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

5 Things to Consider When Buying a Foreclosure

Buying a home in foreclosure may seem like a good way to get in on some cheap real-estate, but with all the possible headaches, is it worth it? Ultimately, that’s for you to decide, but if you do choose to give it a go, keep these five thoughts in mind.

1. Find a real estate broker who specializes in foreclosed homes

Having an expert on hand is always a good thing. They’ll provide useful insight, and a lot of times, they’ll be aware of homes that haven’t even reached the market yet.

2. Get a pre-approval from a lender

Most buyers want to shop around, find their perfect home, and then work out the financing. However, with foreclosed homes, the deals move quickly, and if you aren’t pre-approved, that extra time could cost you your desired home.

3. Prices can change

Just because it’s a foreclosed home doesn’t mean the price is set in stone; there can still be multiple offers that drive the price up. Do your research, and find out the recent prices of comparable properties (comps) to make sure your offer is on point.

4. Plan for the long-run

If you’re only goal is to make a quick flip, you could end up with regrets if your plan falls through. To avoid such a tragedy, have a back-up plan that accounts for you holding onto the property for at least five years.

5. It’s going to need work

Foreclosed homes are sold as they stand, and this almost always means you’ll be doing some renovating. If you aren’t friends with a skilled tradesman, or don’t like DIY projects, foreclosed homes may not be for you.

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

Know the Difference: Realtors, Real Estate Agents and Brokers

Real estate agents, real estate brokers, and realtors. What’s the difference? They all sell property, right? They’re all collecting commissions, and they all know how to negotiate deals. Why bother learning what the difference is? It’s sort of like a red house vs a blue house. They’re both houses, right? Not so fast. There are actually some key differences between all three of these designations. Knowing them might mean the difference between selling your home and keeping it for another year.

What An Agent Does

An agent is a real estate professional that works on your behalf to find you the right home. He negotiates for a price that you should be happy with, and he does not chase sales for commissions. Even though he does earn a commission on every sale, he has a fiduciary duty to make sure that you’re getting the home you need and deserve. He has a responsibility to you, the consumer.

That doesn’t mean that you shouldn’t hire another independent inspector to check out the home – even when you’re working with an agent from trusted sources, like Agent Harvest. Having a second opinion can confirm what the agent is telling you.

What A Broker Does

A broker is a real estate professional that usually has more experience. He is a senior agent with additional education and training under his belt. He’s also probably in a more managerial role at a real estate brokerage.

He may also be a specialist when it comes to certain types of property. However, real estate agents and real estate brokers are sometimes interchangeable, depending on where you live in the country. If you’re unsure whether there’s a difference where you live, ask. It’s the easiest way to clarify any misunderstanding, and it might just make the difference in how much you get for your home.

For example, if you have the opportunity to work with a broker, a senior agent, you might ge better service than from an agent (someone younger in the business). If your broker doesn’t really specialize in the types of home that you have, or the area where you live, then a broker might mean the difference between selling the house quickly and staying where you are for another year.

That’s a serious consideration, especially if you have to move because of a job relocation or you just need to sell the home to downsize or pay off debts.

What Realtors Do

Realtors differ from real estate agents and brokers in that they are members of the National Association of Realtors. This is an independent organization of real estate agents, brokers, and other real estate professionals.

It’s not so much that these people are radically different in what they do. It’s more that they may have more extensive training and they are bound by a specific code of ethics and a fiduciary duty that brokers might not have. Even agents aren’t held to the same standards as Realtors. So, choose wisely, and regardless of who you choose, always do your research. Just because someone has the education and training, or even experience, doesn’t mean they will be a good fit, personality-wise.

Phillip Waterman’s career in real estate spans decades. With a keen eye and clear manner, he enjoys writing about navigating the real estate market for today’s buyers and sellers.

source: 20smoney.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