Archive for January, 2009

MLS Board Requires Out of Town Broker’s Attendance

Interesting article on Inman News about the Triad MLS Board of Directors (read traditional real estate brokers) in Winston-Salem, NC requiring all member real estate brokers’, agents’ and staffs’ attendance at a training session for using a new version of MLS data input software. Lots of great points and counter-points from the traditonal and alternative model Realtors®.

As I see it, the problem isn’t whether or not Realtors® like Ryan Gehris have successfully represented thousands of sellers all over the country (he has). So obviously, to answer the question posed in one comment, yes, he CAN represent sellers without physically being there or ever visiting Winston-Salem. The problem IS that the Boards that make these decision are, without exception, controlled by traditional, full-service, full-commission local agents and brokers who don’t really care if low cost or alternative model competitors are put out. Heck, they’d probably love it if we quit the MLS over it.

It’s just one more example, and there are MANY, of how subtle rules and decisions affecting all Realtors® get twisted in favor of those with power to make it more difficult for innovative business models and new forms of competition (so that they can hang on to the old ways of doing business in the face of growing consumer dissatisfaction). (whew, what a sentence ;-)

A good portion of the Realtor® community still tend to think in their own terms as to what’s best for consumers. After all, many Realtors® truly believe that a home seller NEEDS and should be required to HAVE to pay for all of the possible services a Realtor can bestow. But, the fact is, that many intelligent consumers have decided that they want something else. NAR surveys showed that between 2002 and 2006, entry-only models had grown from almost 0% to nearly 10% of the market. With the current housing market conditions, you can bet that number’s climbed even higher since then. It’s fast growing for a reason, because it’s what the customer wants! – not necessarily what the Realtor® wants or thinks is best.

As an online, flat-fee broker, I have a degree in Information Systems and, with over 25 years in the business, have attended countless hours of Tempo MLS software training. I don’t say this to be bragadocious, but I doubt there’s anything so complicated as to REQUIRE my physical attendance there next week. If there is, then to piggy-back on Philip’s comments, the software vendors aren’t making the MLS software intuitive and user friendly enough and it must take some kind of ‘expert’ hand holding to figure it out. If so, I blame the Board members who approve such poorly designed software purchases.

In this economic environment I simply can’t believe that a tech-company, MLS software vendor would rather have to pay to send their people to Winston-Salem for a week for this type of training – (so it can’t be their idea). I’m sure they would agree that a webinar is a sensible answer (even for the local Realtor® folks who may have trivial conflicts). Why cause 5,000+- Realtors® to have to gas up their cars, leave their businesses, converge on the Association headquarters, sit in a classroom for hours just so they can ‘learn’ about something they can probably figure out on their own. Especially when a simpler, more time and cost efficient method exists. This is a day trip for me, but it requires an overnight stay for some. Even some local Realtors® will probably have to get babysitters or leave children at home or otherwise interupt a perfectly good day. What a waste…

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Housing Inventories Dropping

In a positive sign for the real estate industry housing inventories are dropping. The effect of decreasing inventories on your home sale is that you have fewer homes competing with yours and a better chance of selling. For instance, the California Association of Realtors® Unsold Inventory Index for single-family, detached resale homes in December 2008 was 5.6 months, down from 13.4 months in December 2007. This index gauges the length of time it would take to sell off the total for-sale inventory, based on that month’s sales pace. More importantly, home sale prices in California rose 84.9% in December over 2007, a sign that a housing recovery is under way. Coupled with the pending $825 billion investment the U.S. government is about to make in the economy, there are definitely positive forces making their way into the depressed real estate market.

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Flat fee MLS Most Economical

Flat fee listing is the most economical means of reaching millions of potential home buyers. Better than classifieds ads and all other methods of advertising combined. You simply cannot buy any better exposure for your property for sale or lease at such great savings.

Flat Fee Listing gives your home the same marketing exposure enjoyed by homes listed by Realtors® in the Multiple Listing Service. More exposure with flat fee MLS translates to higher demand and ultimately a higher sales price for your home. With Flat Fee MLS, you pay just a fraction of the traditional cost of listing your home in the MLS.

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fizzbo FSBO for sale by owner house by owner

You hear a number of terms to describe selling your home on your own but what it really means to you is saving money. And, of course, the sense of accomplishment that comes from doing something on your own that requires going out of your comfort zone. Selling for sale by owner is a great way to do both.

Imagine yourself selling on your own; never being required to give up 6% of your home’s equity again; seeing your neighbors in awe of how you’ve accomplished a sale in a down housing market; your sense of accomplishment at having acheived your goals. Try FSBO – you’ll be glad you did!

FSBO sellers get the chance to learn something about their largest investment that home owners who simply turn everything over to a Realtor don’t get. It’s funny that people will take the time to learn about their latest gadget, but when it comes to their most important asset they’d rather not delve too deeply. Perhaps its the idea that selling a home by owner is too complex or that financial transactions are better handled by full-time professionals.

While there is a certain level of complexity involved, thousands of home owners successfully sell their homes every year. And, those who do take the time to learn about the process save, on average, over $6,000! There aren’t too many places you can earn $6,000 in just a few months so maybe it’s worth considering the ‘for sale by owner’ route.

No longer is it an ‘all or nothing’ proposition to sell a house by owner. Today there’s a wealth of information available on the Internet to assist in navigating the real estate transaction. Additionally, there are a number of online companies that provide varying levels of real estate brokerage assistance so that FSBO home sellers can pick and choose which services they need in the event that the process becomes more complicated than anticipated. And, as far as marketing is concerned, online flat fee companies provide the same level of access to the market as that of full-time professional real estate agents and brokers.

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Home Buying Tips

Planning on buying a home this year? You’re sure to get advice from well-meaning family and friends. But, the most important advice is to get started early and soon. Here are some of the top home buying tips for 2009:
Home Buying Tips
Have a Game Plan -Knowing what you want and how to get it are the keys to being successful at almost anything, including buying a home.
Find and Hire a Buyer’s Agent – A good buyer’s agent can help you locate the right home, put together a purchase agreement , negotiate to help you obtain the property at the best possible price and assist you in navigating the unfamiliar real estate waters until settlement.
Get Pre-Approved – A pre-approval letter lets you know how much home you can afford.
What Matters Most – Once you know what price you want to spend on a home, make a list of the most important features you must have.
Negotiate to Win – Again, knowing what’s most important to you will go a long way towards successful negotiations.
Get a Home Inspection – This is the time to discover any hidden defects in the property that affect the value.
Stay on Top of the Process – Making sure all of the contingency deadlines are met and that the settlement occurs on the specified date are ultimately your responsibility. Make a timeline or enter these dates on your daytimer.
Plan Ahead – Make sure you have your moving plans in place as far in advance as possible.

For information about home buyer rebates

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Sell flat fee and get a new car!

Amazing isn’t it? In most markets, a real estate agent makes enough money from the listing and sale of your home to buy a new car. What if you could save that money for yourself?
new car Sell flat fee and get a new car!

Internet flat fee listing services allow you to achieve the same results on you own as you would by listing with a real estate agent. Here’s how it works…

Instead of paying a tradtional real estate broker say 6% of your $500,000 home sales price to list your home in the Multiple Listing Service (along with handling the paperwork and negotiations your behalf), you can pay a flat fee broker a flat fee (usually around $300.00) to place your listing in the MLS and on leading websites. 2 things can happen: a) a real estate agent brings you a buyer or b) you sell the property on your own. In scenario ‘a’ you agree to pay the agent’s broker a buyer agent’s commission (usually about 3% of the sales price). Scenario ‘a’ saves you about $15,000. Scenario ‘b’ saves you almost $30,000!

What about the paperwork, you might ask? Well, in scenario ‘a’, the buyer’s agent will prepare the contract forms. For scenario ‘b’, many flat-fee companies, such as bloomkey.com, offer ‘a la carte’ professional real estate services whereby you can either purchase the real estate forms you need and fill in the blanks or purchase real estate contract preparation services and have the contract forms professionally prepared for you. In either case you still save enough to buy that new car.

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