Archive for the ‘Real Estate’ Category

Flat Fee Real Estate Advertisting

Flat fee MLS has become the preferred advertising method for by owner real estate sellers. In fact, no other mode of advertising is more effective for home sellers in reaching the largest groupd of home buyers. The math is simple. You can pay a few hundred dollars for flat fee MLS listing with an online real estate company like Bloomkey.com or HouseZooks.com and reach millions of potential buyers. Most flat fee MLS listing packages last for 3 to 9 months – some for up to a year or even ‘until SOLD’. Or you can pay a similar amount to a local newspaper to reach a few thousand people. But newspapers classifieds usually last for just a few days.

As an advertising medium it’s hard to beat the Internet these days. A flat fee MLS listing with Bloomkey not only provides a listing on the Realtor Multiple Listing Service but also includes advertising on the leading real estate sites like Realtor.com, Trulia.com, Zillow.com as well as most of the major real estate franchises’ websites like Century 21, Prudential, Help-U-Sell, etc. When you stop to think about it, it’s really quite astounding how far your marketing dollars will go with a flat fee MLS listing. What just a few years ago would have required a real estate owner to give up 6% times their property’s sales price can now be obtained for less than the cost of a newspaper classified advertising campaign. Chalk it up to the economies of the Internet.

As with so many industries, Travel and Stock Brokerage to name two, the Internet has drastically impacted the costs associated with gaining access to the market for consumers. The efficiency afforded by being able to reach so many people for so little makes the Internet the perfect medium for real estate. Flat fee MLS is the best way to take advantage of the evolution of real estate marketing.

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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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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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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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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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FSBO Method Offers a Good Value for Your Home

In the real estate world, you can be successful if you sell your home using the method that is right for you. If you are preparing to sell your home on your own then make sure that the FSBO signs are attractive enough to entice buyers. Firstly, you should place a large board with the phrase “ for sale by owner “, in your yard. If the letters on the board are large and in bold, then investors or on lookers will surely notice the board and come up to find out more about your home.

Marketing your property well is very essential for selling your home. If your home is located in a lane, then place the signs on the main road that is closest to the lane, giving the proper direction to your home. Plenty of buyers may pass through that road and in that process take a look at your advertisement. The signs will surely attract buyers because they denote that no middleman or broker will be involved in the selling process. Just like you, buyers too like to deal directly with the seller.

Thus, give a break to traditional brokers and think about the FSBO method for getting a good value for your home.

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