Posted by admin on May 31st, 2006
The future of the real estate industry
Is there an easy answer to the question about where the real estate industry is headed? It doesn’t seem that way at this point. With the anti-competitive legal battles continuing between the DOJ and the National Association of Realtors (NAR), it’s hard to determine exactly what the future may hold. Although, it seems NAR is not going to lie down and allow flat fee MLS and discount brokers to have the same effect on their industry as discounters had on the stock brokerage and travel industries. But, lucky for discount brokers, it seems this is a double edged sword for NAR, as the harder they fight the more press they draw to alternative listing models, the outrageous commission structure that has been in place forever, and "fixing" that seems to take place in real estate. Isn’t weird that, theoretically, an agent is doing the same work for a $100,000 listing as they are for a $500,000 listing but will be compensated five fold for the latter? As flat fee MLS companies and discount brokerages continue to assume a larger market share, one must wonder if NAR is fighting in vain to prevent change. A homeowner should be afforded the opportunity to decide what services are needed in order to sell the home, not obligated to sacrifice 6 percent for a bundle of unwanted services. It is no secret that the exposure created through an MLS listing cannot be attained as a for sale by owner, so why not allow consumers to utilize a real estate professional who is willing to unbundle the services and offer them on an a la carte basis? To me it’s simple, NAR is attempting to eliminate competition and it is up to consumers to voice their opinion and concerns. Don’t get stuck without a choice!
Posted by admin on May 30th, 2006
Use flat fee MLS to market your home more competitively
For the eighth consecutive month real estate sales fell in April. Closed home sales were down 14 percent, the number of homes put on the market was down 22 percent and days on market was up from 94 days a year ago to 104 days in April. Even with the dropping numbers Kit Hale, president of the Virginia Association of Realtors, remained optimistic saying “we’re now making the transition back to a more normal marketplace where conditions show better balance between buyers and sellers.” As a seller the spring time is a great time to put a home on the market, but under these conditions it is more important than ever to price the home competitively. As a “for sale by owner” using a flat fee MLS broker you have a competitive advantage over homes sold through a full service agent. Because you are saving a minimum of 3 percent with flat fee MLS on the sale of your home you can be more flexible with the asking price, lowering your overall list price while still pocketing more equity than if you used a full service agent.
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Posted by admin on May 25th, 2006
The competition between traditional agents and limited service companies increases
With the slowing real estate market nationally, the battle for listings is getting more intense. Consumers have more options than ever before and are weighing them before making any decisions. It is no longer a given that homeowners are going to enlist the services of a full service broker as the number of online flat fee MLS brokers, real estate discounters and for sale by owner forums have increased drastically over the last 5 years. With all the choices the debate begins which method is better? Full service brokers argue they offer a more focused marketing campaign, while flat fee MLS brokers argue the sellers are paying too much for the negligible marketing difference. Flat fee brokers save sellers thousands in equity, but full service agents claim they are worth the 5-6 percent. Ultimately, the debate will be settled by home sellers over time and only then will we see what the end effect of technology has had on the industry.
Posted by admin on May 24th, 2006
Author Danielle Babb has announced she will be releasing her book, "Commissions at Risk: A Real Estate Professionals Guide to Beating Online Competition," in October 2006. This book will help position agents on how to re-invent thier business based on the use of technology. The book comes as a response to the growing popularity of "low cost and flat fee brokers, as well as automated systems that cause distress for real estate agents." Flat fee MLS and discount brokers serve as a valuable tool in marketing a home for sale as it maximizes a homeowners potential exposure and allows sellers to retain all the rights of a for sale by owner.
Posted by admin on May 24th, 2006
MLS losing value to alternative websites
As Move.com unveils Mike Long, CEO of Move Inc., wants to take back what he believes companies like Google, MSN, and AOL among others have taken from the Realtor community. His misguided frustrations are lashed at third party websites that have simply created a valuable and viable marketing alternative to the 5-6 percent it would normally take a home seller to get into the MLS through a full service realtor. It seems to me Long has missed the point. Instead of updating and providing improvements to the structure of the MLS, he is mad there is competition, citing that Google Base will become an unrestrictive, uncontrolled platform for "for sale by owners" with no realtor influence. As flat fee MLS providers have entered the real estate industry and gained increasing market share it has been revealed that the MLS, from a listing standpoint is no more than a classified ad focused primarily to real estate agents. And, now that MLS listings are being displayed throughout the internet either by local brokerages or by third party websites like Yahoo! Real Estate, individual listings are getting enhanced and increased marketing exposure. At this point low cost, alternative models seem to be gaining in market share and popularity as the public perception of the realtor community and their services is changing. It is not a conspiracy to "disintermediate Realtors" or "carve a big chunk out of Realtor commissions" as Long states, it is an alternative that allows sellers to assume a greater control over their transaction in a cost effective way. It is about maximizing exposure without sacrificing equity.
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Posted by admin on May 18th, 2006
What’s the biggest influence on the real estate industry
What has had the biggest effect on change in the real estate industry? Has it been lawsuits filed by the Department of Justice providing increased awareness of flat fee MLS companies and limited service brokerages? Has the internet and the display of MLS listing information had the greatest effect? Or has it been free websites providing home valuation information to home sellers? Whatever the answer, one thing is for sure, the industry is changing on a daily basis. There are more alternatives to selling with a traditional agent than ever before and the internet has empowered home sellers. Sellers can learn home valuations, search for homes currently for sale in their area for pricing, list in the MLS and create home fliers all from the convenience of their own PC. It will be interesting to see over the next few years if technology will have the same effect on the real estate industry as it did on the travel agency industry.
Posted by admin on May 18th, 2006
You have more options than you think as a For Sale By Owner
If you are selling your home by owner give your home the maximum exposure. As a "for sale by owner" you can advertise in local print media like newspaper, classifieds, and magazines but realize that over three-quarters of homes sold, are sold through the local Multiple Listing Service (MLS). Take advantage of MLS exposure without sacrificing equity by listing your home with a flat fee MLS broker. Flat fee companies provide many of the same services as a traditional agent at a fraction of the cost. As a flat fee MLS customer you provide your home with maximum exposure while maintaing all the rights of a for sale by owner, limiting realtor commissions. In most cases you will receive a yard sign, home fliers, required disclosure forms, selling assistance and your home will be listed in the local MLS, brokerage websites, Realtor.com and other popular regional websites.
