Can you put a price on experience? In real estate, you
can. It is about $25,000 for the average house.
Veteran agents sell homes for an average of 12% more
than their less experienced counterparts, says Bennie Waller, professor of
finance and real estate at Longwood University in Farmville, Va. Veteran agents
also tend to list more new properties, more townhouses and condominiums and
larger properties.
The more experience you have, the more likely you are to sell the properties that you list, the more likely you are to sell it at a higher price and the less time it stays on the market," Prof. Waller says.
Prof. Waller, along with Ali Jubran, a student at Longwood University at the time, examined 10,065 real-estate listings in a mid-Atlantic multiple-listing service from March 1999 to July 2009. They divided the listings into three groups—ones listed by agents who have been licensed for two years or less (called rookies), agents who have been licensed for two to 10 years and agents who have been licensed for 10 years or more (called veterans). They controlled for property characteristics such as size and location to isolate the "experience variable," and then compared the results for rookies and veterans. The study was published in the Journal of Housing Research in May 2012.
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