Our Real Estate Blog

The Top Percentage Principle of Real Estate Sales

August 1st, 2008 9:28 AM by Lehel Szucs

It is the top percentage principle of real estate sales, and it's a theory I have embraced for several years to good effect. But in order for the theory to have a positive effect on sales, clients must understand it as well as I do. In other words, I can help my clients succeed by coaching them on the top percentage principle of real estate sales.

The Top Percentage Principle of Real Estate Sales

This principle states that only a certain number or percentage of homes will sell each month within a specific neighborhood, and a house will not sell until it enters into that top percentage of real or perceived "deals." For example, lets say the top percentage in a certain neighborhood is 10%. This means that if a home owner in the area wants to sell their home, they will need to be in the top 10% of real or perceived "deals" within that area. If they are not, they will need to break into the top 10% of deals for next month or the home will still not sell. The actual percentage number will fluctuate with area and time, but the concept itself will hold steady.

What This Means to Sellers

For sellers, the most important thing they can do is get into that top percentage of homes that are selling and get there quickly! This can be done a few ways, but remember first that perceived value is just as important as tangible value. Perceived and tangible value can be created by a combination of proper marketing, benefits, and competitive pricing.

More often than not, home sellers do not mind the first two factors, but find the third (competitive pricing) to be excruciatingly painful. Despite the pain, real estate owners need to have their Realtors evaluate the market and get their property priced according to what has sold in the current month. This needs to be done quickly, because time is not the cure when new listings are coming up every day. New listings make it even tougher to get into that top percentage.

If a seller client says things like, "I can just wait for the right buyer/market" ... or "I don't really need to sell" ... or "I need xxx dollars despite what the research says," then the best advice for that client in this market might be to just get out of the market. This truly is not a time for unmotivated sellers to "play the market" and just see if they can get some unjustifiable price. For motivated sellers who really want to sell, careful adherence to our top percentage principle will help them find buyers and ultimately get their home sold.

What It Means to Buyers

Home buyers also need to understand a few things about the current market. Despite what the headlines read, the best deals on the market are selling, and often selling fast.  Basically, if home shoppers want to become home owners by finding a good deal, they need three thingsgood help, reasonable expectations, and the ability to move quickly.


Real estate is a joint effort between the agent or broker and the clients they represent. In order to achieve success, both parties must understand the market in the same way. This kind of shared knowledge comes from the agent coaching the client on the path toward success. And often that path lies within the ten percent.

Posted in:General
Posted by Lehel Szucs on August 1st, 2008 9:28 AM



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