THE FACTS OF
LIFE FOR SELLERS
I. Your House Cannot
Sell for a Penny More Than the Best Offer Obtainable from the Best Buyer Available in the Current Market.
Recent sales of similar properties have historical value,
but the "best buyer" we are looking for is to be found in the present market place, not in the past record books. Our job
is to find that buyer and obtain his or her highest possible offer. No house in history has ever sold for more than the best
offer obtainable from the best buyer available in the current market.
II. The Only Way
to Find the True Value of a House is to Thoroughly Test the Market and Aggressively Challenge the Competition.
Appraisals and expert opinions can be helpful in establishing a listing price for your home, but its ultimate selling price will be
determined by the prospective buyers whom we are able to contact. Buyers will compare your home with other offerings in their
price range and make judgments. It is critical that your home be competitive in price and appeal with the other options that
these prospective buyers will be considering.
III. Testing a Bigger
Market and a Better Market with Greater Skill Yields a Better Price.
It is axiomatic that the larger the market you can reach
and the higher the quality of that market, the better the price you will realize. It stands to reason, for example, that sellers
working alone can expose their home only to the small segment of the market that can be reached by a single sign and limited
advertising. It is also important to note that, in spite of the multiple signs and substantial sums of money spent on advertising,
these two sources typically account for only about 20% of the actual buyers attracted to a typical real estate office. The
other 80% of the market is represented by the efforts of cooperating brokers and the marketing activities of real estate brokers
and sales associates. It is also well-established that the buyers most ready, willing and able to act are almost invariably
availing themselves of the services of real estate professionals. Finally, the best buyer, unless he or she is being handled
by a skilled professional, can often come and go without making a commitment.
IV. An Appropriate
Listing Price Will, Immediately and Consistently, Attract Attention and Generate Activity.
The process of testing the market need not be a lengthy
one, regardless of marketing conditions. As we said before, buyers do comparison shopping and act accordingly. When a property
is first exposed to the market, both buyers and brokers make instant evaluations of the offering and, if it compares favorably
with what they have already seen, it will not only attract their attention, but stimulate them to inquire for details and
arrange appointments to inspect. Your listing price must be realistic enough to immediately attract this attention from buyers
and brokers. If it does not do so, while competitive properties are attracting attention and generating activity, you have
a clear indication that the listing price is not meeting the acid test of the marketplace, regardless of economic conditions
or other external considerations.
V. A Home that is
Priced Realistically and Marketed Effectively Will Always Sell.
There's an old saying that the three most important
words in real estate are "location, location, and location." Like a lot of old sayings, it is simply untrue. No matter how
poor the location might be, there is a price at which it will sell, and that price will be determined by testing the market.
The three most important words in real estate, therefore, are Price, Price, and Price - followed by marketing. Unless the
price and terms are competitive, the chances of a home selling are slim to none; and even realistic pricing should be supported
by the thorough testing of the market and aggressive challenging of the competition that can best be performed by skilled
professionals.
When realistic pricing is combined with effective marketing,
there is a buyer for everything and, given these conditions, any home can be sold in any market.
Homes that languish unsold on the market for months
or even years are ignoring these "facts of real estate life," often causing unnecessary inconvenience and financial damage
to their owners and agents.
The market is not always kind, but it is never wrong...
and those who believe otherwise pay a heavy price for ignoring these facts of life.
WHAT IS
MLS?
Anyone who has even a passing interest in the real estate
market has seen or heard the term 'MLS®.' But few consumers know exactly what MLS® is, or understand
the important role it plays in the real estate industry.
The MLS® system, also known as the Multiple
Listing Service® is a complex information-sharing and cooperative marketing network created by REALTORS®
several decades ago to help the public buy and sell homes. While it is computer based today, it began as an exchange of paper
listing information and photographs.
The Multiple Listing Service® or MLS®
is a member based service, paid for by the REALTOR® members of the local real estate Board. The MLS®
mark symbolizes the cooperation among REALTORS® to effect the purchase and sale of real estate, and is much more
than a database of property information. It is the local real estate Board that actually administers and operates the local
MLS® system.
The MLS® service makes the real estate industry
unique by encouraging a high degree of cooperation among salespeople. For example, if you're shopping for a car and you visit
a local dealer, the salesperson's goal is to sell you a car from that car lot. They won't provide you with information on
cars available at other competing dealerships. In the real estate industry, the opposite is true. The MLS® service
allows for cooperation between all REALTORS® no matter which company they work for.
If you are selling a property, listing with a REALTOR®
who uses the MLS® service means your property gets maximum marketing exposure
to all other members of the local Board. You'll have REALTORS® everywhere trying to find a buyer for your property.
It is the MLS® computer system that will provide other members of the real estate Board with detailed information
about your property.
If you are buying a property, the MLS® system
is a valuable research tool for your REALTOR®. They'll input the criteria you want and generate a list of all properties
that meet your needs. These homes might be listed by other REALTORS® from five or ten other companies - to your
REALTOR®, it doesn't matter. Their goal is to help you find the property you want. The MLS® system supplements
the in-depth knowledge the REALTOR® has of the neighborhood and current market conditions to help you make a wise
buying decision.
The MLS® system provides REALTORS®
with access to much more detailed information than you'll find on a web site. MLS® information will include room-by-room
measurements and specifics on the property condition, renovations, property zoning and rental rates. Through the system, REALTORS®
can also access the sales history of a home in order to see how many times it
has changed hands and at what prices.
Whether you're buying or selling, the MLS® system
is an indispensable tool for your REALTOR®.
