Posted by admin on September 21st, 2006
When you list with IHS Realty’s flat fee MLS service you get exposure through the National Association of Realtors as well
REALTOR.com is the official site of the National Association of Realtors (NAR). When you list your home with IHS Realty’s flat fee MLS service, you get automatic exposure through the NAR. You get the most exposure and access to our staff’s knowledge and expertise. In a word, we will not leaving you hanging and you are not on your own, but you do save the enormous real estate commissions.
Learn more about flat fee MLS right now.
Posted by admin on June 27th, 2006
Alternatives to the traditional real estate commissions
At a recent convention Steve Levitt, the author of "Freakonomics," shared some interesting facts and views about the real estate industry. He has been criticized by the National Association of Realtors and many agents for his prediction for the future of the real estate industry. His findings include:
- Due to low entry barriers for new real estate agents the median income has not increased over the last 10 years even though prices are up almost 70 percent in some places.
- Real estate agents tend to sell their own homes for about 3 percent more than the selling price of their clients’ homes.
- Real estate agents tend to leave their own homes on the market about 10 percent longer than their clients’.
He also shared a story criticizing the ethical motivations of real estate agents citing a personal experience. He contacted the listing agent of a home he was interested in order to determine a minimum offer that would be considered by the seller. The agent then explained the seller would be willing to accept offers significantly lower than the asking price so she could pocket an extra $20,000 to 30,000 in commissions costing her clients over $50,000. Sound fair? This problem certainly would not be encountered using a flat fee MLS service, where you - the seller - are in control of the transaction. Cost effective alternatives like flat fee MLS provide a viable option for home sellers and for sale by owners to market their homes. In fact Levitt explains he thinks flat fee MLS and limited service brokers will provide the knockout punch to the traditional model.
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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 18th, 2006
Property information being made public by MLSs
Home valuation and real estate tech sites have added pressure to the ever-changing face of real esate and the way MLSs and brokers alike display their property information. Under the pressure Northwest Multiple Listing Service, which serves western Washington, Prudential, and Zip Realty have made the decision to provide sold property information for public display. With the ongoing litigation between the Department of Justice and the National Association of Realtors it will be interesting to see if this becomes the norm or just an anomaly. Websites like Zillow.com and competitor RealEsateABC.com have increased consumer knowledge of home valuations and provided a springboard for home sellers to assume more control over the sales transaction. With accurate home valuations sellers can now confidently list their homes through alternative models like flat fee MLS brokers and discount real esate brokers eliminating the high commission structure demanded by full service brokers and agents.
Posted by admin on May 17th, 2006
Consumers can opt for lesser services if inclined
Tennessee has passed a bill establishing minimum service requirements for all real estate licensees unless such duties "are specifically and individually waived in writing by a client." The bill mandates licensees assist clients in the showing of properties, receiving all offers and forwarding them to the client, answering client questions during negotiations and advising clients as to what is needed for a successful closing. The passing of this bill comes on the heels of the rejection of a similar bill in
Kentucky that sought to establish new minimum service requirements. Attempts of legislation and state regulators to establish such "minimum service" requirements have been opposed by federal agencies like the Department of Justice which say such proposals restrict consumer choice and have an anticompetitive effect on the real estate industry. These minimum service requirements are a rash, direct response by the traditional agents and the National Association of Realtors to impede the growth of, and eliminate flat fee MLS brokerages and discount brokerages. Their weak basis for such claims and laws only reflect the hypoocracy and lack of ethical fortitude the National Association of Realtors is working so hard to overcome. For supporters of these measures to hide behind the facade of worry for consumers is a farce - if they are worried about consumers then give them a choice. Preventing competitive models only serves as a way for agents to ensure commission rates will be fixed for years to come. Worried for consumers…give me a break. Agents are scared, and NAR has the clout to fight.
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Posted by admin on May 4th, 2006
Think-tank deliberates over the future MLS structure
From a consumer stand point both home sellers and home buyers would stand to be the benneficiaries of increased marketing exposure through a nationally consolidated MLS. The only problem is brokers are requesting protection of information and content which not only hurts a seller wanting public exposure but limits the exposure brokers would get from there own listings. But it seems if there is one constant in real estate it is agents love "to shoot themselves in the foot." In the last year the Department of Justice has questioned and filed suit against the National Association of Realtors regarding property data and the control of such information. NAR has only brought more attention to its "anticompetive" policies recently by implementing minimum service requirements of a broker listing a home. The suits filed by the Department of Justice have raised consumer awareness of alternative listing models bringing attention to the current MLS structure, commission structure, and restrictive display of information. Flat fee MLS companies and real estate discounters are gaining market share all the while thanking the broker associations that got the attention of the DOJ. A nationally consolidated MLS could benefit the masses if created as a consumer-friendly database that is broker controlled.
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