Believing These 5 Myths About REALTORS Keeps You From Growing

Ten years ago, a search for real estate would have were only available in the office of an area real estate agent or by simply driving around town. At the agent’s office, you would spend an afternoon flipping through pages of active property listings from the neighborhood MLS (MLS). After choosing properties of interest, you would spend weeks touring each property and soon you found the right one. Finding market data to help you assess the price tag would take more time and a lot more driving, and you still might not be able to find all of the information you needed to get really comfortable with a fair market value.

Today, most property searches start on the Internet. An instant keyword explore Google by location will likely get you a large number of results. If you spot a house of interest on a real estate web site, it is possible to typically view photos online and maybe even have a virtual tour. After that you can check other Web sites, such as the local county assessor, to obtain a concept of the property’s value, see what the current owner paid for the house, check the real estate taxes, get census data, school information, and even check out what shops are within walking distance-all without leaving your home!

While the resources on the net are convenient and helpful, using them properly could be a challenge because of the volume of information and the difficulty in verifying its accuracy. At the time of writing, a search of “Denver real estate” returned 2,670,000 Web sites. Even a neighborhood specific seek out real estate can easily return thousands of Sites. With so many resources online so how exactly does an investor effectively utilize them without getting bogged down or winding up with incomplete or bad information? Contrary to popular belief, understanding how the business of property works offline makes it simpler to understand online real estate information and strategies.

The Business of PROPERTY

Real estate is typically bought and sold either through a licensed agent or directly by the dog owner. The vast majority is purchased and sold through real estate agents. (We use “agent” and “broker” to make reference to the same professional.) This is due to their real estate knowledge and experience and, at least historically, their exclusive access to a database of active properties on the market. Usage of this database of property listings provided the most efficient way to search for properties.

The MLS (and CIE)

The database of residential, land, and smaller income producing properties (including some commercial properties) is commonly referred to as a multiple listing service (MLS). Usually, only properties listed by member real estate agents can be added to an MLS. The primary reason for an MLS would be to enable the member real estate agents to create offers of compensation to other member agents if they find a buyer for a house.

This purposes didn’t include enabling the direct publishing of the MLS information to the general public; times change. Today, most MLS information is directly accessible to the general public over the Internet in many different forms.

Commercial property listings are also displayed online but aggregated commercial property information is more elusive. Larger MLSs often operate a commercial information exchange (CIE). A CIE is comparable to an MLS however the agents adding the listings to the database are not required to offer any specific type of compensation to another members. Compensation is negotiated beyond your CIE.

Typically, for-sale-by-owner properties can’t be directly put into an MLS and CIE, which are usually maintained by REALTOR associations. Having less a managed centralized database could make these properties more difficult to find. Traditionally, these properties are located by driving around or searching for ads in the neighborhood newspaper’s real estate listings. A far more efficient solution to locate for-sale-by-owner properties would be to search for a for-sale-by-owner Web site in the geographic area.

What is a REALTOR? Sometimes the terms agent and REALTOR are employed interchangeably; however, they are not similar. A REALTOR is a licensed real estate agent who is also an associate of the NATIONAL ASSOCIATION OF REALTORS. REALTORS are required to comply with a strict code of ethics and conduct.

MLS and CIE property listing information was historically only obtainable in hard copy, so when we mentioned, only directly available to realtors members of an MLS or CIE. About a decade ago, this valuable property information began to trickle out to the web. This trickle is currently a flood!

One reason is that a lot of the 1 million roughly REALTORS have Web sites, & most of those Sites have varying amounts of the neighborhood MLS or CIE property information displayed in it. Another reason is that there are lots of non-real estate agent Internet sites that also offer real estate information, including, for-sale-by-owner sites, foreclosure sites, regional and international listing sites, County assessor sites, and valuation and market websites. The flood of property information to the Internet definitely makes the information more accessible but additionally more confusing and subject to misunderstanding and misuse.

Real Estate Agents

Despite the flood of real estate information on the web, most properties are still sold directly through realtors listing properties in the local MLS or CIE. However, those property listings usually do not stay local anymore. By its nature, the Internet is a global marketplace and local MLS and CIE listings are normally disseminated for display on a variety of Web sites. For example, many go to the NATIONAL ASSOCIATION OF REALTORS Internet site, http://www.realtor.com, and to the local property agent’s Web site. In addition, the listing may be displayed on the internet site of a local newspaper. In essence, the Internet is just another form of marketing offered by today’s real estate agent, but it has a much broader reach compared to the old print advertising.

In addition to Internet marketing, listing agents may also help the seller set up a price, hold open houses, keep the seller informed of interested buyers and will be offering, negotiate the contract and help with closing. When an agent provides most of these services it is referred to as being a full service listing arrangement. While full service listing arrangements will be the most common kind of listing arrangement, they’re not the only real option anymore.

Changes in the technology behind the true estate business have caused many agents to change the way they do business. In large part, this is due to the instant access most consumers will have to property listings and other real estate information. Furthermore, the Internet and other technologies have automated a lot of the marketing and initial searching process for real estate. For example, consumers can view properties online and make inquires via email. Brokers can use automated programs to send listings to consumers that match their property criteria. So, some agents now limit the services they provide and change their fees accordingly. An agent may offer to advertise the property in the MLS but only provide limited additional services. Later on, some real estate agents may offer services in more of an ala carte fashion.

Because of the volume of real estate information on the web, when people hire a real estate agent today they should look at the particular services offered by the agent and the depth of their experience and knowledge in the relevant property sector. It is no longer just about usage of property listing information. Buyers and sellers historically found agents by referrals from family and friends. The Internet now provides ways to directly find qualified agents or to research the biography of a realtor referred to you offline. One such site, AgentWorld.com, is quickly becoming the LinkedIn or Facebook for realtors. On this site an agent can personalize their profile, start a blog, post photos and videos and even create a connect to their web site for free. chester houses for sale Once unique content is added to their profile page the search engines notice!

Some have argued that the web makes REALTORS and the MLS less relevant. We believe this is false in the long term. It could change the role of the agent but will make knowledgeable, qualified, and professional REALTORS more relevant than ever. In fact, the quantity of realtors has risen significantly recently. No wonder, the web has made local property a global business. Besides, Internet or not, the simple fact remains that the purchase of real property is the largest single purchase most people make within their life (or, for many investors, the biggest multiple purchases over a lifetime) and they want expert help. As for the MLS, it remains the most reliable source of real estate listing and sold information available and continues to enable efficient marketing of properties. So, what’s the function of all the online real estate information?

Tags: No tags

Add a Comment

Your email address will not be published. Required fields are marked *