Realty Freak

We Just Want Things Back The Way They Were

This coming April the Northwest Multiple Listing Service (Seattle) will stop sending it's listings to the Nations No. 1 real estate website, Realtor.com. 

Big brokers say they want the MLS to focus on providing information to it's members.  Smaller brokers say the move away from Realtor.com is just another way to make it harder for them to reach home shoppers.

I don't see how a data feed from an MLS to Realtor.com takes focus away from the MLS membership, but you be the judge.

Link to the article.

Excerpt

An excerpt from a conversation between Evan Kane, the founder of Endeavor Realty and Joseph Ferrara of Sellsius Real Estate Blog regarding Endeavor Realty’s $1 listing:

Kane:

The listing remarks are very clear that the house is not going to be sold for $1. (By the way, we use $1 because MLSNI will not allow OBO or Best Offer in the list price field)  The only people that seem to be upset and/or confused are real estate agents, the MLSNI and the North Shore Association of Realtors. 

In fact, the only negative response we have personally received from other agents ( I am sure many have complained to the MLS and the Association) have been in regards to the owners decision to offer a lower than "standard" co-brokerage commission (but that is a story in itself.)

What I personally find most interesting is how Realtors fail to appreciate how this type of listing works in their favor in terms of acquiring business.  Unlike a conventional listing, a consumer without a real estate agent is at a clear information disadvantage in comparison to a consumer using a buyers agent. 

I would even go as far to say that the one flaw in using this "Best Offer" strategy is that it requires a knowledgeable and professional real estate agent representing the buyer to be successful.  A typical consumer just doesn't have the information or expertise to make an offer without the help of an agent.

Imagine if "Best Offer" listings became commonplace.  I think agents could find the value proposition to the service they offer that seems to be harder and harder for most of them to find.  The "Best Offer" practice could be the "magic bullet" that makes real estate agents relevant in the internet age.  The flaw?  It would require buyers' agents to do a lot more work than driving people around and filling in contracts.

This Could Get Ugly

MLSNI and NAR have already told Endeavor Realty that it "can't do that" although they have failed to show what rule is being broken. Real Estate Broker Uses the Science of Social Psychology to Help Sellers

	NewswireToday - /newswire/ - Chicago, IL, United States, 11/16/2006 - The 2.1 bath, three bedroom house is listed in the MLS for $1. Is this a joke? Is this a mistake? $1 listing attracts the eye of not only potential buyers, but other real estate agents.
	8:30 A.M. Evan Kane from Endeavor Realty listed a two story three bedroom home for sale in the MLS at a listing price of $1.00. It is not often that you see a house in the affluent Chicago suburb of Highland Park listed for sale at $1, but that is what Evan Kane the Broker/Owner of Endeavor Realty has done to help his clients sell their home in an increasingly tough real estate market. Most Real Estate Brokers do not think to use the science of social psychology to help sellers. The real estate market has become increasingly tough causing brokers and real estate agents to have to think of other ways to attract buyers. Endeavor Realty has come up with a different strategy to serve the best interest of its clients. Citing a recent study by Gillian Ku of the London Business School, Adam D. Galinsky, and J. Keith Murnighan of Northwestern University Kane says, "although this is not an auction, the principles are very similar and the evidence is clear that starting low can lead to more traffic and a higher sale price." Not only is approaching a slow market with creative ideas and new strategies increasing traffic and sales for the clients of Endeavor Realty, but it is also attracting other traditional real estate agents that have not thought of going beyond their guiding principles to try something different. Deciding to implement this strategy has caused a few adverse reactions. "They don't like it. I am using the system in a way they didn't contemplate" says Kane of the reaction of more traditional agents. "I have to deal with a few angry phone calls, but it's in the best interest of my client, so I do it."