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Isn't listing in the MLS database considered as internet exposure?
Yes and you will feed into Realtor.com for a basic listing there. You can also ask if their MLS has listinghub or some other service that feeds into Zillow, Trulia, etc. I sign up via my MLS for free for that service. They just pay it out of my dues. Then your listings just get syndicated at no additional cost to you. You don't need to be everywhere on the internet. You just need to be in the right places.
I also disagree that these folks have no knowledge to share. I know a company in WA where one of the owners worked for a large franchise and was the trainer for agents. Let's not slam all limited rep companies. Some are great agents, and some stink. Just like regular real estate agents.
I also disagree that if you don't offer a "standard commission" that buyer's agent's won't show. While I agree that you want to be competitive, some agents won't show and some will because they have buyer agency agreements. So it's inappropriate to say that no agents will show it. Some will, some won't.
Any reasons why selling by owner through flat fee listing do not get sold and closed? The only reason I can think of is the lack of negotiation skills by the owner and hence eventually self-sabotage.
There are several reasons:
Most flat fee brokers never see the properties they list and list in areas where they do not know the local comps. They have no incentive to get a seller sold, given they are paid up front.
The seller does not know their local market or how markets work and are more inclined to think that what they need or want out of the sale matters to buyers. They often price themselves to sell the competition.
For reasons that defy logic, so many flat fee sellers do not answer their phone, return phone calls and /or find showings inconvenient.
Flat fee listings are rarely on broker tour if such tours are common in a given area.
Many flat fee sellers seem to believe they can hard sell their homes during a showing. They come on way too strong, make assumptions, hover and make pests of themselves.
Most sellers do not know how to qualify a buyer and an offer and negotiate on their own behalf. They are more apt to reject an offer than work it.
If a flat fee seller manages to get under contract, the fun has just begun. Home inspections, appraisals, mortgage contingencies, title searches and so on create additional hurdles. Holding a deal together is often as challenging as getting a contract together. It's a rare contract that does not encounter post contract issues.
I bought 30 and sold 29 homes before I became licensed. I could not imagine having done so on my own. I have well honed interviewing skills whichallowed me to hire the best people for the job. I know the difference. Their collective counsel saved me substantially more, in all kinds of markets, than the fees they were paid from the transaction.
If I knew of a better way to get sold, I would be amongst the first to embrace flat fee brokerage or another model that was nearly as effective as full service.
I also disagree that these folks have no knowledge to share. I know a company in WA where one of the owners worked for a large franchise and was the trainer for agents. Let's not slam all limited rep companies. Some are great agents, and some stink. Just like regular real estate agents.
There's a terrific flat fee broker that works an enormous area, in Illinois. He is competent and knows his stuff. What he does not know are the local markets, the different neighborhoods, their nuances and how one listing compares and contrasts to another, other than what is shown on the MLS.
He is capable of broad consumer education and does a terrific job of internet marketing. In my state all offers must be negotiated via brokerage, so he is the point person. He relays information but cannot negotiate because he does not have the pulse of the situation.
His listing was the one and only sold and closed flat fee listing in my area, in 2009.
With the economy situation, I have decided to sell my rental property on my own (in Washington state, Island county). I've done some reading and feel comfortable doing it myself. However, I need some directions regarding listing my house in the MLS database. I understand there are websites that offer to list the house in the MLS database for a flat fee. Any catch I need to be aware of? Some websites offer different packages, e.g., MLS listing plus consultation, forms, etc. I'm inclined to go with the full meal deal since this is the first time I'm selling on my own. Also, has anybody have any opinions regarding all the various websites offering the MLS listing service? There are so many sites to choose from and I just want to make sure my money is well spent.
Any input is appreciated.
maiden.jade, you have nothing to lose and everything to gain, well, maybe $300 for the flat fee listing and some time. If you arm yourself with information, price your home right, the home is in good condition and you have time to show your home, you are ahead of the game, thus worth a try.
There's a terrific flat fee broker that works an enormous area, in Illinois. He is competent and knows his stuff. What he does not know are the local markets, the different neighborhoods, their nuances and how one listing compares and contrasts to another, other than what is shown on the MLS.
He is capable of broad consumer education and does a terrific job of internet marketing. In my state all offers must be negotiated via brokerage, so he is the point person. He relays information but cannot negotiate because he does not have the pulse of the situation.
His listing was the one and only sold and closed flat fee listing in my area, in 2009.
That's true. Sellers need to do some serious thinking about whether or not they really know about their market.What I have found is that methodical people tend to do fine at pricing their home, but often get stuck in negotiations.
Many realtors will advise against it because it takes away their competitive advantage. Good Luck.
I am not one of them. I get a kick when someone beats the odds and is successful, kind of like a lottery winner.
It's a rare transaction anywhere, that does not have at least one agent involved. I guess that's like a mega ball thing.
Most flat fee sellers eventually either blame buyer agents for not showing their overpriced home or realize it's not the slam dunk they thought it would be.
Isn't listing in the MLS database considered as internet exposure?
First; I never said I had a bad experience with a flat fee service, I actaully sold a home in CA back in 2004 through one of these companies in about two days when the market was red hot. (like MAM I had already bought and sold numerous investment properties through agents so I was comfortable with the process) Second; I also never said that you were or weren't going to offer a commission to buyers agents, rather I was simply suggesting that you do if you're looking for a positive result.
About the exposure; sure listing on the local MLS will give you basic exposure grouped with the thousands of other listings for sale, kind of like the exposure a guy in row 202, seat A at a rock concert has. The MLS is really only used by agents as John Q public really doesn't know where to look or how to find and obtain that information.
Most folks looking for homes will simply Google "Any city Real Estate" and start scrolling through the different sites until they find something that has the info they are looking for that is also easy for them to navigate. Will your property be featured there? Probably not.
Like others have said, the marketing and showing of the property is really only the tip of the ice berg. What happens once you have someone who is ready to purchase; are they actually able to purchase or are they simply wasting your time?
The mortgage market is about as volatile as the stock market these days with requirements and interest rates changing daily due to the governments involvement. Then there's issues with negotiating the contract as there's certainly a lot more to consider than just price. Also consider the title companies involvement, inspections, repair amendments, transfer fees, appraisals, disclosures, surveys, buyers remorse, other financing issues, the list goes on...
MAM sounds very savvy and makes a lot of good points in the above posts; too bad she doesn't live/work in your area, I would recommend her to you.
At the end of the day what are you really saving by going through one of these "services"? You are still offering 3% to a buyers agent and then paying another $500 to the flat fee guy. I believe these days you could probably find a good agent to list your home for 5%; taking 2 for themselves and giving 3 to a buyer agent; if the listing agent got both sides they would probably even discount it further.
I truly believe the biggest problem with people going it alone when selling their property (which is really what you are doing) is that they "don't know what they don't know" until its too late... All of this to save less than 2% just doesn't make sense to me, especially when you consider that history and data tells you that the results will probably be less than favorable.
Do buyers feel offended if I ask for pre-approval loan letter? I wouldn't if I were a buyer. Will asking for pre-approval letters reduce potential buyers especially with the current economy situation?
Who cares? I won't work with buyers that won't get pre-approval letter, why should you?
If you're contemplating paying the 800 why not go ahead and interview several different realtors with several different models. It's free and informative to meet multiple Realtors and then go with who you think is the best fit.
maiden.jade, you have nothing to lose and everything to gain, well, maybe $300 for the flat fee listing and some time. If you arm yourself with information, price your home right, the home is in good condition and you have time to show your home, you are ahead of the game, thus worth a try.
Many realtors will advise against it because it takes away their competitive advantage. Good Luck.
Thanks for the link. I did a search on this forum but came out with nothing. Your concern was the same as mine and the discussion at your link pretty much is the same in this thread.
I think the bottom line is, be prepared for the unexpected.
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