Landfall Properties, LLC Pioneered the use of FREE MLS Listings Across New England
Copyright © 2014- 2019 AUTHOR: Paul R. Marino, REALTOR®, e-Pro®
The benefits of utilizing the services of a Flat Fee MLS Listing service (aka Entry Only Listing service), are not yet well known to the general public, but will soon become commonplace, thanks in part to a US Justice Department that looks favorably on this business model, and does a great job of explaining the details.
But don't take my word for it. Examine the facts for yourselves. On 11/18/2008, the National Association of Realtors (NAR) quietly settled a lawsuit previously filed by the United States Department of Justice. Who cares you ask? You should care if preserving hard fought homeowner equity is important to you.
When the case was originally filed with the U.S. District Court in Chicago, J. Bruce McDonald, Deputy Assistant Attorney General in the Department's Antitrust Division said the following: “The purchase of a home is one of the most significant financial decisions a family can make, and NAR's policy stifles competition to advantage some of its members at the expense of home buyers and sellers across the country." Further, he went on to say, "Consumers benefit when real estate brokers are free to compete vigorously by offering innovative services."
The real estate business model I espouse is based on a careful analysis of market trends, reams of statistical data, and decades of “in the trench” experience – all of which point to the same logical conclusion. And what is that conclusion? Simply stated, it is the conclusion that the Buyer Broker does the real “heavy lifting” in the overwhelming majority of real estate transactions in every market in the United States (the world actually). The difficult task of bringing in a viable buyer continues to be one of the most valuable contributions made by the broker community.
LET’S EXAMINE THE FACTS. THE HARD DATA.
As I’m sure you’ve gathered by now, I’m a big proponent of exposing the truth (no matter where it takes me). I like shining “flashlights” to uncover what’s hidden behind the curtain. One of my favorite movie scenes as a child was watching “Toto” pull back the drapes on the “Wizard of Oz”, exposing what was really behind the “smoke and mirrors”.
Facts are stubborn things. In the next few paragraphs, I will dramatically demonstrate why you are well positioned to save yourself literally thousands on the listing side of a real estate transaction. By listing side, I’m referring to the brokerage with the sign on the front lawn. As a former student of economics, I have a certain fascination with statistical data, and spend a fair amount of time analyzing historical trends, consumer patterns, and trending statistics. In an effort to dramatically prove the point that literally thousands of consumer dollars are being wasted on the listing side of a transaction, I decided to look at the facts. Take a seat, because what I am about to reveal will be an “eye opener” for many.
I recently examined summary data targeting every MLS transaction taking place in the NEREN (New England Real Estate Network) MLS for a precise interval of exactly one week. I could pull up this same trend data in any other state for which we are licensed (Connecticut, Massachusetts, Maine, New Hampshire, or Vermont). The trend data is there, plain as day, staring right at all of us. During the particular week examined (selected at random), the database reports a grand total of 437 sales taking place in the combined states of New Hampshire and Vermont.
SOME SUMMARY DATA.
The median sale price for a single family home in the New Hampshire and Vermont market = $230,000
The median days on market (DOM) for these same parameters = 50 days (half sold in less than 50 days, and half sold in more than 50 days)
NOW THE GOOD STUFF. HOW LONG DID IT TAKE TO PLACE THESE PROPERTIES UNDER AGREEMENT (SECURE A SIGNED CONTRACT)?
- Less than 5 days: 57 out of 437 transactions, or 13%
- Less than 7 days (ONE WEEK): 78 out of 437 transactions, or 17.9%
- Less than 14 days (TWO WEEKS): 130 out of 437 transactions, or 29.8%
WOW. Nearly one in three transactions taking place during this time interval was placed under contract in 2 weeks or less.
- Less than 30 days (ONE MONTH): 183 out of 437 transactions, or 41.2%
- Less than 45 days: 212 out of 437 transactions, or 48.5%
- Less than 60 days (TWO MONTHS): 237 out of 437 transactions, or 54.2%
So, nearly HALF of all transactions secured a contract in 45 days or less. Not bad. But the more sobering statistic, is that nearly one-third were placed under contract in two weeks or less. My personal favorite is this. 13% of all the homes were placed under agreement in 5 days or less.
I don’t know about you, but I can’t do too many “big things” in 5 days or less. THE MOST CONVINCING "NUGGET" OF ALL. I carefully examined the 78 transactions that sold in 7 days or less. Of this figure, 32% (25) were sold by the Listing Broker (in other words, the Listing Broker also brought in the Buyer, in addition to listing the house).
But 68% (more than two-thirds), or 53 sales, were sold by a broker OTHER THAN THE LISTING BROKER, which proves, UNEQUIVOCALLY, that it is the BUYER BROKER that is doing the bulk of the "heavy lifting".
So let’s see. The median sale price is $230,000. We’ll use a realistic (but hypothetical) 5.5% real estate commission to calculate the numbers. 5.5% of $230,000 = $12,650. In a traditional sale, this means roughly half going to the Listing Broker ($6,325), and roughly half going to the Buyer Broker ($6,325).
If you had gone the Flat Fee MLS Listing route, you could have pocketed that $6,325 yourself.
So let me ask you. Does anybody out there really believe that any “mere mortal” sprinkled magical pixie dust on the house, and performed some dazzling marketing feat? What sold the house was exposure in the MLS, and a correctly priced home. PERIOD.
Quite simply, the Buyer found you on the Internet (MLS replicates to hundreds of home search web sites across the web). We’ll get you the MLS exposure. You spend the $6,325 any way you want!
