Archive for the ‘Flat Fee MLS’ Category
The real estate market was overheated during the first 6 months of 2013. Low home inventory, record low interest rates and the lack of new construction were to blame for the unsustainable, rapid price increases and multiple bidding wars for properties.
5 Reasons we do not feel the hyper-inflated housing market will, or should, continue.
- Rising Interest Rates – Interest have risen sharply in the past few weeks and the trend continues up. Current rates will slow the number of homebuyers and speculators that are coming into the market during the next 6 months.
- Marginal buyers have been priced out of the market due to bidding wars, rapid price increases and higher borrowing costs.
- Wall Street and large investment groups are curtailing their buying. One-third of all homes purchased this year were Cash sales. This translates to heavy investor buying, which will slow down going forward in 2013.
- Shocking run up in home prices are not sustainable. In May, home prices were up 12.1% on average. This brings home price levels to a 5 year high. Pricing is now at a point that many of the short term gains have been realized, and the market will fall back to more normal levels.
- Realtors and builders report that inquiries and calls from new customers is down 11%, so far for June.
Summary: We feel that the housing market was under valued at the start of 2013, but a frenzied market chewed through much of the low hanging fruit. With rising interest rates, and increasing inventory levels, we see a move to more sustainable and healthy growth moving forward. It is still an excellent time to buy or sell. Inventory levels will increase, but they will remain on the low side throughout the year. Interest Rates are still at historic lows and price increases, although impressive, leave the average home price far below levels seen in 2006 and 2007.
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Home sellers and investors are a happy bunch this spring. Homes are selling quickly and for very near their asking prices. If your home is on the market and you haven’t had success…you should consider an MLS listing and here is why.
Washington Post writer and real estate expert, Iilyse Glink weigh about why the MLS is the key to home sales and why it works so well.
Studies indicate that most homes sell with the help of a real estate agent. The No. 1 tool to market those homes is probably the MLS. This listing service in most markets gives real estate agents the ability to see and review all listings in an area. If your home isn’t in the MLS, you’re missing the most effective tool to sell your home.
Twenty or so years ago, an FSBO seller would advertise his home in local newspapers and a lawn sign, with InfoTube or InfoBox, to market his home. Few if any of these FSBO sellers succeeded in selling their homes. More recently, the Internet has started to level the playing field, but many buyers still work with real estate agents to buy their home. Those agents rely on the MLS.
An FSBO service may offer various packages to sellers such as you. The more you want, the more you pay, with the top package giving you access to the MLS for six months. We guess you want to give your home the greatest exposure possible and that you wouldn’t want to exclude a major source of potential buyers.
As you decide whether you want an a FSBO package, you must understand what it will take to sell your home. If you overprice your home for sale, trying to sell it yourself isn’t likely to give you a good result.
You still will need to price your home right, make sure your home shows really well, both from the inside and the outside, take great photos for posting on Web sites, create a beautiful brochure for the home, and make sure the description of your home is succinct, emphasizes the good points of your home and accurately shows off its best qualities.
As the real estate market has improved in many areas, you likely have a better chance of selling your home today than you had a year or two ago. But home sellers can make the same mistakes in any market. Again, you need to decide whether you want to spend money upfront to sell the home yourself in a FSBO or try again with a real estate agent.
We think that listing your home on the MLS is a good step toward getting your home sold. Unless you find a buyer that is searching for a home on the many sites out there that carry listings, you might miss out of that one buyer truly looking for a home like yours.
InfoTube.net offers low cost MLS and Realtor.com listing packages that will get your home noticed by millions of homebuyers, who wouldn’t otherwise know your home is for sale. Call 800-858-6000 for more information or visit our website.
Home prices are 40 percent or more off peak in some area’s of the country, so “Real Estate doesn’t always go up.” Selling by Agent or Owner?? Actually, the Banks sold more property last year than either. Dinner conversations now focus on “How can we get rid of this house??” Instead of “Flip this House”. Our worries aren’t about capital gains. Now, we worry that we owe so much, that we can’t afford to sell the house or live in it.
In today’s market, one thing is certain. There is little money to make and every dollar counts. So, if you need to sell, you have 3 options. By Agent; By Owner; By Auction. Should you Pick Door 1, 2, or 3????
By Agent Pro’s and Con’s
Real estate agents provide a comparative market analysis to justify price strategies and make recommendations about staging, showing and the condition of the property.
Agents develop a comprehensive marketing program for your property that includes the MLS, photographs, virtual tours, internet website distribution and Open Houses.
Agents handle the showings, contract negotiations, they offer legal-type advise and they are objective about the property and its condition.
In a slow market with a lot of inventory, agents may possibly do a better job than a do-it-yourselfer. Many seller’s feel that penny pinching in this market may not be a smart move.
- Costs for brokerage services are extremely high. The typical fee is 6 percent of the sales price of the property. Many seller’s find that after they pay 6 percent of the gross price to the agent, then pay off the mortgage, they have no money left from their sale or worst case, they actually lose money on the home.
- The agent may have little experience. They may be difficult to reach or contact. They may not market your home as you want.
- Agent’s work for their own benefit and may have a conflict of interest with their seller’s. They may advise the seller to price their home for a quick sale, not the best price they can get. And, agents make double the money if they sell their own listing. This means if they have a buyer that is interested in their own listing, they work for the buyer, too, not just the seller paying their fee.
- Agents often give short notice or no notice of showings, which is a problem for busy seller’s. In addition, your listing agent is not the person who will typically show your home. This means that the best features and benefits of your property may not be pointed out.
For Sale By Owner Pro’s and Con’s
- The biggest reason to sell your own home is the money. Agent’s fee’s are steep (6-7 percent off the top of the sale) wiping out thousands of dollars in profit from the bottom line. For the average homeowner, real estate commissions erase a huge chunk, if not all, of their entire equity in the home.
- By Owners control their sale. Many seller’s have bought and sold a lot of property in their lives. They know how to price their home, show their home and negotiate the sale better than a stranger could.
- Today, ‘For Sale by Owners’ have the marketing power that agent’s do. Gone are the days that “By Owner” marketing options were limited to throwing up a yard sign, hoping that a buyer stumbles upon it. Sellers now have access to all the tools that agents use to buy and sell property. Homeowners can purchase access to the MLS, Realtor.com, and other major real estate portals for a few hundred dollars, they can have an attorney draft the contract, leaving many to ask “Why pay 6 percent?”.
- FSBO’s have a Price Advantage. They don’t have a 6 percent tarriff to pay on their sale, which gives them an advantage when working with buyer’s or pricing their home below their “listed” competition.
- Many seller’s don’t trust real estate agents. They don’t want to place their most valuable asset in the hands of a commission sales person, who may or may not, be operating in their best interests.
The biggest problem for ‘by owner’ seller’s is that people love their homes and it is hard to be objective. Emotional attachments make pricing, negotiating and showing the home difficult for a lot of people.
Seller’s aren’t realistic about the need for a marketing program that will attract enough attention to draw buyers. Agent’s don’t spend money placing property on the MLS, Realtor.com and major websites because they enjoy it. They do it because those are the only methods that work to efficiently reach buyers and sell property. Throwing a sign in the yard or running a classified ad won’t work in this market. If you aren’t willing to use all the marketing tools that the agent’s use, your chances of succeeding are small.
- Showing the Property. If you live out of town, travel for your job or are unable to show the property with little notice, then selling by owner is not a viable option.
- The Work and the Time. When you list with an agent, all the work is done. The marketing, advertising, showing, negotiating, inspections and closing are handled by the agent. When you sell property yourself, you have to be prepared for the work and the time it takes.
For Sale at Auction Pro’s and Con’s
It’s Fast and Easy. Property auctions are quick and simple. The entire process only takes about 28-30 days from start to finish.
Avoid Random Buyer Tours of your Property. When you sell by auction, there are usually one or two days for all buyer’s to tour the property at a set time and date. Seller’s do not have to endure months of random strangers calling to walk thru their home with little to no notice. Other than the posted showing times, seller’s can live normally in their home without having buyers constantly disrupt their lives.
No Negotiations. Once the gavel falls, the price is set and the deal is over. The frustration of and time wasted on lowball offers, counter offers, repair negotiations are eliminated.
More Money. The true definition of market value is defined by what a buyer is willing to pay and a seller is willing to sell for. This is the beauty of the auction process. In good markets and good locations, buyer compete for their dream home in real time. Sometimes, the nature and urgency that is created in an auction environment will yield a higher sales price than a listing agent would recommended.
- The biggest con is that your home might not sell. Although we picture auctions as busy places, with huge crowds frantically bidding and waving their paddles in the air, that isn’t always the case. In slow markets with a lot of inventory, there are times when few people show up and the auction day is a bust.
- The Final Sales Price: If your opening bid is low and only a few buyer’s show up, you might sell the home for a lot less than you hoped or thought. If you are considering an auction, you may want to set a Reserve Price, which dictates that no sale will occur below X amount of dollars.
- The Buyer may not Meet the Terms. Although auction buyers should be pre-approved, and will forfeit their deposit if they don’t close the deal, deals do fall through, just like in conventional sales. For people who chose auctions for a quick sale, it could be a big issue, if the buyer is unable to meet their closing date.
- The Cost: The cost of an auction is often as expensive as listing with an agent. Sometimes, the seller will owe fee’s to the auctioneer, even if the sale fails to happen or the reserve is not met.
Thank you for visiting InfoTube.net and for looking with us behind doors one, two and three. If you need to sell, the method is your choice. Just consider the pro’s and con’s of all three, considering your lifestyle, budget, time and expertise before you make a final decision.
As the spring home selling season approaches, many homeowner’s rush to put their houses on the market. Interest rates are low, tax rebates and sales incentives abound, and home prices are more affordable than they have been in a decade.
But, before you throw the ‘for sale’ sign in the yard, please educate yourself about the common mistakes you should avoid, if you want to sell your home. Decades of real estate experience have proven again and again, that making these mistakes, even once, will stop any sale in its tracks.
- Pricing: Setting an unrealistic price is the biggest mistake home seller’s make. The home MUST be initially priced at or under its competition, or you are simply wasting time and money. Some seller’s toy with the notion of “low balling” their asking price, hoping for bidding wars and a quick sale. While this strategy sometimes works on lower priced property, it doesn’t work in higher price ranges. Buyer’s in a higher price range simply think that the seller is desperate, which always results in even lower offers, not bidding wars. We won’t address overpricing, because there is nothing to say. The truth is no one will overpay for your home, it won’t appraise anyway, so please keep it off the market, until you are ready to be realistic.
- Property Condition: Know as much as you can about the condition of your property, fix everything that will stop a sale, and disclose everything you know about the property condition to the buyer. If you don’t, when the problematic inspection report is revealed, the buyer will cancel the contract and walk. Afterward, the seller will find themselves in a much worse position because they lost momentum, valuable time on the market, and the cancelation signals that something was wrong with the house. The seller will also be required by law to disclose everything found on the prior inspection report, so there is nothing to gain and a lot to lose by hiding the facts.
- Working with Today’s Buyer’s: It is a mistake to not entertain any offer, no matter how low the inital offer is. Buyer’s in this market make low ball offer’s first, to test the desperation of the seller. You will never know what price a buyer may be willing to pay for your home, if you don’t negotiate with them.
- Potentially Unqualified Buyer’s: NEVER get into a contract with a buyer who isn’t financially qualified for a loan. A letter of prequalification is not enough to take a home off the market. First, know who the lender is and require full underwriting approval within days of the acceptance of the offer. Be sure to write this loan approval (not prequalification) provision into your contract. Maintain your Active Listing Status and DO NOT indicate that your home is Contract Pending until the buyer has verifiable loan approval.
Thank you for visiting InfoTube.net homes for sale or rent website. Feel free to post a Free Listing. Or, Upgrade to a Featured Home Ad which provides buyer’s all the information, video’s and pictures they are looking for. A Featured Home listing costs only $19.95 and the listing stays active until you sell or cancel.
Sales of existing homes rose to their highest levels since 2003. Watch the short video from CNBC for a synopsis of the latest housing numbers from across the nation.