December 29, 2006 – 12:23 pm
Now it’s time to play fair
Local multiple listing services are being challenged both internally and externally. In regard to internal issues, in my opinion, we have been too slow to adopt the changes necessary in governance and mergers/acquisitions to keep pace with the external challenges. In regard to external challenges, sometimes we move too quickly, sometimes not quickly enough, to meet and address the issues.
Local MLS services responded to the challenges of the new world by bullying nontraditional brokers. They weren’t prepared for the fight that lead to with the DOJ and consumers. Now, they are forced to adapt. Meanwhile, nontraditional brokers have a head start on the new communication media that allow us to connect with consumers. Realistically, there’s enough real estate to go around. There’s no reason we can’t all play on the same field.
See Also
- What Is The MLS?
How consumers can benefit from the system that realtors have used for decades.
Sell quickly and save
When selling on your own you should be realistic with your expectations - know your local housing market. Once you have a feel for how homes around you are selling you can develop a selling plan. Over the past year most metro areas have seen an increase in days on market, so as a for sale by owner you need to set goals and timelines. Current market conditions will determine an asking price as well, so you may decide to start at a certain price and keep it there for 15 days, if it does not sell offer a bonus - versus lowering the price - for 15 days, etc.
Flat fee MLS companies and other limited service providers offering services on an a la carte basis will also increase your marketing exposure. While there are no guarantees, over 80 percent of homes are sold through the local MLS. Getting listed in the Multiple Listing Service will provide you marketing exposure through literally hundreds and hundreds of public websites, that you otherwise would be missing out on.
Lastly, don’t be intimidated. Don’t be intimidated by the process, the paperwork, or agents out there that want you as their own clients. You are trying to sell your home at the best price and while retaining the most equity. Good luck!
When selling your home know exactly what services you are getting
As a home seller nothing is more important than knowing exactly what services you are getting from your agent. With flat fee MLS companies all services are made available on an a la carte basis so sellers know what to and not to expect. If you are considering listing with a full serivce agent be thorough. You don’t want to sacrifice thousands of dollars in equity to receive the same services you can get for a fraction of the cost. There are many full-service agents out there that don’t do anymore than list the home in the MLS and wait for a sale. When you consider that you will be paying out 3 percent of your home’s final sales price to compensate a full-service listing agent you should weigh all the options. Is an agent really going to do $10,000 or $12,000 worth of work. Before you sacrifice that much money in equity, you may be wise to list your home as a for sale by owner in the local MLS through alternatives like flat fee or discount brokers, where you can control the advertising aspect of the sale.
Differentiate your home from others in the area
Real estate inventory in the largest 100 markets in is up 60 percent in May 2005 compared to May 2005 based on MLS studies nationally. The swell in inventory has forced home sellers to lower asking prices significantly. As inventory increases and competition stiffens it is important to provide some added incentive for agents to sell your home over a neighbor’s. Flat fee MLS provides home sellers an affordable opportunity to maximize marketing exposure through the local MLS and public websites like Realtor.com. Because sellers are saving 3 percent on the listing side of the transaction they can offer buyer agents up to 1-2 percent more compensation to sell their home than the local competition while still pocketing more equity. Buyer agent compensation is not the only way to differentiate your listing, be sure your home is a "Showcase" listing on Realtor.com. Showcase listings display a catchy headline, multiple photos, customized description, open house announcements and more. Consumers using Realtor.com to search for homes are searching homes offering virtual tours and multiple photos first. Increased inventory means sellers need to increase marketing.
See Also
