 and it sells for $100,000, you have 100 list price-to-sold price ratio. Now you need to understand what is the market average? Because the seller will ask you oftentimes, "What do you think I can get for this property? What do you think I can net? What are the chances of me getting what I'm asking for, Brandon? Can we list way up here and then lower it over time?" You can show them the stats and say, "Listen, it's not like it used to be when it was a buyer's market where you would list way up here and then have to lower the price over time." Matter of fact, most of your markets if you look in your MLS, you're probably hovering around a 95, 96, 97% list price-to-sold price ratio. In addition to that, you need to understand what is your list price-to-sold price ratio? And if you're a brand new agent, what is your company, what is your team, what is your brokerage's list price-to-sold price ratio? You're going to use this ratio to your advantage when you're going to interview to get listings. I talk about this ratio all the time when I'm going after for sale by owners, for an example, and they're saying, "You know what, Brandon? I'm looking at listing the property with a flat fee MLS only company or brokerage." And I say, "Okay, cool, no worries. I get it." And then I show that company's list price-to-sold price ratio in comparison to mine. Now you might be watching this and say, "Well, I don't get it. Why would that matter?" Well, let me explain. The reason why you need to know this ratio is for this reason. What does a seller, not one seller, every single seller care about the most? The money they're going to net. The money they're going to net from the sale of the property. Now they bring up all kinds of objections around commissions and this, that, or the other thing. What they're really communicating is they're trying to protect their net bottom line dollar that they're going to get from the sale of the home. Right? Well, wouldn't you agree that nothing more drives that bottom line than this specific ratio? So imagine a world and this is what you're going to find if you do the research and you become a market expert, what you're going to find is that these flat fee MLS only entry listings that a lot of for sale by owners think they want to use. They have like a 60, 70% list to sold price ratio. Why? Well, because the sellers driving that process more times than not. And if you look at what an average agent or what your company is doing, and let's just for example say it's 98%. You can now clearly articulate to the for sale by owner or to any seller that, "Look, here's what the numbers look like." Now you can make a decision based off that information, but if we're talking about you potentially putting your house on an MLS only entry listing because you don't want to pay a commission is that really the best thing for you? Well, you could show them the numbers and you can articulate the facts. And then number five is the average days on market. To me this is everything. This is the ratio that you have to know at all times in your marketplace. Time is the one thing that drives the entire real estate process. House sits on the market for a long time, lots of negotiation, lots of low ball offers. House sits on the market for hours with multiple offers. Well, now the seller's going to drive that process. Everything in the real estate transaction comes down to time and how long it takes to sell that property. You need to know on average in your marketplace how long homes are taking to sell. Now when you know those five facts, the other thing I recommend is you create what I call a market snapshot for a specific neighborhood for when you're going to interview to take a listing. So an example, you call an expired listing of for sale by owner, past clients, center of influence, absentee owner, it doesn't matter about the lead source. You set a listing appointment. When you're doing your CMA, you want to create a market snapshot with these five ratios, these five stats that I just walked you through for that specific neighborhood. So now when you are potentially competing with an experienced agent and you have all the nitty-gritty facts around their specific neighborhood, you now become the obvious choice, right?
Number two, the second thing you need to do in order to compete with top agents in your marketplace is preview homes like crazy. And I'm not just talking about previewing for sale by owners. If you've been following me for a while you know I'm a huge believer in that strategy. I'm not talking about just for sale by owners. I'm talking about anytime a new house or a new property hits the market in your marketplace you need to go into your MLS and simply schedule an agent preview. If you make a habit of previewing all of the new properties that hit the marketplace you will know the inventory better than any agent. I don't care about their experience. It doesn't matter about how long they've been doing business. If you physically walk through the properties and you're physically previewing properties, every time a new property hit's the market nobody, nobody will know the inventory or better than you can. Now imagine a world for a second that you actually do what I'm suggesting and you go and preview all the new properties that hit the market. And you schedule a listing appointment. Imagine the power being able to communicate to a perspective seller when you're doing the CMA presentation at your listing appointment. And you can say, "Mr and Mrs. Seller, I have physically walked through both of those properties. I looked at the basement. I looked at the craftsmanship. I looked at the condition" and you're able to articulate how that impacts this potential property. I don't care about the experienced agents because they are not... Your competition, believe me what I tell you is not taking time to preview properties. So if you do, this is just another way on how you can not only compete, not only compete with top agents, but you can dominate the actual competition.
Number three, master, listen closely, master your listing presentation. When you get the opportunity to interview, to take a listing, your job is to communicate in such a way that the sellers are blown away. You know the market inside and out, you know the competition inside and out. You can communicate your value proposition in a way that lowers the anxiety of the seller and makes you the obvious choice. Sellers are not even going to ask about your experience. They're not even going to want to interview other agents. And so I put my script up, there's a link to my actual 2021 script book beneath this video. You can download it for free. You can master the listing presentation script. Those would be the three things if I'm in your shoes and I'm a brand new agent or I moved from my market to a brand new market, those would be the three things that I would absolutely be a fanatical freak about mastering. Mastering the market, knowing the stats better than anybody else, preview properties like an absolute crazy person, and then mastering your listing presentation. If you could do all three of those, you can crush your competition and your experience won't matter. Hopefully that makes sense.
If you have questions, I'm going to hang out in the comment section for a minute. Make sure if you do have questions, let me know. And if I don't get back to you right away, give me a day or so and I will respond. Hopefully this video provided you value. If it did, subscribe to the channel, help to support this channel so that other agents can also watch the video. We'll talk to you guys really soon. Thanks for watching.