real estate agent
How long will my home be on the market before a willing and able home buyer makes an offer?
According to the National Association of Realtors (NAR) a home in Massachusetts can expect to be on the market between 45-60 days.
But if you live in Middlesex County- in these selected communities- Chelmsford, Westford, Concord, Carlisle, Lowell, and Billerica, you can expect your home to be on the market 98.73 days according to the MLS.
The secret to selling a home fast and maximizing profit is outlined in the 4 P’s of Selling a Home.
If you want to put even more money in your pocket, use a full service real estate agent that breaks the commission mold and charges a FIXED FEE (no commission) and passes the savings to you.
This spring when you interview a prospective listing real estate agent make sure to ask, “how much will you charge me to sell my home?”
Don’t give your home equity away. Save 1,000’s of dollars and never compromise service.
Use a FIXED FEE, FULL SERVICE real estate agent.
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This week I read an article about the struggling relationship between the National Automobile Dealers Association (NADA) and Tesla. In some ways this conflict parallels the most recent friction in Denver, Colorado between REcolorado (Multiple Listing Service) and Trelora, a Denver residential real estate sales company. Both Tesla and Trelora are trying to disrupt the existing sales model in their respected industry and challenge the status quo. In Trelora’s case, the company on their website highlighted REcolorado’s proprietary information and noted the tremendous cost savings achieved using Trelora’s flat fee model versus a commission sales model.
Since 1850 the real estate market in the United States has recognized only one model for the conveyance of residential real estate- the traditional broker commission sales model. The real estate broker has controlled the monumental scepter- the home listing- which chiefly empowers the real estate broker to decide when, how and who can sell or buy real estate. Some industry pundits have noted the internet and listing portals like Zillow Group- (Zillow and Trulia), and others are breaking the real estate broker’s stronghold over the consumer.
Really? Or is it just smoke and mirrors?
The reality is these sites make home listings available to the public, but still everything remains controlled by the commissioned real estate broker. In fact even Zillow bowed down to the commissioned real estate broker. What started as a consumer real estate disruption is proving to be a great disappointment. Recently Zillow shifted gears and their revenue model is now dependent upon the advertising of commissioned real estate agents/brokers that are called premier agents.
Obviously public facing real estate listing platforms underwritten by commissioned brokers are not what they appear to be- a (real) real estate disruption.
A (real) real estate disruption is a market model permeation in the form of increased COMPETITION. Competition that demands real estate brokers to reduce the cost to transact real estate e.g. commission or fee based, without sacrificing the quality or quantity of service delivered to the consumer. Real estate consumers do not want less service they want to pay less for the service. They want full service real estate brokers to compete on service delivery costs. Consumers want to put more money in their pocket and not in the pocket of the real estate broker.
COMPETITION is the (real) real estate market disruption and the traditional commissioned real estate broker can’t compete. Just ask REcolorado.
The polar difference between Trelora and REcolorado, the Denver area Multiple Listing Service, is unmistakable. Trelora is a consumer centric model and REcolorado is a broker centric model. Trelora serves the real estate seller and buyer and REcolorado serves the real estate broker. The discord is that Trelora and REcolorado fully serve different audiences but with a same end result- To Sell a Home. Nothing more, nothing less.
REcolorado is a broker network- an exclusive membership club for real estate brokers to advertise and share commissions and Trelora is a Denver area flat fee real estate broker. The issue is Trelora advertised on their website the MLS commission fees and the significant savings a seller and buyer will recognize using Trelora and not a commissioned broker. So what’s the big deal? Most every home seller and home buyer knows that when using a commissioned real estate broker they will pay the going market rate of 5% or 6% (commission), as their cost to transact real estate.
So was REcolorado and its member brokers justified in issuing a “cease and desist”?
The simple answer is “YES”.
According to REcolorado, Trelora is “ ………. breaking IDX rules that prohibit manipulating listing content in a way that “produces a deceptive or misleading result” and by making parts of the MLS database available to people who are “not authorized” to see it by MLS rules and regulations.”
There is no dispute that is exactly what Trelora did. Trelora is guilty of showboating their competitive market model advantage much to the embarrassment of REcolorado and its members. The big deal is that Trelora is also an active member of REcolorado.
So does that make Trelora a whistleblower or a market agitator?
This spring when you interview a prospective real estate broker, make sure to ask how much and how they charge to list and sell your home.
Don’t give your home equity away. Put more money in your pocket. Save 1000’s of dollars and never compromise service.
Use a FIXED FEE, FULL SERVICE real estate broker.
For now it seems REcolorado, the Denver area Multiple Listing Service (MLS), is either very persuasive with legal jargon or Trelora is satisfied with 48 hours of free marketing and exposure. The “cease and desist” order issued by REcolorado has forced the flat fee real estate broker, Trelora, to apparently succumb and abide by REcolorado’s demands.
No matter Trelora’s apparent hollow posturing continues the effort to frustrate the real estate broker commission model. Technology and the internet has devolved power to the real estate seller and buyer. It has unlocked the guarded “listing information” that real estate brokers, for the last 100 years, have treasured and aggressively protected.
The takeaway from reviewing the hundreds of comments from real estate sellers and buyers is that the real estate consumer recognizes the operational and market monopoly real estate brokers have reaped for so long.
Real estate sellers and buyers demand the following:
- REDUCED TRANSACTION COST without sacrificing quality and quantity of service
- COMPETITON based on “cost to sell”. Real estate brokers should advertise their service cost. Either fixed fee or a commission is okay, but paying a 5% or 6% commission will not be tolerated in a competitive market.
- To work with a LICENSED REAL ESTATE PROFESSIONAL.
Regardless if Trelora does nothing more to push reColorado, the real estate seller and buyer have taken notice and spoken. The real estate service market must be more COMPETITIVE.
Power to the Real Estate Consumer.
Shortly the spring real estate market will be upon us.
Are you ready?
Are you confident you are working with a Broker that truly cares about your success and your clients?
InMan News suggests real estate agents need to ask themselves these simple questions:
- “Am I happy?”
- “Am I paying too much to my broker?”
- “Am I getting what I deserve?”
- “Am I controlling my professional destiny?”
- “Am I a part of something significant?”
- “Do I have a competitive edge?”
- “Will my business survive and prosper as technology advances?”
- “Do I need a change?”
Are you looking for a fresh opportunity?
Check out 2Way Realty.
Are YOU a designated ABR? (not necessary, but helpful)
Are YOU interested in servicing only real estate home buyers?
Are YOU looking for a profitable change; a new office to hang your license?
YOU are a qualified 2Way Realty buyer/selling agent, if you enjoy:
- Educating home buyers regarding current target market and financial conditions,
- Evaluating and presenting property information to a home buyer,
- Realizing satisfaction as the advisor/advocate for a home buyer,
- Working exclusively with home buyers.
2Way Realty OFFERS YOU:
- Starting Splits of 85% and Benchmark Splits up to 95%
EXAMPLE: Home Sales Price $400,000 @ 2.5% commission = $10,000.
At minimum YOU keep 85% or $8,500.
- No Transaction Fees
- No Franchise Fees
- and Market Leads
CALL NOW 978.250.3726.
Discover how 2Way Realty can help YOU help your clients and put more money in your pocket.
OP: (Original Price) the initial home price set by the homeowner and real estate agent and listed on the Multiple Listing Service (MLS).
LP: (List Price) the last publicly stated home price that attracted a Home Buyer to make an offer.
SP: (Sales Price) the accepted home price that SOLD the home.
If the seller and real estate agent price the home correctly from the beginning, to reflect current market conditions, the OP is the LP and also the SP. Far too often this is not the case.
The OP is always the LP until there is a noted price change. Most times a price change simply confirms the home was incorrectly priced.
The SP is truly the only price that matters to the home seller, home buyer and real estate professional.
Which brings me to my point- One common statistic used by many real estate agents to market their service to a home seller is the ratio of Sales Price to List Price (SP: LP). For example, an agent will claim to sell homes at 97% to List Price. Sure that may sound convincing, but is it the truth? If there is a home price change then the appropriate ratio is SP: OP?
Further if the home home sells at a 3% discount that’s more money from the Seller’s pocket. Ouch a 3% discount + a 5% commission= 8% taken away from the Seller.
Home owners want to sell their home at the Original Price without a noted price change. Anything less than the OP the home owner is selling at a discount. Which means the listing real estate agent did not represent the Home Seller very well.
Something to consider when selling your next home…..
In a recent interview with Jim Cramer on “Mad Money” Spencer Rascoff from Zillow slighted Realtor.com and coined it Rupert.com. Of course this is meant to be a dig in recognition of Rupert Murdoch’s purchase of Move Inc. operator of Realtor.com- the official listing website of the National Association of Realtors. Further, Spencer stressed that Realtor.com is no longer a realtor’s website.
Currently there are three prevailing websites that home buyers like to search. In order of captured eyeballs (unique visitors) they are Zillow, Trulia and Realtor.com. We know Zillow and Trulia recently announced they will merge, pending government approval, early next year and together are projected to control over 80% of internet real estate traffic.
So why does Mr. Rascoff care enough to snub Realtor.com?
Because…… Rupert Murdoch is founder, chairman and CEO of News Corporation a highly successful global media financial powerhouse. While Zillow, in comparison, is a media company that operates at a net loss and generates revenue by selling advertising to Murdoch’s newly acquired realtors on the internet.
An OPEN HOUSE is a method of showcasing a home for sale to the general public. It is a scheduled period of time in which a house or other dwelling is designated to be open for viewing for potential buyers. Customarily a public Open House (OH) is hosted on a designated day and time, for example on Sunday from 11am-2pm.
It is statistically confirmed a public OPEN HOUSE is more for the benefit of the real estate Agent than the Home Seller. This conclusion is reported on Realtor.com, the official website of the National Association of Realtors, and supported by a survey conducted by the Real Estate Center at Texas A&M University.
- 97% of the agents responding to the survey had held public open houses.
- 75% of agents believe Buyers are more likely to buy another home other than the one being showcased.
- 62% of the people attending a public Open House are not even in the market to Buy a home.
- 55% of Agents agreed Open Houses help to generate New Listing contracts.
Apparently all the effort and inconvenience to conduct a public OPEN HOUSE is for the self-serving needs and financial wants of the real estate agent at the considerable expense and liability of the Home Seller.
What exactly is the expense and liability to the home owner? To start, the real estate agent will inconveniently request you (the home owner) to vacate the property while he/she conducts the open house. Next, the real estate agent has no idea who is coming to the public Open House to survey your home. Maybe you trust the real estate agent but what about the strangers pilfering through your personal possessions and information? Do you really want a stranger to know you do not have a security system, or that your 5 year daughter sleeps in the bedroom on the left, on the first floor? What happens if you mistakenly leave the family calendar on the kitchen wall noting you will be out of town at the end of the month or you leave other personal information easily accessible? What about the prescription narcotics you store in the medicine cabinet? What about your personal possessions like your jewelry, silverware, or expensive electronics? If your Open House does not attract a willing and able buyer, what’s the point? Is the Open House really worth it?
In the Texas A&M study real estate agents confess it is unlikely they will sell your home using a public Open House. Therefore in consideration of the above statistics it is not logical, fair or even necessary for the real estate agent to ask you to leave your home so they can host a public Open House (party) at your expense? The reality is the real estate agent maybe using you, your family and your home to enrich themselves by generating more leads (Buyers and Sellers) for their pipeline.
According to a University of Central Florida (UCF) study (October, 2012)……. 74% of Home Sellers believe the traditional real estate agent did not do enough to justify the commission they charged. Many prudent home sellers advocate paying any commission is too much. These home sellers agree a low cost prearranged fixed fee system would better serve their financial needs.