The answer to the question: “Is Flat Fee MLS in Georgia a threat” depends on who you ask. When we first started DitY Realty with the Flat Fee MLS concept we did it to serve a very specific type of clientele. Our decision to start DitY Realty was initially driven by the real estate down-turn and as a means to help Georgia Home Sellers that had negative equity.
It was not our intention to create animosity in the Georgia real estate community, but there are specific competitors that are truly threatened.
Real estate agents working the traditional real estate model in Georgia have not reacted harshly and we are not working to take their business. The traditional real estate agent should not feel threatened because their business is (or should be) driven by the relationship they have with their home seller.
In contrast, the real estate brokerages that target home sellers through the “we can do it cheaper” strategy are, and should feel threatened. These real estate business models claim to take a chunk out of real estate commissions, promise to assist or help sellers yet still charge thousands of dollars to sell the home. Their clientele are extremely price conscious and are attracted to the lowest cost solution. When they research real estate companies and find they will pay $3000 or more (+3% for the buyer’s agent) for someone to help them sell and then compare it to listing the home for sale with a Flat Fee MLS real estate brokerage at $495 (and can avoid the 3% for buyer’s agents altogether) the cheaper solution is obvious and of course it is the one a price conscious home seller will pursue.
So that’s the long answer to the question. The short answer is that traditional real estate agents do not have to worry provided they continue to have strong, relationship-based clients. BUT, the “we can do it cheaper at $3000” real estate agents should be concerned because a “much, much less expensive” opportunity has presented itself through a Flat Fee MLS avenue.
Original Post on Point2.
Monday, December 29, 2008
Wednesday, December 17, 2008
How Do Flat Fee MLS Listings Work?
Flat rate real estate is in its infancy. The Internet has had the biggest impact and the ability for a real estate brokerage to use the web as a means to market Georgia homes for sale is one of the major contributors to the birth of flat rate real estate.
This is how it typically works: A home owner lists the home for sale with a flat rate mls real estate brokerage such as DitY Realty (DitY stands for do it yourself realty / real estate). The flat rate covers the cost of putting the home on various local, national, and proprietary websites. It typically covers the cost of putting it on the mls, although many of DitY Realty's competitors charge an extra fee (i.e. an additional $195) for posting the home to the local mls. Once the home has been posted to the websites and/or the mls the flat rate company simply lets the marketing do its job.
What's not included in the flat rate is the cost to bring a buyer. The fee to bring a buyer to the table is not set by law; it is set by local markets. Often the buyer's agent earns 3% in commission for bringing a buyer. A seller's agent (traditional or flat rate) must post on the mls the commission amount the seller is willing to pay. Yes it is possible to post zero % but then a seller should expect to get zero activity from real estate agents with qualified buyers. Chasing buyer’s agents away defeats the purpose of using the Georgia mls entirely.
Our suggestion is to research the going rate for the Georgia real estate market in which the home is located and offer that amount to buyer's agents. If the total going rate is 6% and the buyer's agent earns half (3%) then a savvy seller can use a flat rate real estate brokerage and save roughly 50% over the traditional real estate business model.
We have found this business model is one of the best real estate business models to be developed in many, many years. For business minded sellers such as builders, investors, or sellers that have business sense, it is a great solution. It is better than for sale by owner and it is less expensive than the traditional real estate model. Keep in mind it is not the solution for ALL sellers...I'll cover who should avoid it in my next blog.
What do you think of the impact of flat rate mls listings?
Original post on Point2.
This is how it typically works: A home owner lists the home for sale with a flat rate mls real estate brokerage such as DitY Realty (DitY stands for do it yourself realty / real estate). The flat rate covers the cost of putting the home on various local, national, and proprietary websites. It typically covers the cost of putting it on the mls, although many of DitY Realty's competitors charge an extra fee (i.e. an additional $195) for posting the home to the local mls. Once the home has been posted to the websites and/or the mls the flat rate company simply lets the marketing do its job.
What's not included in the flat rate is the cost to bring a buyer. The fee to bring a buyer to the table is not set by law; it is set by local markets. Often the buyer's agent earns 3% in commission for bringing a buyer. A seller's agent (traditional or flat rate) must post on the mls the commission amount the seller is willing to pay. Yes it is possible to post zero % but then a seller should expect to get zero activity from real estate agents with qualified buyers. Chasing buyer’s agents away defeats the purpose of using the Georgia mls entirely.
Our suggestion is to research the going rate for the Georgia real estate market in which the home is located and offer that amount to buyer's agents. If the total going rate is 6% and the buyer's agent earns half (3%) then a savvy seller can use a flat rate real estate brokerage and save roughly 50% over the traditional real estate business model.
We have found this business model is one of the best real estate business models to be developed in many, many years. For business minded sellers such as builders, investors, or sellers that have business sense, it is a great solution. It is better than for sale by owner and it is less expensive than the traditional real estate model. Keep in mind it is not the solution for ALL sellers...I'll cover who should avoid it in my next blog.
What do you think of the impact of flat rate mls listings?
Original post on Point2.
Wednesday, December 10, 2008
Are You "Haunting" Open Houses?
(This is a re-post of a blog that we thought would be of interest to do-it-yourself home buyers.)
Do you find yourself getting that urge to drop-into Open Houses, even when you’re busy? You’re not alone. Many homeowners visit open houses to get design ideas, or to see how their home compares in the neighborhood.
Buy if you find yourself attracted to Open Houses frequently, you might want to ask yourself “why”. You might find that even though you are happy with your current home, you might be subconsciously searching for your dream home. Perhaps you want a bigger yard…a quieter street…a gourmet kitchen, etc.
Whatever the reason, if you are looking at homes for sale in the Kingsland or St. Marys, Georgia area, I can help. Gas prices have come down significantly, but with the increased quality in web searches you can search Georgia homes from a quality site without driving all around town. Of course the only down side is that you lose the fun of personally touring other peoples homes.
Original post on the Royal-Skies Team Blog hosted by Point2.
Do you find yourself getting that urge to drop-into Open Houses, even when you’re busy? You’re not alone. Many homeowners visit open houses to get design ideas, or to see how their home compares in the neighborhood.
Buy if you find yourself attracted to Open Houses frequently, you might want to ask yourself “why”. You might find that even though you are happy with your current home, you might be subconsciously searching for your dream home. Perhaps you want a bigger yard…a quieter street…a gourmet kitchen, etc.
Whatever the reason, if you are looking at homes for sale in the Kingsland or St. Marys, Georgia area, I can help. Gas prices have come down significantly, but with the increased quality in web searches you can search Georgia homes from a quality site without driving all around town. Of course the only down side is that you lose the fun of personally touring other peoples homes.
Original post on the Royal-Skies Team Blog hosted by Point2.
Wednesday, December 3, 2008
Could this be the end?
Some economists are speculating that the surge in mortgage applications could signify the bottom of our down market. Could this be the end of our housing slump?
"U.S. mortgage applications surged by the largest amount on record last week as a new Federal Reserve program pushed interest rates down to their lowest level in more than 3 years, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Nov. 28 soared a record 112.1% to 857.7."
Source: Fox Business News
With rates this low and prices still down now may be the time to buy a home in Georgia.
Any thoughts??
Original Post can be found on Point2.
"U.S. mortgage applications surged by the largest amount on record last week as a new Federal Reserve program pushed interest rates down to their lowest level in more than 3 years, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Nov. 28 soared a record 112.1% to 857.7."
Source: Fox Business News
With rates this low and prices still down now may be the time to buy a home in Georgia.
Any thoughts??
Original Post can be found on Point2.
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