Sale-to-List ratios can be artificially inflated by agents who - for instance - significantly underprice homes to create bidding wars. Since the Sale-to-List ratio simply measures the difference between the asking price and the sale price, the bigger the difference, the higher the agent’s Sale-to-List ratio. The difference between asking price and sale price can be huge when significantly underpriced homes sell for their true at arms-length market price. Agents who significantly underprice homes to create bidding wars have extremely high - and often unjustified - Sale-to-List ratios. Unjustified because Sale-to-List ratios are supposed to measure the agent’s ability to get more than the true at arms-length market price, and not an agent's ability to get market price after a bidding war catalyzed by an absurdly low asking price.
That’s one reason you should always check if an agent’s Sales-to-List ratio is inflated. Be wary when an agent is consistently selling all of their homes far above asking. To see if this agent has an inflated Sale-to-List ratio, this agent’s Above, At & Below Metric will show you a breakdown of the difference between asking price and sale price for each of this agent’s home sales during the last 12 months.
Then confirm by looking at the Days on the Market graph on this page; if you see that all or most of an agent's homes sell in less than 44 days, it’s more likely that the agent’s Sale-to-List ratio is inflated due to bidding wars.
Another problematic Sale-to-List ratio issue to look out for is the total number of homes sold by the agents you are comparing. The number of homes sold by each agent being compared should be roughly equal. Because the Sale-to-List ratio is an average of all of the recent homes an agent sold, the agent who sold one home can have a higher Sale-to-List ratio than an agent who sold 10 homes; accordingly, don’t conclude that the better agent is the one with the highest Sale-to-List ratio unless both agents’ Sale-to-List ratios are based on the sale of a similar number of homes. When you use the Sale-to-List ratio to compare agents that sold a similar number of homes, only then can it help you decide between agents.
Finally, make sure that the agents you are comparing with the Sale-to-List ratio have each been selling the same Types of Homes, ideally within the same price range. Listfriendly can help you find this information. It’s on each agent’s page. Remember, the agents’ Type of Homes sold and Price Range of sold homes, should match your home as closely as possible. Meaning, your home should ideally be the same type as those that the agents being compared are selling, and also in the same price range as at least some of the homes sold by the agents you are comparing.