The Federal Trade Commission once again has shown how important a low cost MLS listing is for consumers with their recent decision on November 2nd.
Internet listings have become "vital" to real-estate sales, the FTC said maintaining their long-term position that consumers must have access to the MLS to be able to sell efficiently. Over the last 18 months the FTC has supported the rights of home sellers to be able to list their homes on the MLS using discount listing services such as Owners.com and not pay full-service brokerage commissions.
In a case regarding the Detroit area MLS Realcomp II, the largest real-estate listing group in Michigan, the FTC's opinion stated that the group had violated federal law by restricting some discount real-estate listings from its own and other publicly available websites.
"Given the market structure and competitive dynamics of the residential real estate industry, we find that Realcomp's policies harmed competition and created a likelihood that valuable rivalry among real estate service providers would be suppressed", Commissioner William Kovacic wrote in the opinion.
Because 90% of homes for sale are listed on the MLS we firmly believe at Owners.com that it is critical for consumers to have access to listings without having to pay a full 3% selling agent's commission. The fact that the US Federal Government agrees with us feels pretty good about helping our customers and home sellers nationwide!
More about the FTC and the MLS
Full Opinion FTC vs Realcomp II
FTC says Consumers save thousands using a Flat Fee MLS Listing
More about the MLS on Owners.com
Tuesday, November 3, 2009
Wednesday, October 21, 2009
Owners.com is up for an award!
Our new 30-second spot shows homeowners how to erase broker's fees from the home selling process.
Is it any coincidence that we are nominated for an award!?
Click here to check out Owners.com 30 second spot.
The votes are in and the Owners.com TV commercial won the Google contest. We're guessing even the guys at Google and YouTube want to erase broker commissions!
Click here to check out Owners.com 30 second spot.
The votes are in and the Owners.com TV commercial won the Google contest. We're guessing even the guys at Google and YouTube want to erase broker commissions!
Wednesday, October 14, 2009
Is Realtor.com the same as the MLS?
What is the difference between the MLS and Realtor.com? This is one of our most frequently asked questions.
The MLS and Realtor.com are related services but each one serves a different market and both can be used by FSBO sellers to advertise their home. It is important to remember that all homes listed in their local MLS across the country are also listed on Realtor.com. If you only want to list on Realtor.com and not your local MLS, that can be done, but we're often asked what the difference is.
Realtor.com primarily reaches individuals searching for home, as the largest real estate website it reaches a very broad group of buyers and people just considering to move. Most brokers don't search Realtor.com, instead they rely on their local MLS network to find homes for their clients.
What does this mean for you? First as a seller you must decide what type of buyers you are willing to consider offers from:
1. Independent buyers with no agents (no commissions owed)
2. Independent buyers (no commissions) and buyers with agents ( 50% of the normal commission owed)
It's really that simple. If you want to primarily reach independent buyers then you should only list on Realtor.com. If you want to consider all possible buyers, then list on the MLS which includes a listing on Realtor.com.
Ok so at this point most people tell us - Of course I don't want to pay any commission period, even 3% or half the normal rate. But the problem is that most buyers are working with agents, up to 80%, so you have to make a choice - do you want to exclude this pool of possible buyers?
The goal for most sellers is to get the best net offer, if that's one with a commission or one without it shouldn't matter, only how much money ultimately ends up in your pocket. If you're willing to offer up to 3% commission to attract buyers with brokers and expand your possible number of offers, then the MLS is the right choice.
To learn more about the MLS, check these resources from around the web:
US Justice Department: Consumers Can Save Thousands of Dollars in Commissions
Wikipedia article about the MLS
The MLS and Realtor.com are related services but each one serves a different market and both can be used by FSBO sellers to advertise their home. It is important to remember that all homes listed in their local MLS across the country are also listed on Realtor.com. If you only want to list on Realtor.com and not your local MLS, that can be done, but we're often asked what the difference is.
Realtor.com primarily reaches individuals searching for home, as the largest real estate website it reaches a very broad group of buyers and people just considering to move. Most brokers don't search Realtor.com, instead they rely on their local MLS network to find homes for their clients.
What does this mean for you? First as a seller you must decide what type of buyers you are willing to consider offers from:
1. Independent buyers with no agents (no commissions owed)
2. Independent buyers (no commissions) and buyers with agents ( 50% of the normal commission owed)
It's really that simple. If you want to primarily reach independent buyers then you should only list on Realtor.com. If you want to consider all possible buyers, then list on the MLS which includes a listing on Realtor.com.
Ok so at this point most people tell us - Of course I don't want to pay any commission period, even 3% or half the normal rate. But the problem is that most buyers are working with agents, up to 80%, so you have to make a choice - do you want to exclude this pool of possible buyers?
The goal for most sellers is to get the best net offer, if that's one with a commission or one without it shouldn't matter, only how much money ultimately ends up in your pocket. If you're willing to offer up to 3% commission to attract buyers with brokers and expand your possible number of offers, then the MLS is the right choice.
To learn more about the MLS, check these resources from around the web:
US Justice Department: Consumers Can Save Thousands of Dollars in Commissions
Wikipedia article about the MLS
Is the MLS the same as Realtor.com?
What is the difference between the MLS and Realtor.com? This is one of our most frequently asked questions.
The MLS and Realtor.com are related services but each one serves a different market and both can be used by FSBO sellers to market their homes. It is important to remember that all homes listed on the local MLS boards across the country are also listed on Realtor.com. If you only want to list on Realtor.com and not your local MLS we can do that, but we often are asked what is the difference?
Realtor.com primarily reaches individuals searching for home, as the largest real estate website it reaches a very broad group of buyers, searchers and people just considering moving. Most brokers do not search Realtor.com, instead they rely on their local MLS services to find homes for their clients.
What does this mean for you? First as a seller you must decide what type or buyers they are willing to consider offers from:
Ok so at this point most people tell us - Of course I don't want to pay any commission period, even 3% or half the normal rate. But the problem is most buyers are working with agents, up to 80% so you have to make a choice - do you want to exclude this pool of possible buyers?
The goal for most sellers is to get the best net offer, if that is one with a commission or one without it should not matter, only how much money ultimately ends up in your pocket. If you're will to offer up to 3% commission to attract buyers with brokers and expand you possible number of offers then the MLS is the path.
To learn more about the MLS check these resources from around the web:
US Justice Department: Consumers Can Save Thousands of Dollars in Commissions
Wikipedia article about the MLS
Realtor.com primarily reaches individuals searching for home, as the largest real estate website it reaches a very broad group of buyers, searchers and people just considering moving. Most brokers do not search Realtor.com, instead they rely on their local MLS services to find homes for their clients.
What does this mean for you? First as a seller you must decide what type or buyers they are willing to consider offers from:
- Independent buyers with no agents (no commissions owed)
- Independent buyers (no commissions) and buyers with agents(50% of the normal commission owed)
Ok so at this point most people tell us - Of course I don't want to pay any commission period, even 3% or half the normal rate. But the problem is most buyers are working with agents, up to 80% so you have to make a choice - do you want to exclude this pool of possible buyers?
The goal for most sellers is to get the best net offer, if that is one with a commission or one without it should not matter, only how much money ultimately ends up in your pocket. If you're will to offer up to 3% commission to attract buyers with brokers and expand you possible number of offers then the MLS is the path.
To learn more about the MLS check these resources from around the web:
US Justice Department: Consumers Can Save Thousands of Dollars in Commissions
Wikipedia article about the MLS
Tuesday, October 6, 2009
All About Closing (Video)
Closing and settlement can be confusing. But this fun 3 minute video does a great job of de-mystifying the basic process.
For many sellers escrow, real estate closing, settlement and title searches are the least understood part of selling a home. Whether you plan to manage them yourself, hire a real estate attorney or rely on a broker - it is important to understand what is happening during escrow and what your responsibilities are. After all no matter how you manage closing it is your transaction and your money!
Thanks to Federal Title of Washington DC for this simple fun video. For more information about the closing process check out these articles in the Owners.com article library:
What Happens at Closing
What is Escrow/Closing/Settlement?
Choosing a Title Company, Escrow Officer or Real Estate Attorney
Who Pays Transaction Costs?
For many sellers escrow, real estate closing, settlement and title searches are the least understood part of selling a home. Whether you plan to manage them yourself, hire a real estate attorney or rely on a broker - it is important to understand what is happening during escrow and what your responsibilities are. After all no matter how you manage closing it is your transaction and your money!
Thanks to Federal Title of Washington DC for this simple fun video. For more information about the closing process check out these articles in the Owners.com article library:
What Happens at Closing
What is Escrow/Closing/Settlement?
Choosing a Title Company, Escrow Officer or Real Estate Attorney
Who Pays Transaction Costs?
Thursday, October 1, 2009
Are Home Sales Up in Your Market?
Home sales and prices increased in the latest reports although markets still vary widely. So how do you decide if now is the time to sell your home?
First the data:
Pending home sales rose 6.4% in August, it's highest level since March 2008 based on date from NAR (read the full article here..) and the market has been rising for seven month in a row (according to MarketWatch)
One factor in this rise seems to be the $8,000 tax credit for new buyers, due to expire in November 30th. This approaching deadline could be driving buyers to act. There has been a heavy push by the real estate lobby to extend the tax credit, but with no bill yet settled buyers may have been rushing to get the credit while it lasts.
The other fundamental factor is low cost, due to lower overall home prices and historically low mortgage rates. While rates are fairly consistent nationwide, prices have continued to vary based on local market conditions, housing supply and economic activity. To check on your local market trends download the full report here...
Opinions about what will happen to prices are all over the board, but opinions don't sell a home. Knowing your market does. Here are 5 concrete steps you can take to use data and research to help you sell your home.
First the data:
Pending home sales rose 6.4% in August, it's highest level since March 2008 based on date from NAR (read the full article here..) and the market has been rising for seven month in a row (according to MarketWatch)
One factor in this rise seems to be the $8,000 tax credit for new buyers, due to expire in November 30th. This approaching deadline could be driving buyers to act. There has been a heavy push by the real estate lobby to extend the tax credit, but with no bill yet settled buyers may have been rushing to get the credit while it lasts.
The other fundamental factor is low cost, due to lower overall home prices and historically low mortgage rates. While rates are fairly consistent nationwide, prices have continued to vary based on local market conditions, housing supply and economic activity. To check on your local market trends download the full report here...
Opinions about what will happen to prices are all over the board, but opinions don't sell a home. Knowing your market does. Here are 5 concrete steps you can take to use data and research to help you sell your home.
- Read up about your local market. Case-Shiller and Zillow both put out reports about housing market trends. You can assume buyers will have been looking at the data, know what they say and have a response as to why your home fits with these trends or stands out. But don't be caught by surprise.
- Determine if your neighborhood is in line with metro and state trends. Often news stories and data cover wide areas, but real estate is local, know how your neighborhood varies and be able to explain it's features.
- Take the time to ask buyer about their future plans. If you find someone happy to live in your neighborhood for 10 years because of good schools that will put short term price changes in a very different context
- Estimate what rental income for your house would be and how that compares to the cost of buying it as an investment. Not every area is open to investment income, but for some buyers even the thought that they are not trapped by a mortgage and can recoup a substantial portion by renting the property will lower their fears and help your home sale.
- Remember a house is a home to be lived in. Despite everything, people still want to live in the home of their dreams and most will find a way to pay for that. Your number one job as a home seller is to help buyers see what their lives would feel like in your house. This is easier than it sounds, simply ask them what they want and hope for then take the time to step back and listen. Don't tell them about your kids growing up, or your additions or remodeling, instead listen to their dreams and ideas for what your house could be. Dreams always trump data.
Thursday, September 24, 2009
How to Manage a Short Sale
Short sales have become a sign of the times. In some markets, like Sacramento, 50% or more of sales are short sales.
By definition, selling short is when a home is sold for less than is owed, requiring the bank or mortgage holder to agree to take less than the value their debt. That banks don't enjoy doing this is quite an understatement.
Like everything in Real Estate it pays to be informed, so when we saw that our old friend Robert Irwin had written a new book on short selling a home we knew it was a "must read' for any short seller, coming as it does from the leading expert on selling by owner.
How to Use a Short Sale to Stop Home Foreclosure and Protect Your Finances
- is a comprehensive guide to short selling for the home owners.
“I wrote this book to show sellers, buyers, and their agents how to successfully get lenders to deal when a property is ‘upside-down'” says Bob.
If you’re “underwater” you’ll find this book is a life preserver. It shows you step-by-step how to get out from under by selling your home and having your lender accept less than you owe.
It gives multiple examples of what goes into a “short sale package” including “seller’s hardship letters,” “lender’s net sheet,” and “a proposal letter.” It explains how to find an appropriate buyer and work with an agent (if you so desire), and details what the tax consequences might be. It gives lenders’ phone numbers and has many easy-to-use worksheets. It even shows you how to do a successful loan modification. It’s offers everything you need to pull off your own short sale.
If you’re an investor/buyer, the book explains the seller’s perspective, shows you how to work with sellers and lenders, and explains what you’ll need to accomplish a short sale. It shows how to get through to a lender and what to say to avoid delays.
You shouldn’t consider buying or selling a short sale property until you’ve checked out the rules, pitfalls, and shortcuts in this book.
By definition, selling short is when a home is sold for less than is owed, requiring the bank or mortgage holder to agree to take less than the value their debt. That banks don't enjoy doing this is quite an understatement.
Like everything in Real Estate it pays to be informed, so when we saw that our old friend Robert Irwin had written a new book on short selling a home we knew it was a "must read' for any short seller, coming as it does from the leading expert on selling by owner.
How to Use a Short Sale to Stop Home Foreclosure and Protect Your Finances
- is a comprehensive guide to short selling for the home owners.
“I wrote this book to show sellers, buyers, and their agents how to successfully get lenders to deal when a property is ‘upside-down'” says Bob.
If you’re “underwater” you’ll find this book is a life preserver. It shows you step-by-step how to get out from under by selling your home and having your lender accept less than you owe.
It gives multiple examples of what goes into a “short sale package” including “seller’s hardship letters,” “lender’s net sheet,” and “a proposal letter.” It explains how to find an appropriate buyer and work with an agent (if you so desire), and details what the tax consequences might be. It gives lenders’ phone numbers and has many easy-to-use worksheets. It even shows you how to do a successful loan modification. It’s offers everything you need to pull off your own short sale.
If you’re an investor/buyer, the book explains the seller’s perspective, shows you how to work with sellers and lenders, and explains what you’ll need to accomplish a short sale. It shows how to get through to a lender and what to say to avoid delays.
You shouldn’t consider buying or selling a short sale property until you’ve checked out the rules, pitfalls, and shortcuts in this book.
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