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4The following was posted on an Internet real estate discussion site.
"Of the two leading real estate firms in our town—Adams Realty and Fitch Realty—Adams is clearly superior. Adams has 40 real estate agents. In contrast, Fitch has 25, many of whom work only part-time. Moreover, Adams' revenue last year was twice as high as that of Fitch, and included home sales that averaged $168,000, compared to Fitch's $144,000. Homes listed with Adams sell faster as well: ten years ago, I listed my home with Fitch and it took more than four months to sell; last year, when I sold another home, I listed it with Adams, and it took only one month. Thus, if you want to sell your home quickly and at a good price, you should use Adams."
To draw the conclusion that to choose Adamsas house selling agent rather than Fitch, the author listed several reasonsthat seems susceptible to me.
First of all, the performance of a realestate firms may to some extent related to the estate agents but we can'troughly decide that a company with 40 full time agents will give you betterservice than a company with 25 part-time employees. It is possible that part-timeagents would be in better attitude and with more passion in this job becausethey don't have to face the same task from darn to dark, from Monday toSaturday like the employees in Adams do. Andthey may have much wider social communities to get information because of thetype of their work. Also, there's no mean to conclude that the Adams is more efficient than Fitch just due to the numberand work type of workers.
Secondly, the revenue of Adams and B theauthor gave still can't assist his ultimateness. Revenue is different withprofit, if knock off the salary of 40 full time workers, I doubt whether thepure profit Adams make can be better than Fitch although the Adams 's revenueis twice as much as Fitch 's. Since Fitch may pay less money to it’s workers,the situation that Fitch get a lot of profit while Adamsloose money in the business can be occur. Similarly, the higher average priceof house of Adams can't stand for anything.The author fail to tell us that are the house that Adams and Fitch sold of thesame type? Maybe the average basic cost of house of Adamsis more than $168,000 while Fitch's is less than $144,000. In this case, Fitch obviouslydo a better job because they sold their house in a better price and help customersearn money. But for those who choose Adams, theyget no profit at all.
At the end, the author gave us his ownexample that makes his argument even less convincible. To compare the efficiencyof selling house between Adams and Fitch, the author forget there's almost adecade passed. The estate market mayhave huge changes during the ten years, maybe more people are willing to investin real estate than before, and maybe due to the population growth, number ofhouses can’t meet the need now. And the condition of the author's houses mightbe different. A very old house located in a remote country area is more likelyto take a longer time to sell than a quite new house in downtown.
To convince us that Adamsis better than Fitch, the author should give much more details about the efficiencyof workers, the pure profit, their price to sell a house in a similar situationof both companies. Also he must show us the difference of market and conditionof both of his houses. |
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