Archive for February, 2009

Flat Fee MLS in New York

Need to list your home on the Multiple Listing Service in New York, but don’t want to pay a high commission. Try flat fee MLS New York. With flat fee MLS New York you get the same Realtor® MLS exposure offered by real estate agents and brokers for a low, flat fee. You can even opt for monthly payments to make marketing your home for sale even more affordable.

Everyone knows that the MLS is the ’stock exchange’ for real estate. It’s responsible for 75-85% of home sales in New York. Without a listing on the MLS, your property receives far less exposure and buyer interest than listed properties. Unless your property is listed on the MLS there’s a good chance your property will take a very long time to sell, sell for far less money and, perhaps, not sell at all.

Why pay 5-6% or more to sell your home when you can harness the power of the Realtor Multiple Listing Service, Realtor.com and a host of other top web sites and real estate portals for a fraction of the cost. Find out why ‘flat fee MLS’ is the fastest growing segment of the real estate brokerage industry today. Get the marketing exposure and assistance you need in the current market to sell your home quickly and for thousands of dollars in savings!

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Impetus for Flat Fee MLS

Need to hear anymore about the housing market and prices of homes that have fallen all over the country. According to the National Association or Realtors®, there was a 12.9-month supply of inventory in December. So what’s a home seller to do in today’s market. After all there couldn’t be a better time to buy. Now you can get what you want at prices that are more reasonable than they’ve been in years. Buyers are beginning to test the waters again and with so much competition price once again becomes king.

Flat fee MLS offers home sellers a competitive advantage in a buyer’s market. By paying a low, flat fee instead of a relatively large real estate commission, home sellers are able to offer their homes at lower prices. Play it smart on the listing end and you could be one of the winners in this window of opportunity before the majority gets off the fence and start buying again. That’s when you’ll lose your competitive advantage.

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Growth of For Sale By Owner Market

Fortune Small Business recently reported that the FSBO market was shrinking. It cited as its source for this information data from RealTrends. RealTrend’s Steve Murray says that from 2006 til now FSBO sellers have dropped from 20% of the market to 15%. The article also uses the anecdote of David Zwiefelhofer, who designs FSBO Web sites and sells them to real estate entrepreneurs. According to Zwiefelhofer: “I used to get a phone call a day from people interested in FSBO Web sites,” Zwiefelhofer says. “Now it’s maybe one call a week.”
Flat Fee MLS
The number that’s really harder to get at, and probably would give a better indication of the growth of the FSBO market, is how many hybrid FSBO, or flat-fee MLS listing sellers there are. Seller’s who utilize MLS Entry Only brokers often consider themselves to be ‘for sale by owners’ and, in many regards, rightly so. After all, these sellers are really performing all of the tasks that a real estate agent would normally perform with the exception of placing the property into the Realtor® Multiple Listing Service.

If you take the National Association of Realtors® figure of 11% of the market belonging to MLS Entry Only companies and add it to Murray’s 15% and you’ve now got over a quarter of the market selling for sale by owner.

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Real Estate Flat Fee Model Thrives in Down Market

It’s said that difficult economic times often lead to changes in consumer buying patterns. New companies and business models have opportunities to gain ground and take advantage of this during periods of financial upheavals. Now seems to be one of those times in history when the ‘dice are rolled’ and new winners and losers emerge. Right now, the online, flat fee real estate business model seems to be coming of age taking advantage of two major economic trends – financial frugality and use of the ever increasing use of the Internet by consumers.

By 2006 MLS entry only models had gained nearly 11% of the market according to the National Association of Realtors®. A quick glance at Google® results for ‘flat fee mls‘ shows more than 6 million results (up from 2 million in 2007), an indication that more real estate practitioners are offering flat fee services either as their main business or as part of their service offering than ever before. It will be interesting to see what NAR’s next survey says about competition in the real estate industry.

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Housing Incentives – What Do We Want?

The National Association of Home Builders concluded a new survey of consumer buying preferences and found some interesting results. As the nation’s leaders attempt to craft a stimulus package that would, among other things, incentivize consumers to buy houses, the results of this survey acquire additional importance. Chief among the lawmakers solutions is a ‘tax credit’ for home buyers. Yet the results of this survey suggest that a combination of financing and price concessions are more likely to convince consumers to buy a home.

From the survey, among 700 self-described ‘fence sitters’ asked why they hadn’t yet purchased house here’s what they said:
1) 44% are holding out for lower interest rates
2) 41% aren’t sure they qualify for financing
3) 38% are waiting for housing prices to fall even lower.

Asked what it would take to to get past their concerns, the survey suggested that a tax credit alone would NOT be sufficient motivation as a home buying incentive. In fact, tax credits ranked 6th on the list of top 10 things that would motivate buyers. The most effective feature would be a fixed interest rate of 3% which ranked twice as effective as a 3% ARM. A ‘no down payment’ option was ranked twice as effective an enticement as a 10% down. Guarantee of mortgage approval for ‘fair’ risk credit borrowers ranked high in the survey. And, of course, price was a high ranking concern. A 10% below true market value was given as a truly compelling incentive for would be home purchasers. Features that didn’t hold much value to home buyers were ‘free builder upgrades’ or ‘green’ energy efficient incentives.

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