Posts Tagged ‘Flat Fee MLS’

Canada Realtors to Decide on Flat Fee MLS

The Ottawa Citizen reported today that the Canadian Real Estate Association will ask its members to bow to the demands of the Competition Bureau of Canada and allow easier and possibly cheaper access to its Multiple Listing Service (MLS). Association president Dale Ripplinger said Wednesday its 98,000 members will be asked to allow agents to list a home on the MLS for a flat fee without forcing customers to accept a bundle of other real estate-related services, such as the agent presenting all offers.

Earlier this week, the Competition Bureau said the association’s practice “limits consumer choice” and prevents realtors from being more “innovative” in their services. The bureau announced, after a lengthy investigation into the real estate market, it would proceed with its case and haul CREA before the federal Competition Tribunal to force an end to the practices. CREA will ask its members to make changes to rules governing MLS at their annual general meeting March 22 in Ottawa. If accepted by the membership, a home seller would be able to pay a flat fee to a real estate agent for an MLS listing, without having to sign an agreement for further services from the agent.

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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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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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Listing your home for sale

Listing your home for sale? You’ve got options! You could pay a traditional real estate broker a 6% commission to list, market and sell your home for you. Or you do it yourself and save the commission. 6% might not seem like a lot compared to the sales price of your home, but it generally represents a significant portion of your home equity (that’s the money that’s your’s to keep after all of the expenses of the sale have been paid).

What if you could sell your home and save half of the commission for yourself? That’s $3,000.00 for every $100,000 of your sales price!!! Now you can with flat fee MLS listing. For prices in your area visit www.bloomkey.com. With flat fee MLS you get the same marketing exposure provided by real estate agents without having to give up home equity to real estate listing commissions. And, if you need additional services or tools, like real estate forms, for sale signs, etc, you can purchase just want you want, at a price that makes sense.

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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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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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