Archive for the ‘For Homebuyers’ Category

From the Mailbag: MLS

September 7, 2012 4 comments

A reader, named “Ed”, wrote in with the “tidbit”.

“The per cent sold by realtors ( around 92 % ) might help convince homeowners to sell through a realty”

Ed, we appreciate the submission, in addition to the successful business that we have conducted together.

What is being referred to is the percentage of homes sold by agents. I can’t confirm if 92% is an accurate number or not.  Even if the actual percentage is lower, I still believe the vast majority of homes are sold by agents. What I do know is that listing a property in MLS is your best chance to getting your property sold.

MLS will

  1. Market your place most effectively.
  2. The best place to elicit a positive emotional response to your place.
  3. Will find you the fairest price for your property.

The 3 facts above are a result of the numbers game. Most people, when they start their home search will run into homes that are found on MLS, one way or another. More people seeing your property mean more chances for a sale.

Successful “Do-it-yourself” home buying

September 7, 2012 Leave a comment

“Do-it-yourself” buying comes in many shapes and forms, with inconsistent results. The goal of this post is to introduce to you the concept of “do-it-yourself” buyers agent, the agent that will bring you consistent results, meaning that a transaction is predictable to your expectations from start to finish.

On the buying side of real estate, “do-it-yourself”  buyers agents (DIYBA) are agents that comes into action when purchasing a property. When employed properly, you can receive a handsome reward at the end of the purchase process.

While the initial engagement of a DIYBA may (and should) come well before submitting an offer, these agents come into real action when you are wanting to submit an offer on a property. Great DIYBA  are out there willing to provide you with their expertise. It’s up to you to find them!

Do-it-yourself buyers agents are especially helpful when

  1. Creating and strategizing an offer
  2. Know how to walk away from a deal.
  3. Navigating and negotiating a deal so that your comfort is in the front seat.

This does not mean that having them out for a home searching session isn’t out of the question. Perhaps having them out with you to consult with is well worth the value.

At first being approached with this idea may seem strange and create some hesitation. Receive this idea with the intent of getting help and get rewarded for the effort put in on your own. With this mindset, you’ll be able to find an outstanding DIYBA.

What kind of programs are available for “Do-It-Yourself” real estate?

August 8, 2012 Leave a comment

Briefly introduced in my last post, there are programs for both sellers and buyers that will allow them to sell their property to a wider audience. In this post, we will look further into detail what each program provides.

The programs are follows

  1. Listing on MLS
  2. Rebate back on purchase
  3. Session based consulting

Listing on MLS

Listing on MLS is a program geared for sellers. Typically the audience is gear for For Sale by Owner (FSBO). In this program,  sellers will place their property on the appropriate MLS network so that they reach a wider audience.  The seller assumes all the legwork and scheduling of showings of their property.

Without dispute, Multiple Listing Service (MLS), is the best place to market your property. Feel free to advertise on other sites, newspaper, etc, as they are all distant seconds and thirds.

Prices range between free to a few hundred dollars. While free appears to be nice, expect overall service to be lacking and to be sold something else in addition down the line. Paying a few hundred dollars to get responsive service to make listing adjustments over the course of selling your home is well worth the value. Communications is best done over email and is favorable to the computer savvy.

Rebate back on purchase

There are lots of names for this kind of program, but the word “rebate” is a term used often to describe it and is typically for buyers. This program allows a buyer to enter an agreement with an agent where a rebate is returned is provided if a purchase of a home is completed.

This rebate is fully earned if the buyer spends the time to view properties without the assistance of an agent, predominantly through open houses. Agreements and adjustments can be made if assistance is needed, but the bulk of the work of an agent comes in when an offer and a sale needs to be managed.

Depending on the sale price and how much the buyer has participated in the search process, the rebate that comes back can be generous, but is dependent on what commission percentage is offered to the buyer’s agent.

Session based consulting

This is a harder service to come by and is an indicator of experience. If this kind of offering is provided by an agent, it’s likely the agent has experienced much. This kind of service is initiated if a question or situation can not be answered in a reasonable amount of time and some kind of appointment is needed. Expect to pay for the services up front.

An experienced and good agent will charge $150-175/hr for services rendered. Time and money spent on sessions usually turn out well worth the value, especially if it prevents large losses of money and time.

What is “Do-it-yourself” real estate?

August 8, 2012 1 comment

During and after the real estate craze in the mid 2000s, value of the traditional real estate sales model has been questioned. This questioning introduced a new type of real estate sales model where homeowners or homebuyers can get more closely involved in the transaction process and in turn, be rewarded mostly by earning or saving significant funds.

If you are reading this, quite possibly you are interested in this way.

“Do-It-Yourself” (DIY) sales has been around for a while but hasn’t been well publicized, reasons that go beyond the purpose of this blog. This blog contributes to leading the reversal of this trend.

DIY real estate services provide programs to both buyers and sellers of real estate in the form of these concepts

  1. Listing on MLS for a Flat Fee (For sellers)
  2. Rebate back when purchasing a home. (For buyers)
  3. Session based consulting work (For sellers and buyers)

These programs provide monetary incentive for sellers or buyers if there a commitment to spend the time and leg work to perform property showings and viewings. Only when a sales transaction needs to be initiated and guided, will an agent be of assistance.