Five Star Rating
Ever been planning a trip away and checked one of those hotel ratings websites? Regular users know a five star rating is less meaningful if the number of reviews behind it is actually very small.
To have any real meaning, averages, ratings and percentages all need to be based on a decent volume. This is especially true when a seller is evaluating buyer feedback, and never more so than if the indicative market value falls short of expectations.
Without enough volume behind it, any pricing information the agent relays will not be seen as legitimate market feedback. It’ll just be the view of a “bunch of idiots” who “don’t know what they’re talking about”.
Critically, the volume needed to provide a convincing argument will vary by property and by owner. That’s why the best agents clarify what constitutes a reasonable sample size with their seller before the campaign even commences. Where seller expectations on inspection numbers are unrealistic, the agent will moderate those expectations by communicating current market averages. With a clear understanding on both sides, the agent can then go about delivering the necessary volume of traffic. Only then will the subsequent feedback about market value become meaningful.
The magic happens when the market speaks, backed by the power of numbers. That’s when ratings (or any other data) really become five star.
All the best,
The Auction Group