Archive for the ‘real estate broker’ Category

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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Where’s my flat fee?

While most of us were sleeping, something ominous happened in the real estate industry. With today’s financial and housing crisis continuing to savage many American’s savings and home equity, an important alternative that might have helped home owner’s retain the little cash value left in their homes has been eliminated in a number of states. Led by Realtor Associations and under the guise of ‘consumer protection’, a state legislators have been lobbied into passing laws that actually restrict home seller’s choices in real estate services and INCREASE THE FEEs required for selling a home.

The following states: Alabama, Idaho, llinois, Indiana, Iowa, Kansas, Maine, Missouri, Oregon, Texas, West Virginia, Washington and the District of Columbia all now have ‘minimum service laws‘ that require home owner’s to purchase a minimum set of services from real estate brokers if they want access to the market. The real estate commission has long been the largest expense in selling a home, but with today’s high loan to value ratios, that figure has become, in some cases, more than the home owner’s equity in their home. Requiring home owner’s to purchase a minimum number of services, whether they are NEEDED OR NOT, decreases the net proceeds for sellers in these states and, in many cases now, prevents home owners from being able to receive professional real estate services at all.

The U.S. Department of Justice has been fighting for consumer rights in these states, asking state legislatures and real estate commissions not to enact or to repeal these laws. However, powerful Realtor lobbying groups have succeeded in passing into law regulations that essentially strip home owner’s of options and access to the market. During the prior decade housing prices were rising, so most sellers accepted these high commission based fees as a cost of doing business. But in today’s economic climate the minimum service laws have become particularly onerous.

In inevitable ‘reap what you sow’ fashion, Realtors are now facing the results of their actions. Realtor numbers are declining and new online, flat fee real estate companies are thriving in an economic climate that has home sellers actively seeking alternatives in real estate brokerage fees.

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Flat Fee Services Are Popular, But Not As Popular As They Should Be

The playing field is big enough for FSBOs and brokers

…those who engage in For-Sale-By-Owner (FSBO) transactions are hardly a threat to the value of brokerage services.

Ten years earlier — before the emergence of the Internet — the percentage of FSBOs was actually larger. NAR figures show that 81 percent of all homes were sold by brokers in 1995. That same year 15 percent were FSBO sales, 2 percent involved homebuying companies and 2 percent were "other."

That much is true. However, IHS Realty aims to change that.

Many real estate brokers and agents are threatened by flat fee services and FSBO sellers. Truth is, there aren’t as many FSBO sellers today as there were a few years ago. Before the Internet, the number of FSBO sellers was way higher.

Traditionally, FSBO sales go up in hot markets and down in cool markets. But there were actually fewer FSBO sales in 2005 when the market was hot. IHS Realty strives to provide a valuable service to our employees. If you listen to them, we think you’ll find that we’re succeeding. Flat fee services are popular and we wish they were more popular, but we’re also realistic enough to know that there will always be a need for real estate brokers and their team of agents. The playing field is big enough for all of us.

See Also

  • Transaction Broker
    Learn how a transaction broker can help both FSBO seller and home buyer.
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For Sale By Owner Means Big Savings

For Sale By Owner Means Big Savings

Synopsis…

ihsrealty For Sale By Owner Means Big Savings In this episode we talk to Lawrence Bunnell about saving real money when selling your own home by using IHS Realty’s For Sale By Owner program.

play podcast For Sale By Owner Means Big Savings

Company:   IHS Realty
Category:   Real Estate
Interviewer:   Adam Raimer
Production:   http://podcastpublishing.com
Feed:   http://rss.podcastpublishing.com/rss/41/podcast.xml
 
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See Also

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