The Anatomy of a Property Listing

Have you ever wondered where the information that makes up online property listings comes from? Or maybe how you know that information is current or accurate? Or even if there’s a place to see a new listing before other buyers?

Well, it all ties back to something called an MLS.

The rise of the MLS

The content, format, and filing of listings are governed by multiple listing services, the more than 700 local organizations created to match sellers with buyers. MLSs were around long before the Internet, but the migration of real estate listings online suddenly gave them value as content.

The biggest web sites attract millions of unique visitors a month. The most attractive and most current listings attract not only home buyers but online peeping Toms, or “lookie loos,” who aren’t interested in buying a house but like to check out the interiors of their neighbors’ homes and ogle the digs of the rich and famous.

The Internet has greatly changed real estate, but the dominant role of MLSs remains intact. They are the foundational databases that all other real estate sites rely upon for content, from the big national sites like Realtor.com and Zillow to sites hosted by local brokers and agents.

In order to get your home listed on your local MLS, you must work with a broker who is a member. Today, in most markets, if you want to market your home yourself, you can get your home listed by a broker who charges only flat fee rather than a commission.

Listings as an art form
Writing listings is a fine art. The objective is to tell prospective buyers just enough to get then interested in touring the property but not so much as to disqualify it. Many times, prospective buyers will end up purchasing a property quite different from what they have in mind.

A good listing needs to draw them in enough to take a look at the property even if its size, price or location may not conform to what the buyer has in mind.

Listings are produced by the real estate agent representing the seller using a template designed to create content that complies with local MLS rules. The template includes the basics: beds/baths, square footage, lot size, age, utilities and appliances, school district, and more. A mini industry provides brokers with professional photos, “virtual tours” (still photos with a voiceover and music), and videos, which usually do a better job selling a house than words alone.

Obviously, you will see only the home’s features on the listing—not the next door neighbor’s messy back yard or the highway under construction across the street.

Timing listings

A particularly important piece of data is “time on site,” which is different than “days or time on market.” The former refers only to the days that have elapsed since the listing was posted on a particular site. It may—or may not—have been listed on the local MLS for a much longer.

Knowing how long a property has been listed is particularly valuable information. If it hasn’t sold in more than 90 days, that suggests the property might be overpriced for the market. The longer a property has been on the market, the more careful a buyer should be–but the stronger your bargaining position will be as well.

Most multiple listing services require that members release new listings to the service within a short time frame of obtaining the listing, usually 48 hours after signing up a seller. But before that, the brokerage may list the property on its own site, giving its customers a head start.

Getting the jump on other buyers

If you know where you want to buy, it’s a good idea to bookmark local brokers and check out new offerings on a daily basis. In recent years, a new tactic to let buyers know that a new listing is in the works before the home is ready to be shown called “coming soon” builds advance buyer interest in a property.

“Coming soon” is not a new idea. Real estate agents have been sticking “coming soon” signs in the front yards of their clients for decades, especially during sellers’ markets. Now on leading sites you’ll see complete listings marked “coming soon” to premarket homes up to 30 days before they are available to be toured or to accept an offer.

Targeting listings to reach buyers

Once on the MLS, listings can go many places, with the consent of the listing broker. First, the broker and agent listing the property have first shot at posting the listing, then the local MLS will make it available to other brokers and agents.

A number of MLSs have their own consumer-facing sites. MLSs also have agreements with the big national web sites like Zillow and Realtor.com to provide their listings directly from the database. Syndicators like ListHub work directly with brokers to place their listings on sites as diverse as newspapers, magazines, real estate franchises, and regional brokers beyond their local MLS. Brokers get feedback and can tailor their outreach to fit their marketing plan.

Online MLS listings are remarkably timely. MLSs on the large national sites are updated as frequently as every 15 minutes with new listings, sold listings and price changes. Web sites with properties that are not listed on an MLS, like “for sale by owner” listings or “pocket listings”, may not be as current.

Nowhere else in the world can you see so many properties for sale, displayed accurately and attractively. The Internet has truly put America’s real estate for sale inventory at the fingertips of buyers, making it possible for them to monitor virtually all the possibilities within a neighborhood and price range. Sellers now can reach not only a buyer in the same community, but also a relocating family across the nation or an investor actor the globe.

source: totalmortgage.com

The Unexpected Downsides of Selling Without an Agent

With the internet playing such a huge role in selling a house these days, going it alone—no real estate agent in sight—can look like a pretty simple decision. There are a few big reasons you’re probably considering this route, like being able to skip the 6% commission fee and having complete control over everything from asking price to showing times.

These are worthwhile pluses, and they shouldn’t be ignored. But before you decide to take the plunge all on your own, you should also take a look at some of the potential downfalls.


Pricing.  A large part of a real estate agent’s upfront work is research. How much have similar homes sold for? What are prices in the neighborhood like? What developments are down the road for this area?

Unless you live and breathe real estate, those questions may take a lot of time to answer. Even then, pricing your own home can be difficult for sentimentality’s sake. Many homeowners set their initial asking price too high and scare off would-be buyers.  Others make the mistake of setting it too low and lose money they might have gained.

You may still have to pay commission. Just because you’re forgoing an agent doesn’t mean your potential buyers will. When a seller pays that 6% commission, his or her agent typically splits it with the buyer’s agent—meaning you’re still responsible for that 3% unless you can convince the buyers to pay for it on their own. 3% may be a lot better than 6%, but it’s still more than most expect when deciding against an agent.

It may take longer. Selling a house with a realtor isn’t often a speedy process, but doing it yourself could take even longer. There are several reasons for this. First, without a realtor you won’t have access to the Multiple Listing Service, which agents use to advertise to other agents. That means less visibility, leaving you to put more time and energy into marketing on your own.

Also, unless you or a spouse can make selling your house a full-time job, you’re going to have to work around your current schedule, limiting your opportunities to show the house. When you do show it, expect to still have to wade through the usual amount of window-shoppers and nosy neighbors.

The bargaining and paperwork. Even after you’ve found a buyer, the difficulties aren’t necessarily over. Without a real estate agent to act as buffer between you and the buyer, negotiations can get dicey. Often, for sale by owner homes attract bargain hunters who expect a lower price. The key is to not get emotional, and also know what you’re willing to compromise on from the start.

Closings also come with a lot of legal paperwork, and without an agent to handle it for you, you’re going to need to do a lot of research or else risk your biggest investment. There are buyer’s contingencies, disclosure laws, and title and deed requirements to get up to speed on, and if it ends up being too overwhelming, you may have to involve a real estate attorney anyway.

The bottom line?

Selling a home on your own can be great if you have the right experience and already know what you’re doing. If not, sticking with an agent can actually save you hassle and money.

source: totalmortgage.com

How to Spot a Bad Realtor—And then Part Ways Properly

Just because real estate agents have guidelines to follow and tests to pass doesn’t mean they’re all the same, quality-wise. Whether you’re putting your home on the market or about to start the search, here are the hallmarks of a realtor you should stay away from.

The agent is difficult to get a hold of

Communication is a super important part of home selling and buying process. If your realtor takes longer than 24 hours to get back to you, or won’t give you weekly status updates, then it just isn’t going to work out and you might want to consider switching.

The agent is part-time.

Nothing against people who have other commitments, but if this isn’t your realtor’s full time job, you might want to look elsewhere. Having an agent on the outskirts of the industry usually means you’re the one missing out.

On the same note, don’t feel like you need to work with a friend or relative just because they happen to have a real estate license. If they’re not working actively and familiar with your area, they’re really not qualified to be helping you sell or buy.

The agent makes too-good-to-be true promises

In a down market, or even one that’s just starting to pick back up again, you’re going to have to face certain realities, and a good realtor won’t sugarcoat them for you.

So what sort of things should you hear from a good agent? That the longer your home is on the market, the more you will have to drop the price. That you may need to make some improvements before your home is attractive to buyers. That you may not be able to get exactly what you want for what you’re willing to pay.

The agent pushes you toward homes that don’t fit

Occasionally, you’ll run into realtors who are more concerned about their bottom line than yours.  If your agent is herding you in the direction of properties that are out of your price range or not in your neighborhood, be wary. They may be pushing you toward a friend or associate’s listing, or putting their commission ahead of your needs.

These warning signs are all well and good, but what should you do when you miss them?

The first thing to remember is that your real estate agent is working for you. This isn’t a partnership, and they aren’t lending you their services out of the goodness of their heart. Other than that:

Be upfront. Every real estate agent has broken up with a client at one point or another—you shouldn’t need to tiptoe around their feelings. Lay it out for them.

Don’t hesitate. You’re making this decision for a reason. Don’t let yourself get talked into giving the agent a second chance.

Be respectful. When you point fingers and get angry, no one comes out of the situation looking good. Not to mention that you may need to, or even want to, work with this agent again in the future.

source: totalmortgage.com

Is it time to move out of your parents' home?

Things to consider before buying your first home

MANILA, Philippines - You’re in your twenties with a stable job and thinking it’s time to strike out on your own. After many years living in your parents’ home, you feel that the time is right to leave the nest and test your wings.

While renting in the city seems like the more manageable option, buying one that you can call your own is ultimately the better decision. Consider that the rent you pay monthly is money gone forever. Payments on your mortgage, however, amounts to a tangible investment that can shelter you for years or an asset that you can sell at a most opportune moment.

Lower interest rates complemented by encouraging financing packages from banking institutions have driven the demand for housing loans. Match that with a robust economy, appreciating land prices, and the continuous development of new condominiums and residential villages, and you have the wonderful opportunity to make a wise investment.

First off, find out how much you can afford.

Of course, the dream would be to own a piece of prime real estate at the heart of a growing city or a four-bedroom home with a sprawling yard in a gated community, but you have to be realistic. Take a close look at your savings and monthly expenses to figure out how much you can spend on mortgage payments. Financial advisers recommend you should not have to shell out more than 28 percent of your monthly income to mortgage payments so that you can still pursue your other money goals like planning a dream wedding or going on a much-needed vacation to reward yourself.

Engage the services of a trustworthy and experienced real estate agent.

Most people try to scout options on their own, reading newspaper classifieds or going online. But a good real estate agent knows the lay of the land, so to speak. He or she can give you all sorts of insider information from the type of properties available in a particular location as well as how long such properties have been on the market - and why. Choose one that you can absolutely trust as you’re going to be plunking down a lot of your earnings on this investment. Go through the website of the Real Estate Brokers of the Philippines (www.rebap.com.ph) to acquaint yourself with potential candidates. Better yet, ask referrals from family and friends; those whose character and integrity they can vouch for.

Narrow down your choices.

Whether you’ll invest in a condominium in Bonifacio Global City or a house in Santa Rosa, Laguna depends on the kind of life you’d want to be living in for the next couple of years. Are you settling down anytime soon? Perhaps a three-bedroom affair in an exclusive subdivision with parks and schools nearby would be to your liking. If you expect to stay single for a few more years yet, then a condominium unit accessible to places of work and recreation is ideal.

Take your time in checking out each and every property that catches your attention.

Acquaint yourself with the developers. Look at the properties that they have established. If possible, get the feedback of current homeowners; this is particularly relevant if you are buying a property at its pre-selling period. If your real estate agent cannot help you with this, you can always tap your network of social media friends.

If you are looking at buying a finished house or condominium unit, then go through the property thoroughly, inspecting its every nook and cranny. If an engineer or architect friend can accompany you during the inspection, then that would be even better.

More importantly, keep tabs on land values. You might end up selling your home in the future, and if it’s located in an area with appreciating land prices, you’ll get a better return on it.

Shop around for mortgage options.

When you have finally decided on the property, explore your mortgage options. Put simply, a mortgage is a loan which uses a piece of property as collateral. If you are unable to meet your mortgage payments, the lending institution can take your property away, which in most cases is the very home that you’re paying for. Different financial institutions offer different packages, offering a variety of terms and interest rates. Most developers are also allied with banking institutions to meet the financing needs of potential buyers. Analyze each option carefully.

Read before you sign.

Because this is your first time to make such a significant purchase, it is best to seek expert advice, especially when signing date draws near. Ask a draft of the contract from your real estate agent, and if possible, have a lawyer go through the papers with you. If there is something that you do not understand, then ask for an explanation. Don’t let go of the document until you perfectly understand its weight and meaning.

Buying your first home could be one of the biggest decisions you will make in your adult life – make sure it is an informed choice.

source: www.abs-cbnnews.com

Silicon Valley braces for Facebook millionaires

SAN FRANCISCO — As Facebook goes public, Silicon Valley is buzzing in anticipation of the “instant millionaires” that may soon be looking for ways to spend their newfound wealth.

Eight years after Mark Zuckerberg founded the company in a Harvard dorm room, the stock market debut is expected to value the social media giant at as much as $100 billion.

While Zuckerberg and other longtime staffers stand to benefit the most, the initial public offering on Wednesday could also make millionaires out of much of the company’s rank-and-file.

Local real estate agents say they expect the IPO — at $5 billion easily the largest ever by a technology company — to boost already high home prices as newly wealthy staffers at the social media giant begin shopping.

“It’s going to have a great effect,” said Pierre Buljan, a Silicon Valley real estate agent who shows homes to young technology executives. “I believe with 1,000 new millionaires, they’re going to need a place to live.”

Buljan said his typical client often seeks “modern, high-tech structures” close to the airport and good schools.

“They don’t like the stuff their parents used to live in,” he said.

Typically clients pay cash for the homes, he said, which can range anywhere from 4,000 to 15,000 square feet (372 to 1,393 square meters) depending on the size of the family.

Real estate agent Dawn Thomas said she is already seeing home prices rise in areas surrounding Facebook’s Menlo Park headquarters and expects that to continue.

“You’re going to have all these instant millionaires on the streets,” Thomas said. “The trickle is already happening.”

Thomas described her tech-savvy homebuyers as “very, very green-minded” and in search of smaller, tech-equipped, energy-efficient homes with high-end amenities.

“They don’t want ‘McMansions,’” she said, referring to super-sized houses that can gobble up energy.

Thomas and Buljan both cautioned that it will take time to see the full effect of the IPO. Facebook shares will not actually begin trading on Wall Street until later this year.

The social networking company may also be taking steps to avoid sparking a buying craze that could spark another housing bubble.

Buljan said he’s heard Facebook has cautioned its soon-to-be millionaires to take their time when purchasing a home in order to avoid staffers flooding the market and essentially bidding against each other.

“They’re very young, 20s and 30s, and the fact is they’re getting some good warnings from inside company execs,” Buljan said. “They don’t want it to be about Facebook has got all these crazy people out there shopping.”

That’s good advice, according to Sam Hamadeh, chief executive of the financial research company PrivCo.

Hamadeh said employees can typically start selling their shares 180 days after a company goes public.

But he said he would advise staffers to resist the temptation to borrow heavily against vested holdings or cash in immediately once those six months are up.

With past IPOs, “a lot of people have gotten devastated by putting down big downpayments on homes” that they later couldn’t afford when share prices dropped, Hamadeh said.

Instead, he said shareholders should sell slowly and not expect prices to soar indefinitely.

“When they can start selling, everyone can start selling,” Hamadeh said. “Between the IPO and six months, you’d be surprised how fast shares can tank sometimes.”

source: interaksyon.com