Archive for the ‘realtor’ Category

For Sale By Owner

HouseZooks today launched a new website dedicated to assisting for sale by owner home and property seller’s maximize their saving and returns on their real estate transactions. The site includes nationwide real estate property search, home valuation tools, information and statistics on the local real estate market, mortgage rate and closing cost estimation tools. HouseZooks also provides for sale by owner home sellers with an introduction to a local real estate agent who can advertise their property on the Multiple Listing Service for reduced rates starting at just $199.00.

Internet websites like HouseZooks have greatly reduced the cost to consumers for real estate information, marketing and brokerage related services. What once cost home owner’s 6% of their property’s equity can now be obtained for thousands of dollars in savings. Since most people now shop online for real estate, it just makes sense that more property owners are choosing to make use of tools to maximize their real estate returns. HouseZooks allows by owner sellers to compete with real estate agents and brokers by providing the same advertising access to the marketplace.

Property’s advertised with services like HouseZooks also help sellers during down markets when price is so important. Sellers who aren’t having to give up so much of their equity to real estate commissions can price their homes more competitively and still come away with a larger net sale proceeds.

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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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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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IHS Realty’s Real Estate Model

IHS Realty – an alternative to traditional real estate agents
The real estate market is dominated by the use of the Realtor MLS listing which accounts for over 70% of home sales in the country – and some believe that number is even higher.
Any real estate model that ignores the MLS is at this time doomed to failure yet the cost of transacting business using the Realtor MLS is prohibitive – as much as 7% of the home sale proceeds can disappear in real estate agent commissions.
IHS Realty’s real estate model is to unbundle all of the services offered by traditional real estate agents and separately cost them so that home sellers may pick and choose what they wish to use to help sell their home.  Instead of a commission they pay a flat fee – the most essential and popular item is access to the Realtor MLS – hence the term flat fee MLS listing.


See Also

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Is For Sale By Owner (FSBO) right for me?

A Realty Viewpoint survey of homeowners  across the US demonstrated that FSBO’s tend to make more money from selling their home than those using real estate agents AND they sell their homes on average 3 weeks earlier !

According to the National Association of Realtors home owners trying to sell their homes as an FSBO do not actually sell their home or end up listing it with a real estate agent BUT at some time almost half of home owners place their home for sale as an FSBO.

What do we make of this conflicting evidence ?

FSBO sellers make more money and sell faster but those that are successful do their homework and find a good support partner for when they need help and that is exactly what IHS Realty does !

Q. Is For Sale By Owner (FSBO) for me?

A. A recent Realty ViewPoint® survey of hundreds homeowners across the country showed that FSBOs make more money on their home sales than sellers who use real estate agents AND sell their homes three weeks sooner! Nearly 50% of homeowners try to sell their home on their own at one time or another, however According to studies by the National Association of Realtors (NAR), only 14-16% of For Sale By Owners (FSBOs) actually end up selling. The rest end up listing with an agent or taking their home off the market.

See Also

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Get Your Pre-Approval Letter Early In The Process

You don’t have to wait until you have a realtor

Secure a lender. After all of these steps have been taken, it is time to become pre-approved. This means that based on your credit and finances, you are given a commitment for a loan from a lender.

You don’t have to wait until you get a realtor or find a home to get your pre-approval letter. You should do that first. Once you are pre-approved on a loan you can begin your search for a house that falls within your price range. You know how much you can get your loan for, what the limit of your loan value is. It will be much easier to work with professionals and home sellers at that point. It’s a good first step.

See Also

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