Posted by admin on March 30th, 2006
Agent ethics questioned by a segment on ABC
The National Association of Realtors is once again defending the reputation and ethical practices of its nearly 1.5 million members. After a segment aired on ABC, “What Your Broker Won’t Tell You”, depicted real estate agents as liars and crooks NAR responded by maintaining the segment was “very inaccurate, grossly misleading and an unfair depiction of the nation’s Realtors”. The segment implied agents will lie and withhold pertinent information in order to ensure either the sale goes through or the listing is theirs.
The segment provided examples of some of the information an agent may not impart to their clients and examples of some responses to clients that may need “decoding”. Given all the information available to home sellers via the internet it is curious why any one would enlist the services of a trade group that is constantly under scrutiny from not only the media but the government as well. Alternative models like flat fee MLS brokers – a hybrid of For Sale By Owner and MLS listing – and discount brokers provide an opportunity for home sellers to remain in complete control of the transaction. Why hire an agent to assist in the single biggest decision of your life, if he cannot be totally trusted?
Home sellers now have the opportunity to control every aspect of the transaction. Home valuation sites like Zillow and Real Estate ABC provide accurate market analysis and pricing information which is the most important aspect of listing the home. No longer is the MLS the only source for comparative data. With information only a click away home sellers can utilize available tools to retain complete control of the transaction.
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Posted by admin on March 29th, 2006
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.
Posted by admin on March 28th, 2006
Home Sales in February Exceed Industry Forecast
After economists forecasted a drop in the annual rate, home sales experienced the biggest jump in two years indicating a surprising strength in the housing market. The 5.2 percent rise from 6.57 million in January to 6.91 million in February was the biggest jump since February of 2004 according to the National Association of Realtors. These figures are based on when a home sale closes not when a contract is accepted. So the warmest January on record, coupled with the dip in interest rates may have aided in increasing the sales figures for the month.
While the median and average sales prices have reduced from January to February, sales levels are much ahead of where they were just one year earlier. Last year posted a median sales price of $189,000 and an average sales price of $249,000 compared to a median sales price of $210,000 and an average sales price of $256,000 for February 2006.
Reports predicting the real estate market to cool off from the record pace of 2005 now seem a little premature.
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Posted by admin on March 28th, 2006
Real Estate Commissions in Danger of Decreasing
Ever since the federal government shined a light on the real estate industry with a lawsuit against the National Association of Realtors and vigorously opposing Realtor supported state bills attempting to ban discount service models the real estate commission structure remains not only a topic of debate, but a hot button issue generating media publicity on nearly a daily basis. The internet has caused people to think, and rethink, the vale they’re receiving from their traditional agent. With homebuyers doing a majority of the work on their own and home sellers taking advantage of flat fee MLS alternatives, where does that leave the commission structure? Sellers are receiving similar public exposure regardless of whether they list for 6% or list for a low fee with a flat fee MLS broker. With the market cooling some industry members see the low or no commission models gaining market share. Other industry veterans plan to "blow up the issue of Realtor commissions". With the media whirlwind surrounding the issue it’s hard to think there will ever be another day where real estate commissions will climb.
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Posted by admin on March 23rd, 2006
Industry Vets Move to Discount Brokerages
The former CEO of Realtor.com and executive for Remax International, Steve Ozonian, is just one of many real estate veterans leaving the old for new. Because the internet has empowered its consumers, flat fee MLS and discount brokers are assuming a larger market share in the industry. Consumers are aware of the added control they can assume during the home sale/purchase transaction bringing question to the current commission structure. Though some consumers see no problem with the commission structure of 5.5% to 6%, consumers should not have to use the current model. The offerings of flat fee MLS companies and discount brokers are providing services as they are wanted - you pay for what you get, not pay for what you don’t want or need.
Given the state of the MLS systems it is likely they will become more consumer friendly and less guarded. The Department of Justice is working to ensure the National Association of Realtors doesn’t discriminate against any form of competition. Advisory boards are currently in meetings to discuss the future of the MLS display of information. If the MLS information becomes even more consumer available, then it is likely we will see a continued growth in market share for flat fee MLS brokers and discount brokerages.
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Posted by admin on March 22nd, 2006
Surveys Reveal a Change in Realtor Support
As MLS consolidation and data-sharing increases at a rapid rate, the support for such changes is waivering. Realtors have shown decreasing support for the new major trends and display of lisitngs on websites other than their own. While the general public is overwhelmingly in favor of MLS public wesites, Realtors view such sites are competition with their own agent and broker sites. Which brings the question, what’s wrong with competition?
Are agents worried about a possible trend in MLS listings moving to flat fee MLS? They could be. With flat fee services providing the same website exposure as any traditional agent, how could they not be? The single most important tool for a home sale is exposure and there is no need to pay 6% for the same exposure you can get for a low flat fee.
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