Posted by admin on November 29th, 2005
Longtime Realtor critic proposes a nationwide Multiple Listing Service
David Barry, a San Francisco lawyer who has engaged in numerous lawsuits against Realtor organizations over the past 25 years released a report Monday to the US Department of Justice (DOJ), in its study of Competition in Real Estate, proposing a National MLS system to replace the many local MLS systems run by Realtor organizations around the country. The 82 page report calls for, among other things, a national Multiple Listing Service to be created through federal legislation.
Barry’s contention is that the Realtor controlled local and regional MLSs now in place create an inherently unfair and biased marketplace for real estate property listings. According to Barry, "…the MLSs aren’t just near-monopolies, they are 100% monopolies. The MLS system is so complete, accurate, so fast, rich in detail, powerful, and cheap, it’s blown away every other real estate information source. In the markets we’ve studied, the Realtor associations can’t find a single active realty agent or appraiser who doesn’t use the MLS."
By requiring Realtor association membership for MLS access, the National Association of Realtors (NAR) has grown to become the largest trade organization in the world. Barry’s studies show that over a half a billion dollars have been forced from realty agents and appraisers by the MLS tie-in in the past 6 years.
Barry’s conclusion: "Organized real estate is beset with illegality. Despite spending over a trillion dollars a year on homes, consumers don’t get what they deserve. Agents are victimized by their trade association, the National Association of Realtors…DOJ should sue NAR for (named within report) violations and dissolve NAR. Half a century of price fixing and monopolization is enough."
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Posted by admin on November 27th, 2005
Talk of housing bubble overstated. Home sales remain steady,
With all the talk recently of a housing bubble, what can home owners expect in the months ahead? Comparisons to bubbles in other industries fail to take into account several salient factors with regard to real estate.
For instance, the tech bubble of the 1990s saw stocks in that industry tumble nearly 80%. Can we really think that the same kind of correction could take place in the real estate market?
Real estate differs from other assets in many important ways and is affected on a regional basis more often than a national one. A correction in one area of the country doesn’t necessarily spell a nationwide housing price drop. While it has become much more difficult to buy a home in many cities, in others it has actually become easier, pointing to a boom taking place regionally, rather nationally.
In comparison to stocks or bonds, homes are largely illiquid assets that can take a significant amount of time to sell as compared to stocks which are negotiable securities. Different factors drive housing prices such as mortgage interest rates, the local economy and housing supply and demand.
The United States leads the world in population growth. Not suprisingly, this increasing population needs housing. Children of the baby boom are now reaching home buying age.
It may be that housing prices are due for a correction, a slow down is likely, but home sales should remain steady and will regain momentum throughout the next decade.
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Posted by admin on November 23rd, 2005
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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Posted by admin on November 21st, 2005
For Sale by Owner’s and Flat Fee Listings are popping up more often for good reason
About 15% of all homes are sold without a real estate agent (For Sale by Owner). Many are predicting that this number may rise dramatically as the housing market softens. High loan-to-value ratios, increased home equity loans and other factors could result in many sellers deciding that they cannot afford to pay 5-6% in commissions when selling their home.
Add this to the high growth in real estate values and the temptation to try something different will likely drive more consumers to seek out alternatives when selling their home. FSBO services now range from simple website placement to flat fee MLS listings to document preparation.
Most of these companies offer these services for fixed fees rather than commissions and are a fraction of the traditional brokerage commission. "It’s just really hard to pay that $22,000 commission," Debbie Carbonatto ( a FSBO) said, adding that they already have sold one home themselves, with good results.
"FSBO can be a real win-win for buyer and seller," she said.
Posted by admin on November 17th, 2005
Alternative brokerage model offers home sellers equity savings in up and down markets
Signs of a slow down in the real estate market have home seller’s wondering whether they can still demand the same high prices for their homes as their recently sold neighbors. And, more importantly, how much equity can they hope to realize from a sale in a buyer’s market.
New brokerage models, such as Flat Fee MLS and online discount real estate companies now provide a way for home seller’s to maximize their equity even in a slower market. By providing alternatives to the 5-6% commission rate charged by traditional brokers, home sellers may now offer their homes for less and still come out ahead.
For as little as $399.00 consumers can remain competitive in the home marketplace by listing their homes in the Realtor Multiple Listing Service and on Realtor.com. Real Estate Services in most areas are available on an a la carte basis whereby a seller can do some or all of the work themselves and save thousands of dollars in real estate commissions.
As the real estate commission in the United States is the largest portion of a home owner’s costs of selling, finding more efficient and ecomonical means to sell are becoming more and more important as the market cools.
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Posted by admin on November 15th, 2005
How to Maximize Home Equity in a Slipping Market
The latest report on third-quarter home prices, released Tuesday by the National Association of Realtors, showed continued strength. But increasingly there are signs that prices have plateaued. So is now the time to reap the benefits of your home investment?
While home price increases are sure to slow, for most homeowners there is still ample opportunity to maximize their real estate investment. Homesellers need to adapt to a more competitive market by taking advantage of the newer programs available to them. For Sale By Owner ( FSBO ) web sites, especially those that offer MLS ( Multiple Listing Service ) placement, are very effective for marketing your home. They also cost from 45-90% less than traditional brokerage.
With these savings it is easy to see that even if prices move slightly downward, homesellers can still retain their home’s maximum value.
Posted by admin on November 9th, 2005
Preparation is the key to FSBO Success
It’s estimated that nearly 50% of home owner’s will attempt to sell by owner at some point during their lives. However, according to NAR studies, only about 15% of For Sale By Owners are successful.
Why the huge disconnect? Apparently most FSBO home sellers are not prepared for what’s involved in selling a home privately. Getting prepared to sell by owner means doing your home work. And that starts with setting a realistic price. Most FSBO seller’s think that they should set their price at or above the market because, they reason, "I can always come down later". As any real estate agent will tell you, this is marketing suicide.
Most traffic to a home for sale comes during the first few weeks of going on the market. After that, home buyers trickle through. The longer a home sits on the market, the lower the eventual sales price.
MORE INFORMATION on preparing a home to sell by owner.
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