The AI Listing Effectiveness Grade – A Data-Driven Approach to Evaluating Listing Agents
By Rob Uhrina, Head of Marketing, Relitix
Published: December 13, 2024
The Listing Effectiveness Grade, available exclusively from Relitix, uses data science to help brokerages and recruiters evaluate agent performance. It applies a clear, data-driven system, rating agents on how effectively they manage property listings.
How the Listing Effectiveness Grade works?
Using MLS data spanning 3 to 18 months, the Listing Grade Metric evaluates agents on critical dimensions such as time on market, pricing accuracy, and sales outcomes. Agents are ranked on a curve, with the top 20% achieving an “A” and the bottom 20% earning an “F.” This distribution highlights performance disparities across the market, offering unparalleled insights into agent capabilities.
By applying a consistent framework across all agents in the MLS, it eliminates bias and introduces a scientifically robust method for evaluating success in listing management.
What sets it apart?
What sets this metric apart is its objectivity and precision. By applying a consistent framework across all agents in the MLS, it eliminates bias and introduces a scientifically robust method for evaluating success in listing management. Whether analyzing expired listings, stagnated properties, or timely sales, the metric provides a clear lens through which to interpret market activity.
Why Listing Effectiveness is pivotal for real estate brokerages:
Beyond tracking market leaders with detailed KPIs on sales activity, Relitix Market Share helps brokerages tell the real story. It provides tools for independent exploration, allowing strategists to dial in on market share strengths with highly targeted parameters (price point, time period, location and property type) and discover where they lead the race in many combinations.
1. Identify Top Talent with Precision
For brokerages and recruiters, pinpointing high-performing agents is crucial for maintaining a competitive edge. The Listing Grade Metric objectively evaluates agent effectiveness, allowing firms to quickly identify the “A” players who consistently deliver results.
2. Drive Better Sales Outcomes
By examining metrics like time on market, pricing accuracy, and sales success, this tool highlights agents who maximize profitability and listing efficiency. It ensures firms and recruiters can make informed, performance-oriented decisions when selecting talent.
3. Benchmark Against Competitors
With agents graded on a curve, the Listing Grade Metric provides a clear view of how your team’s performance measures up to the broader market. This benchmarking capability enables firms to strategically position themselves and address performance gaps.
4. Promote Top Scoring Agents in Marketing Materials
The Listing Effectiveness Grade can help home sellers better understand an agent’s track record in selling properties if published to marketing materials, allowing them to make informing decisions when choosing an agent. The rating system effectively identifies top-performing agents and sets a benchmark for other agents to strive for, ultimately leading to a more competitive and efficient real estate market.
5. Strengthen Recruitment Strategies
The objective A–F grading system simplifies the recruitment process. It offers a transparent, data-backed evaluation framework that aligns candidates with the firm’s performance standards, reinforcing confidence in hiring decisions.
6. Build and Optimize High-Performance Teams
The Listing Grade Metric isn’t just for recruiting—it’s a tool for ongoing team evaluation and improvement. By identifying strengths and weaknesses within your existing roster, it empowers leaders to cultivate a culture of excellence and make targeted enhancements.
7. Boost Client Confidence in Top Agents
Agents graded highly can leverage their scores to demonstrate expertise and build credibility with potential clients. This metric enables firms to showcase their top talent and enhance their market reputation.
8. Data-Backed Decision-Making for Growth
By relying on historical MLS data (spanning 3–18 months), the Listing Grade Metric eliminates subjective biases. It provides a foundation for objective, evidence-based decisions that drive sustainable growth and operational efficiency. In an industry increasingly shaped by analytics, the Listing Grade Metric equips brokerages and recruiters with the tools to stay ahead. By turning raw data into actionable insights, it represents the future of performance evaluation in real estate.
See how to do it Relitix.
About the Listing Effectiveness Calculation
The Listing Effectiveness Rating (LER) / Grade is a performance metric for real estate agents that evaluates their ability to sell their listings within a reasonable time frame. This rating system takes into account property characteristics and local market conditions to provide a fair assessment.
A high rating or grade indicates that an agent is more likely to sell their listings quickly compared to their peers, whereas a low grading implies that an agent’s listings tend to expire or remain unsold for longer periods.
The metric evaluates listings taken between 3 and 18 months ago and is updated on a monthly basis. This allows for a dynamic and relevant evaluation of an agent’s performance, reflecting their most recent sales activities. An “A” grade is the highest an agent can achieve with lower performance graded at B, C, D, and F.
About Relitix
Relitix, a leader in AI-powered brokerage management, supports real estate leaders across 130+ U.S. markets. Profiling over 1.2 million agents and brokers, Relitix delivers unparalleled insights to help brokerages recruit, coach, and retain top-performing talent while driving operational efficiency and growth. At the forefront of this innovation is the Relitix Office platform, a groundbreaking solution offering real-time intelligence on agents, offices and listings, including at-risk listings, agent performance, M&A opportunities, and competitive positioning. By leveraging advanced AI and data science, Relitix empowers brokerages to make smarter decisions, accelerate growth, and gain a definitive edge in an ever-evolving market. Learn more at www.relitix.com.
Media Contact
Relitix LLC
Email: marketing@relitix.com
Website: relitix.com
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