Home > Blogs > Illinois > Cook County > Chicago > Lost Real Estate Commisions, 01/01/11 -12/31/11
39,747 views

Jack Schlenk's Blog

By Jack Schlenk | Appraiser in Chicago, IL

Lost Real Estate Commisions, 01/01/11 -12/31/11


Lost Real Estate Commisions

MLS 8001
Single Family, 34% sold, unsold 66%, avg. sale $270,169, @5% $13,408
Attached,     20% sold, unsold 80%, avg. sale $  89,689, @5% $ 4,484 
2-4 units, 21% sold, unsold 79%, avg.sale $296,936. @5% $14,847
Total $32,739 Simple math 300 listings = 75 sales, 225 not sold

MLS 8002
Single Family, 30% sold, unsold 70%, avg. sale $284,121, @5% $14,206
Attached,     23% sold, unsold 77%, avg. sale $284,121, @5% $  3,290
 2-4 units,    19% sold, unsold 81%, avg. sale $300,476, @5% $15,024
Total $32,520    Simple math 300 listings = 72 sales, 228 not sold

MLS 8003
Single Family, 34% sold, unsold 66%, avg. sale $761,219, @5% $38,061
Attached,     23% sold, unsold 77%, avg. sale $183,145, @5% $  9,147
2-4 units, 19% sold, unsold 81%, avg. sale $396.334, @5% $19,817
Total $67,035 Simple math 300 listings = 76 sales, 224 not sold

MLS 8004
Single Family, 32% sold, unsold 68%, avg. sale $545,403, @5% $27,270
Attached 31% sold, unsold 69%, avg. sale $193,825, @5% $ 9.691
2-4 units 23% sold, unsold 77%, avg. sale $384,182. @5% $19,259
Total $64,166   Simple math 300 listing = 86 sales, 214 not sold

MLS 8005
Single Family, 43% sold, unsold 57%, avg. sale $818,046, @5% $40,902
Attached 40% sold, unsold 60%, avg. sale $352,740, @5% $17,637
2-4 units 25% sold, unsold 75%, avg. sale $442,268, @5% $22,113
Total $80,642    Simple math 300 listings = 108 sales, 192 not sold

MLS 8006
Single Family, 33% sold, unsold 67%, avg. sale $1,121,125, @5% $56,056
Attached 36% sold, unsold 64%, avg. sale $   337,849, @5% $16,892
2-4 units 27% sold, unsold 73%, avg. sale $   579,040, @5% $28,952
Total $101,900    Simple math 300 listings = 96 sales, 204 not sold

MLS 8007    
Single Family, 35% sold, unsold 65%, avg. sale $1,980,037, @5% $99,002
Attached 37% sold, unsold 63%, avg. sale $   413,428, @5% $20,671
2-4 units 21% sold, unsold 79%, avg. sale $   656,885, @5% $32,844
Total $152,517 Simple math 300 listing = 93 sales, 207 not sold

Based on a 5% commission, if a Real Estate office sold one sale in each catgegory. (21 sales)
the revenue would be: $498,790. Assume a 50-50 split, the listing and sales offices, $249,395
each, 2 agents $124,698 each.

Based on the simple math data there were 2,100 listing units, of these listings 606 units sold 
and 1,494 units not sold.(28.86% of the listing sold, and 71.14% did not sell.)

If the listing agents were playing baseball, they had 2100 appearances at home plate and struck out 1,494 times. Contact me if you want to improve your batting average.

The number one reason why a listing unit is not a sale is the "PRICE".

There is not a 100% formula to price a property. The best way to price a property is to use the Appraisal Principle of Substitution; The value of an article does not exceed the value of an acceptable substitute.

I recently did an purchase appraisal for a property. The appraisal value was 9,5% less than the contract price. The main reason the appraisal value was less than the contract price was the
Principle of Substitution.

The comparable sales were within .5 mile of the subject property. The said properties had similar amenties, room and bath count. The comparable properties were give minus adjustments for dollar concessions to the buyer, superior parking and a time adjustment.

Also consideration was the market data 5% difference between the final list price and the the sale price.

Please review my articles on Jack Schlenk blog and web site WcuAppraisals.com

Jack Schlenk, Consultant 
Illinois's licenses, Certified RE Appraisal & RE Managing Broker
773 685 8300 

 

Comments

By Shivers,  Tue Feb 28 2012, 11:43
your facts are right on. Now if the others would listen!!!

POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer