PDA

View Full Version : Home sellers



johnlock
02-17-2005, 01:50 PM
The following was posted on an Internet real estate discussion site.

"Of the two leading real estate firms in our town—Adams Realty and Fitch Realty—Adams is clearly superior. Adams has 40 real estate agents. In contrast, Fitch has 25, many of whom work only part-time. Moreover, Adams' revenue last year was twice as high as that of Fitch, and included home sales that averaged $168,000, compared to Fitch's $144,000. Homes listed with Adams sell faster as well: ten years ago, I listed my home with Fitch and it took more than four months to sell; last year, when I sold another home, I listed it with Adams, and it took only one month. Thus, if you want to sell your home quickly and at a good price, you should use Adams."

This argument proposes that among the two real estate firms in town Adams Realty is the better choice over Fitch Realty for selling homes quickly and at good prices. For support the author mentions that Adams has more agents and its revenue reported twice that of Fitch last year. Furthermore, home prices of Adams average higher and homes listed with it sell faster, which is projected in the author’s experience that last year he sold a home listed with Adams within a month while ten years ago it took him over four months to do so with another home listed with Fitch. This argument is reasoned with serious flaws.

Above all, the author’s experience lends no strong support that homes listed with Adams sell faster. The comparison is inapplicable because his experience with Fitch ten years ago is asynchronous with his with Adams last year. It is quite possible that Fitch betters Adams in performance through its strenuous efforts to streamline its business procedures in the past years. Besides, the author fails to provide adequate individual cases to substantiate the claim that Fitch did sell more slowly than Adams ten years ago.

Secondly, the argument is ungrounded in asserting that homes listed with Adams necessarily receive a higher bid. That the average price for homes listed with it is higher than that listed with Fitch does not ensure that anyone who chooses Adams will get a better price. Perhaps Adams arrives at a higher average by selling a few homes at very high prices and many at lower prices than would be possible with Fitch for which the reverse is true. If so, the chance for a better price is greater when one chooses Fitch.

What’s more, the author fails to convince us that Adams excels over Fitch in performance. Since Adams has 60 percents more agents than Fitch many of whose agents work only part-time, it follows that revenue of Adams is at most commensurate with its size. Besides, many other factors have to be considered in choosing between the two firms, such as post-sale service, customer satisfaction, business orientation on which the argument does not provide any information.

All in all, the conclusion of the argument needs more evidence for support, especially evidence concerning efficiency of transaction of both the firms at present and sales data about price levels of homes listed with each.