The “mulitple listing system”, called the MLS, gives the broadest exposure possible to homes for sale. In today’s competitive market, you need the most marketing exposure possible, but attempting to sell without the benefit of the MLS can be a like trying to sell shares of stock without the stock exchange. Or, proverbially, “like trying to find a needle in a haystack”. Advertising to the public is a high cost proposition and since you only have one property to sell, the economies of scale work against you. Realtors® have the benefit of having thousands of properties to sell. The MLS creates an efficient marketing system through which Realtors® can cooperate to assist each other in selling each other’s listings.
And through the Realtors® trade organization, the National Association of Realtors®, an MLS listing also gets exposure on Realtor.com, the nation’s leading real estate web portal, you’ll reach even more potential buyers when your property is listed in the MLS by owner. According to a recent survey, over 75% of buyers now start their search for a home on the Internet, most of them on Realtor.com.
Now you can list your home or property in the same MLS used by Realtors® without having to pay a listing commission. List by owner on the MLS with a flat fee MLS listing company like Bloomkey® and you can have the best of both worlds. More exposure to help you sell your home for the highest possible price and still retain the right to sell on your own and not pay a commission.
By admin
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Posted in Flat Fee MLS, Local MLS, MLS, MLS, MLS Service, MLS entry, Real Estate, by owner, flat fee MLS borkers, flat fee MLS companies, flat fee mls broker, flat fee mls brokers, flat fee mls company, flat fee mls listing, home sale, home sales, home seller, home sellers, home selling, home selling alternatives, limited service providers, limited service real estate, list house, list property, listing agent, listing broker, low cost real estate, mls entry only, mls listing, mls listing service, mls listings, mls only, multi list, multiple listing, multiple listing service, mutliple listing service
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Tagged by owner mls, Flat Fee MLS, mls listing, real estate marketing
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When you are going to be selling a home, especially when the housing market is in a bit of a cooling off period or a slow season, there are two things that are absolutely essential.
First, there’s setting the right price. It’s impossible for sellers these days to sell their home when the price is too high, and when the market has slowed a bit, you’re going to find that it’s even more difficult to get your asking price. This is mostly because there are less buyers vying for the property. However, if you’re able to take the time to set the right price for your home – based on other properties in the area and the size and condition of your home – your chances are going to be a lot better. And, of course, when you sell with flat fee MLS, you’re still in a better position to profit when you sell.
Flat fee MLS also addresses the second essential element for selling in a cooling market: exposure for the property. With flat fee MLS, your home will be listed alongside those represented by listing agents and you’ll have the chance to clearly identify all of the house’s best features and selling points. As a result of increased exposure, there will be increased interest and that leads to a greater chance that your home will sell.
What you’ll find when you use flat fee MLS to sell your home is this: you’ll have access to the tools you need to sell your home, be able to access tips and tools designed to help you sell and, even in a cooling market, you’re in a better position to sell the property regardless of what the market is like.
Home sellers sometimes find themselves bogged down by high costs. There are the costs associated with making home improvements inside and out. There are costs associated with marketing and listing. And there are high costs associated with the commissions paid to sellers’ agents.
But if you are a looking to save and have not yet begun to work with a seller’s agent, you’re in luck: IHS Realty’s Flat Fee MLS listings are a great way to save.
You’ll be able to market your home in the same MLS listing directories that a seller’s agent would use. You’ll be able to have access to tips and tools that will make selling your home a simple process.
And you’ll get it all for a low flat fee.
Why pay more for the same services? Home sellers can save with IHS Realty’s.
IHS Realty
Home Sellers: Save with IHS Realty.
Internet Home Services Real Estate Blog
Sellers are saving thousands using flat fee MLS
Saving thousands in equity, while maximizing marketing potential seems to be the motivating factor for home sellers that enlist the services of a flat fee MLS broker. Savvy home owners have quickly come to realize the valuable savings advantage offered by these types of flat fee MLS service providers and discount realtors. Flat fee MLS and discount providers offer the same exposure through the MLS and public websites as any traditional agent with the only difference being, homeowners maintain complete control over the showing and contract negotiation process. With flat fee MLS, customers are afforded the same ancillary services such as home warranties, virtual tours, open houses, and broker assistance (usually available for an additional fee.)
Slight decline for the remainder of 2006
The market continues to show signs of stabilizing although homes sales are expected to decline modestly until year’s end according to David Lereah, NAR’s Chief Economist. Existing home sales are expected to decline by almost 7 percent this year while new home sales are expecting to show a considerably higher decline of nearly 13 percent. Contributing factors to such a decline are the rising interest rates which are expected to hit 7 percent for a 30-year mortgage by the end of the year, and rising unemployment rates. As homeowners prepare to sell their homes in a stiffening market flat fee MLS can provide a competitive advantage to sellers trying to maximize equity, maintain control of the transaction, and create a pricing advantage.
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Traditional agents are fighting to keep market share
In 2002, flat fee MLS listings and discount MLS listings represented less than 2 percent of the market share. 2005 showed a marked increase as 11 percent of home sellers utilized the services of an "alternative" provider to sell their home. As market share has increased for such service providers, full service-traditional agents and brokers have pushed back actually forcing the intervention of the Department of Justice. As litigation continues surrounding the alternative listing models and "minimum service requirements" traditional brokers have found other business models to attack. 2005 has marked the arrival of Zillow and Zestimates, Redfin, BuySide Realty and other alternative models to the outdated real estate transaction process. While flat fee MLS and discount brokers have been a topic of debate for some time now, new models focusing on the buy side of the transaction are coming under scrutiny. Redfin and BuySide Realty have both recently been in the news because agents are boycotting their buyers and refusing to show them homes.
In one case an agent is trying to refuse commission payment to BuySide because it was she who showed the home to the purchaser – even though the purchaser had a buyer agency with BuySide and disclosed such information before seeing the home. In another case involving Redfin, an agent would not take an offer written through the Redfin buyer program.
The bottom line is full-service agents are going to do everything in their power to dissuade customers from using any alternative model, whether a buyer or a seller. But it seems as hard as they push, they are only drawing more attention to the existing commission structure that consumers are growing more and more tired of paying. As a home seller you could be forfeiting $30,000-$40,000 in realtor commissions, the equivalent of a brand new luxury vehicle. You are PAYING that much to SELL your home, sounds weird right?
Another state eliminates consumer choice
The decision of the Michigan State Senate to pass the DOJ opposed bill effectively removes the opportunity for home sellers to take advantage of low cost real estate alternatives. The new bill mandates licensees who enter into service agreements with clients must provide certain services for that client, including acceptance and delivery of offers and counteroffers; assistance in developing, communicating, negotiating and presenting offers, counter-offers and related documents or notices; and furnishing or causing to be furnished a complete and detailed closing statement.
How can laws be passed that stifle competition? The notion that these limited service laws are created out of concern for consumers is absolutely ludicrous. Even though proponents of these minimum service laws maintain that the laws remain neutral with respect to alternative models, that just is not true. The laws increase both the responsibility and liability of the listing broker forcing a change in the existing structure and business model of limited service brokerages. These brokerages include flat fee MLS companies and other discount brokers. Consumers should be empowered with choice and these laws do the opposite. These laws will most likely lead to an increase in fees associated with the home sale.
Enough just cannot be said about how outrageous these laws are!
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Supply catching up to demand
The 45% of agents reporting a higher number of buyers than sellers is far more balanced than the 61% just 3 months ago. The final results of the survey tallied 45% of agents reporting more buyers than sellers, 31% reported more sellers than buyers, and the remaining 24% reported a balanced split. The balanced split could serve as an explanation to other results of the survey.
- Home inventories are continuing to rise
- Multiple offer frequency has decreased by 31% from 70% in the first quarter of 2005 compared to 39% in the first quarter of 2006
- Only 7% of sellers are getting more than the asking price
As the market continues to cool it will be important to use selling tactics for a slow market. Flat fee MLS listing is a good alternative to the traditional method saving sellers thousands in commissions. The MLS is an important marketing tool as 75% of home sales take place through the Multiple Listing Service. Sellers will have the opportunity to use commission savings advantageously in pricing and enticing agents to bring potential buyers.
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Agents withhold listings from public websites
Search engines are growing in popularity as the initial stage in the home research process producing the same search results for small upstart companies as large established ones. Given this fact, real estate agents are becoming more protective of where their listings appear, which begs the question who benefits from this action? Do the home sellers listed with these agents know their listing information is being withheld from public websites, robbing their home of its potential market exposure? Not wanting other agents or companies to profit from a listing is not a good enough reason to exclude listing information from websites other than your own. This fact has been masked behind the facade of concern for the customer and their privacy. It seems like common sense indicates the more people that know the home is for sale the better chance there is of it selling. So isn’t it a duty of an agent to provide the maximum marketing exposure possible for all listings in order to benefit the client in selling their home? Moreover, agents are also now trying to regulate the type of listings that can appear on public websites in an effort to limit the effect flat fee MLS companies and discounters have on market share. As flat fee MLS and discount brokerages grow in popularity it will be interesting to see the changes in the industry.
Average U.S. Home Prices jump again in 3rd quarter
The Office of Federal Housing Enterprise Oversight (OFHEO) , the agency that regulates mortgage finance companies Fannie Mae and Freddie Mac, released figures this week that showed that housing prices in the United States jumped over 12% in the third quarter over 2004. OFHEO’s chief economist, Patrick Lawler, said in a statement issued with the report that the rate of increase in home prices in the third quarter "were extremely strong".
This report comes on the heels of a report earlier this year from OFHEO that showed the largest U.S. house price increase in more than 25 years for the second quarter of 2005. In that report, Lawler said, "There is no evidence here of prices topping out." contrary to reports of an eminent housing bubble burst.
According to these reports, now is still a good time for home sellers looking to lock-in gains from the five year run on real estate prices.
See Also
- Average Home Prices Up 12%
Pace slows from previous quarter, but increase still strong
- HousingTracker
Housing data (including median asking price and housing inventory) for cities/metros across the United States.
Real Estate Agents using the MLS assisted over 75% of home buyers nationwide
According to the newest study of home buyer habits by the National Association of Realtors (NAR), over 75% of home buyers now find their home through real estate agents using the Multiple Listing Service. The study entitled Profile of Home Buyers and Sellers also indicated that 78% were buying a home that was previously owned.
What exactly does this mean for the average home seller? The results of this study indicate that unless your home was listed in the MLS, you would have missed out on over three quarters of the market. One could only surmise that reducing demand for your home by 75% ultimately results in a lower sales price and a longer time on market.
Why do agents tend to primarily, if not exclusively, use the MLS listing service to search for homes for sale when preparing to show homes to their buyer clients? The number one reason is that they know they will be compensated for their efforts. Each home listed in the MLS has a field indicating the amount of compensation to be paid to a buyer’s agent who sells the property. For sale by owner’s (FSBO), by contrast, have no written promise to pay the agent for their work.
Secondly, it’s just easier. The MLS represents a database of homes currently for sale. Agents know that homes published as active in the MLS are for sale and available for showings. Most MLS listed properties are provided with a key lockbox which makes showing the home more convenient for an agent with several homes to show on a tight schedule.
The NAR data indicates that the MLS is, in fact, THE market for home sales nationwide.
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Steps You Can Take When the Market Softens
While economists debate whether the housing industry bubble will burst, there is no doubt that home prices have stopped their rapid ascent. The number of home sales has also dropped with the National Association of Realtors predicting a 4% decrease for next year. With increased inventory, sellers face longer marketing times and increased pressure on price.
There are, however, steps sellers can take to better position themselves when the markets cools. The most obvious factor is price. Sellers should explore all options that provide flexibility when pricing their home. There are several brokerage firms now offering homesellers marketing services at a significantly reduced cost. These savings can be utilized to better price your home against the competition.
Many of these flat fee brokers also allow the sellers to set the amount of commission to be paid the agent that brings a buyer. By adjusting your price and commission, you not only compete on price but also work to better promote your property to the local real estate agents.
