Blog4owners - The MLS4owners.com Blog

IMPORTANT UPDATE FOR MLS4OWNERS.COM CUSTOMERS

noreply@blogger.com (MLS4owners) — Fri, 22 Jul 2011 19:03:00 +0000

State of Washington changes Seller Disclosure Requirements
Figuring out whether a buyer is qualified to purchase your home
Opportunity to re-list when listing expires

State of Washington changes Seller Disclosure Requirements

The State of Washington’s Seller Disclosure Law changed on Friday July 22, 2011, which means new disclosure forms are available. Form 17 is for improved properties (such as houses). Form 17C is for unimproved properties (such as land). Here is the advice we have been given on how they should be used:

Sellers should use the new version of Form 17 (rev. 7/11) or Form 17C (rev. 7/11) for transactions where the parties reach mutual acceptance on or after July 22nd.

Sellers should use the prior version of Form 17 (rev. 7/09) or Form 17C (rev. 6/10) for transactions where the parties reach mutual acceptance before July 22nd and the seller provides Form 17 or Form 17C to the buyer before July 22nd.

Sellers should use the new version of Form 17 (rev. 7/11) or Form 17C (rev. 7/11) for transactions where the parties reach mutual acceptance before July 22nd, but the seller does not provide Form 17 or Form 17C until July 22nd or later.

If you have any concerns about whether the new law applies to you or questions about how to complete or use the form, please consult with a real estate attorney as MLS4owners.com and other brokers are not permitted to offer legal advice.

Figuring out whether a buyer is qualified to purchase your home

One of the most important elements in selling your home is the buyer's ability to obtain financing. Most sellers have a difficult time figuring out if a prospective buyer has the ability to purchase your home and if the pre-approval letter is legitimately backed up by the banking institution or if it is just information they viewed online. MLS4owners Mortgage supported by Cobalt Mortgage is available to help you, and they will be in touch to answer any questions you may have. More information is under the Mortgage Center tab on our front page.

Opportunity to re-list when listing expires

Back in 2005, when the real estate market was rocking and rolling, a typical seller found a buyer in 17 days. As you all know, times have changed and many sellers need much longer to complete their sale. If your listing expires and you would like to continue to list with MLS4owners.com for an additional year, you could start a new listing at HALF the prevailing cost of a new listing. Your property would get a new MLS number and your listing could stay active for up to 12 more months under the new Agreement. We can re-use your previous listing data if you wish, or you can make changes. Just let us know if we can help. The “Data Verification” email that arrived when your listing was activated includes a report that shows your expiration date, on which the multiple listing service database automatically lets listings expire.

Homeselling Tip: Make your home show up more often in property searches

noreply@blogger.com (MLS4owners) — Wed, 20 Apr 2011 16:45:00 +0000

One way to increase the number of times a property shows up in searches is to have the price end in 000. For example, a $175,000 house would show up if somebody was searching in the 150-175 range AND in the 175-200 range. Whether they will think the house is attractively priced is a separate matter, but this is one way to attract eyeballs.

How to quickly share your property on Facebook, Twitter or email

noreply@blogger.com (MLS4owners) — Tue, 29 Mar 2011 17:08:00 +0000

Did you know you can easily let your friends and associates know about the home you are selling by clicking on the "SHARE PROPERTY" link on the right side of your property details page? Every MLS4owners.com seller has this tool available. Just write a short note and send it off. Who knows? Maybe your friends will re-post it and help to spread the word!

What happens when For Sale By Owners cancel flat fee MLS listings?

noreply@blogger.com (MLS4owners) — Sat, 01 Jan 2011 19:44:00 +0000

Over the years we have done many studies of our customers' results. The most recent looked at the experiences of the former customers of a defunct brokerage who accepted our December 2009 offer of free service.

On December 9, 2010 we examined what had happened to those who subsequently canceled their listings and re-listed in the Northwest Multiple Listing Service with another real estate brokerage. For single family residential and condo properties, 20 sellers fit that description. Of those, eleven have canceled or let expire their new listings. Five were still active and only four had sold.

Of the four that sold while listed with other brokerages, NONE sold anywhere near their previous asking price. The price reduction from their previous lowest price varied from $47,000 to $85,000 (range of 10.4% to 20.3%). On top of that they probably paid a larger commission than they would have otherwise.

These results are consistent with what all of our previous studies have shown, and are more evidence that the key to selling is having your property priced right for its condition and location.

Worried about winter? Sign up for automatic emergency management notifications

noreply@blogger.com (MLS4owners) — Thu, 11 Nov 2010 19:48:00 +0000

We received a pamphlet the other day describing the Pierce County Washington Emergency Management System and their new Pierce County ALERT system. ALERT allows you to register for emergency management, public notices and weather update notifications by text message, email or phone. You can register as many county addresses as you wish at http://www.piercecountywa.org/alert.

The Regional Public Information Network (RPIN) has a similar system and idenitifies themselves as "your one-stop resource for news alerts from more than 75 government, transportation, utility, health and emergency response agencies serving citizens in King, Pierce and Snohomish counties." Check them out at http://www.rpin.org/

Live outside of the greater Seattle-Tacoma-Everett area? Just do an Internet search for "emergency management alerts" in your county.

How did YOU choose your last home mortgage?

noreply@blogger.com (MLS4owners) — Mon, 01 Nov 2010 22:50:00 +0000

How did YOU choose the provider of your last home mortgage? Perhaps you went to the bank or credit union you were already using. Maybe you came across an advertisement on the Internet, TV, or radio. Some of you used whoever your real estate broker advised you to use. Those all seem like good ideas, but please use care. You are swimming in shark-infested waters.

Our best advice is to do what many experts have always told us to do, but few of us choose to pursue. Try 3 different sources. One should be your bank or credit union. Another should be a mortgage broker. And the third should be one of the online options. Then ignore all the flowery language and start comparing numbers. You may be surprised at how much they differ.

For more information, check out the Federal Reserve publication.

2009 National Association of REALTORS Profile of Home Buyers and Sellers

noreply@blogger.com (MLS4owners) — Fri, 11 Dec 2009 21:07:00 +0000

With all of the turmoil in the residential real estate market, one of the best steps a consumer can take is to become educated. Annually, we look forward to reading the new National Association of REALTORS Profile of Home Buyers and Sellers. We’ve been reading it since 1999, and the raw data is always interesting to review. Here are a few results from the 2009 survey, along with our take on the meaning of those results.

(Exhibit 1-22) Primary Reason for timing of home purchase: Only 8% said it was because of the availability of homes for sale (5th choice). Top choice was “buyer was ready to buy”. We see a lot of people wanting to go on the market in the spring and summer, often because they believe that’s when buyers are looking. The reality appears to be that buyers are more likely to look when they are ready to look, as opposed to when the inventory is highest.
Implication: If you are ready to sell you should go on the market, regardless of the time of year.

(Page 42) “Before contacting an agent, home buyers spend about two weeks gathering their own information on the homes.”
Implication: Buyers, not buyer agents, are in control of the identification of homes available for purchase.

(Exhibit 3-1) First step taken during home buying process: Only 18% contact an agent first (and only 14% for buyers under the age of 44).
Implication: Buyers, not buyer agents, are in control of the identification of homes available for purchase.

(Exhibit 3-3) Information sources used in home search: 96% of buyers under the age of 44 (and 90% of all buyers) use the Internet, more than any other source.
Implication: Buyers, not buyer agents, are in control of the identification of homes available for purchase.

(Exhibit 3-6) Usefulness of information sources for home buyers: Of the 90% buyers that use the Internet, less than 1% found that information source to be “not useful” and 77% found it “very useful”.
Implication: Internet searches are the most useful source of information for home buyers.

(Exhibit 3-6) Usefulness of information sources for home buyers: Of the 26% of buyers that use home books or magazines, 90% found it “not useful” and 3% found it “very useful”.
Implication: Less than 1% of buyers (3% of 26%) find home books and magazines to be a “very useful” source of information.

(Exhibit 3-6) Usefulness of information sources for home buyers: Of the 40% of buyers that use newspapers, 84% found it “not useful” and 2% found it “very useful”.
Implication: Less than 1% of buyers find home newspapers to be a “very useful” source of information.

(Exhibit 3-6) Usefulness of information sources for home buyers: Of the 46% of buyers that visited open houses, 66% found it “not useful” and 10% found it “very useful”.
Implication: Less than 5% of buyers find open houses to be a “very useful” source of information.

(Exhibit 3-6) Usefulness of information sources for home buyers: Of the 87% of buyers that use buyer agents, 2% found it “not useful” and 81% found it “very useful”.
Implication: About 70% of buyers find buyer agents to be a “very useful” source of information. In today’s market, most buyers choose to be represented.

(Exhibit 3-10) Where buyer found the home they purchased: 36% found the home they purchased from a real estate agent (either a listing agent or a buyer agent), down from 48% in 2001. Another 36% found the home on the Internet, up from 8% in 2001.
Implication: the Internet continues to become a more important source of information for buyers.

(Exhibit 3-13) Actions taken as a result of an Internet Home Search: 77% drove by or viewed the home, while 28% contacted either the listing agent or a buyer agent.
Implication: Buyers are doing significant research about specific homes before contacting an agent.

(Exhibit 3-19) Websites used in home searches: The top 4 types are the local MLS website, real estate brokerage websites, Realtor.com, and real estate agent websites, each used by at least 45% of buyers.
Implication: Websites populated with data that comes from the multiple listing service are vastly more popular with buyers than sites that do not have multiple listing service data.

(Exhibit 7-7) Most important factor in choosing the seller’s listing broker: Regardless of the level of service desired, the #1 factor is the reputation of the listing broker, and second is the listing broker is honest and trustworthy.
Implication: Sellers should learn what other sellers have said about the listing broker before signing a listing agreement.

More studies of real estate results are available here. Happy Reading!

Don't do a short sale ... until you have answered these questions

noreply@blogger.com (MLS4owners) — Mon, 23 Nov 2009 19:24:00 +0000

According to a New York University School of Law report (Time Magazine – 10/24/09), in 2008 as many as 86% of foreclosure victims did not have legal counsel. Distressed homeowners have difficult choices to make about what to do if the equity in their home has evaporated. There are many potential solutions. The one thing they have in common is that real estate brokers are not qualified to advise homeowners on which one is best.

As of November 19, 2009, there are 2,322 single family homes in King County being advertised by real estate brokers as “short sales”, which means the expected proceeds of the sale will not be enough to pay off the mortgage(s) and the seller does not have the resources to make up the difference, which means the home can’t be sold without the approval of the lender(s).

How many of those homeowners sought legal or tax advice before deciding to list their property?
How many of them understand that the bank’s approval of a short sale does not mean the bank is forgiving the loan?
How many of them know that seeking approval of a short sale is similar to applying for a loan, and that the lender will consider all of the homeowner’s assets before deciding whether to approve a short sale?
How many of them understand that real estate agents are not licensed to negotiate debt forgiveness?
For those homeowners who are fortunate enough to negotiate the forgiveness of some of their debt, how many know that the amount forgiven will probably be subject to federal income tax?
How many of them considered other options such as coming to the closing table with enough cash to avoid a short sale, foreclosure, bankruptcy, or trying to hang on to the house until the market recovers?
How many of them understand how each of these options would affect their credit ratings?

MLS4owners.com believes it is dangerous for anybody, much less 86% of the most vulnerable, to skip the step of seeking a preliminary assessment from legal counsel as to whether attempting a short sale is in their best interest.

MLS4owners.com Market Update - Statewide Open House June 27-28

noreply@blogger.com (MLS4owners) — Tue, 23 Jun 2009 20:08:00 +0000

Market Update Topics
Statewide Open House
Legislature changes Seller Disclosure Requirements
Improvements in the Marketplace
Updating your listing if it is a Short Sale

STATEWIDE OPEN HOUSE JUNE 27-28
The state association of REALTORS® is promoting a statewide open house on Saturday and Sunday June 27 and 28. What does this mean for you? It means some of your competitors might be having open houses. While we believe open houses are of limited value, if you would like to host an open house there may be no better time than next weekend. Just put a sign out front and attract the shoppers who are already in the neighborhood to visit your competitors!

LEGISLATURE CHANGES SELLER DISCLOSURE REQUIREMENTS
On July 26, 2009 the State Legislature is implementing new statewide Seller Disclosure requirements for residential real estate sales in Washington. The new forms won’t be available until July 26, but a preview is on the state website. We are told that properties in the closing process as of July 26 will not need the new form (usually known as a Form 17), but offers that are mutually accepted after July 26 will.

UPDATING YOUR LISTING IF IT IS A SHORT SALE
A “short sale” is one in which the proceeds of the sale will not be enough to pay off the mortgage. A short seller might have no problem making monthly payments, but the property’s value is not enough to cover paying off the mortgage and the closing costs. The NWMLS requires that we disclose to agents if a property is subject to a short sale. If you believe that your net proceeds will not be sufficient to pay off the mortgage and your lender will have to give approval for your buyer to take possession, please let us know so we can update your listing.

IMPROVEMENTS IN THE MARKETPLACE
In May we mentioned we had seen an improvement in residential market activity. While we are nowhere near the mid-decade frenzy and prices have fallen quite a bit, our customers are noticing changes. Since May 1, seven of our customers have closed sales that were on the market less than 30 days. For our customers currently in the closing process the median time on market is now 62 days, which is down substantially from earlier in the year. The NWMLS publishes a monthly analysis . Here are other studies of results .
Hang in there!

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What is the difference between a distressed sale and a short sale?

noreply@blogger.com (MLS4owners) — Tue, 12 May 2009 22:08:00 +0000

These real estate phrases are sometimes used interchangeably, but the meanings are very different. Following are oversimplified definitions for the state of Washington.

A “distressed home” is an owner-occupied property for which the owner is having problems making mortgage payments. Distressed sellers might have plenty of equity in their homes but they usually have cash-flow problems.

A “short sale” is one in which the proceeds of the sale will not be enough to pay off the mortgage. A short seller might have no problem making monthly payments, but the property’s value is not enough to cover paying off the mortgage and the closing costs.

These two situations sometimes overlap but in many cases they don’t, especially when real estate values are generally down. The rights and obligations of sellers vary depending on the circumstances, and there are several steps we recommend for those who are unsure how to proceed:

Work with a real estate attorney to protect your interests not only in the purchase and sale agreement but also in negotiations with lenders. Real estate agents are not permitted to offer legal advice or help you modify the terms of your loan, so an attorney is a good option for representing you not only in your purchase and sale but also in your negotiation with your lender. Protect your credit and your equity, and don’t get steamrolled.
Carefully shop for the best rates in title and escrow. It may seem that all the rates are the same, but they aren’t. Wells Fargo Escrow, for example, offers a flat fee that is substantially cheaper than what we have seen advertised elsewhere.
Minimize your closing costs by using a self service realty program such as MLS4owners.com (shameless plug). The money you save in closing costs can be the difference between being a short sale and just being a sale that isn’t as profitable as you had hoped.
If you don’t want to take ownership of the homeselling process and prefer to be represented by a real estate agent, let us know and we can refer you to agents who are experienced at working with short sales.

For more information, you can visit our Help From The Experts page.

WARNING to sellers - guard your prescriptions and cash when prospective buyers are in your house.

noreply@blogger.com (MLS4owners) — Sat, 18 Apr 2009 16:11:00 +0000

Thank you to the Northwest Multiple Listing Service for looking out for the safety of sellers. We received this warning about keeping safe at open houses in the Seattle area, but it applies to all sellers everywhere. As the NWMLS encourages its members to educate their customers, here is their April 17, 2009 bulletin in its entirety:

WARNING - "Eric" has Reappeared
"Eric," who has stolen prescription drugs from open houses in the past, has reappeared. He is a white male, 5’10", mid-to-late 30s, stocky, spiky grey hair (sometimes dyed), neat, tidy and polite. He has been seen driving a white Acura with tan windows, WA license 241XMG. He has used several other names besides "Eric."
Be sure to tell your sellers that medication and money should always be taken out of the home or placed in a secure, locked area during open houses. Please remember to secure the property by locking all doors and windows after every open house.
If you encounter "Eric" at an open house, the Centralized Crime Analysis Unit encourages you to call 911 so that "Eric" can be apprehended. You may want to text a friend to call 911 for you so that you are not forced to call 911 directly in front of "Eric."

If you have any information or have had any contact with "Eric" please call Cynthia, Centralized Crime Analysis Unit, 206-205-7613, case number SO-08-099295.

Do buyers have to tell you the source of their down payment?

noreply@blogger.com (MLS4owners) — Thu, 09 Apr 2009 21:05:00 +0000

Following up on our last post about "Debunking industry myths and fairy tales", here is another myth busted by Washington REALTOR News. Myth Number 6 is shown below in its entirety, and is reprinted with permission from Washington REALTORS(r). This article is not legal advice. You should always consult your own real estate attorney, REALTOR or tax specialist.

Myth Number 6: Buyer has no obligation to disclose the source down payment

There is a version of this myth that is true. But, the extension of this myth to all buyers leads many buyers to commit an act of fraudulent inducement.

If buyer has sufficient cash or liquid resources to pay the down payment and all required closing costs, then absent a request from seller, buyer has no obligation to reveal the source of the down payment. But, if buyer is relying on gift funds, the sale of a house, car or boat, the extension of a line of credit, the refinance of unrelated property or any other source of contingent funds, buyer must disclose this fact to seller, as part of the purchase agreement. Failure to do so results in buyer fraudulently inducing seller to enter the purchase agreement [emphasis ours].

Paragraph (a) of the statewide purchase agreement (form 21) includes a statement indicating that buyer is not relying on any contingent source of funds, unless otherwise noted in the purchase agreement. When buyer attaches a 22A financing contingency, buyer notes the fact that buyer is relying on a contingent source of funds for the purchase of the property, with the exception of the amount of down payment specified in the first paragraph of form 22A and buyer’s closing costs. If buyer is also relying on a contingent source of funds for the down payment and/or payment of closing costs, then buyer must separately note that in the purchase agreement. Buyer does not have to make receipt of the contingent funds a separate contingency of the agreement. If buyer does not receive the contingent funds for the down payment or closing costs, buyer will not obtain financing and will be protected by buyer’s financing contingency, so long as buyer disclosed that the down payment and closing costs were from a contingent source. However, if buyer does not disclose that the down payment or closing costs are dependent upon the occurrence of some contingency, then if those funds fail to materialize, buyer will not be able to rely on buyer’s financing contingency because buyer will have fraudulently induced seller to enter the agreement by initially representing, in paragraph (a) of form 21, that buyer was not relying on a contingent source of funds.

As a side note, because of the unreliability of some lenders and loan programs in today’s market place, many sellers are now demanding that buyers provide documentation proving the cash resources that buyer represents to possess. This requirement is issued prior to seller accepting buyer’s offer.

Debunking industry legends and fairy tales

noreply@blogger.com (MLS4owners) — Thu, 19 Mar 2009 21:29:00 +0000

We read an interesting article in Washington REALTOR News, called "Mythbusters: Debunking industry legends and fairy tales." Myth Number 4 is shown below in its entirety, and is reprinted with permission from the Washington Association of REALTORS. This article is not legal advice. You should always consult your own real estate attorney, REALTOR or tax specialist.

Myth Number 4: The buyer's financing contingency expired.

The truth is, using the statewide financing contingency, form 22A, the buyer’s financing contingency never, never, never expires. The only way the seller can make the financing contingency go away prior to closing is for seller to force buyer to waive the financing contingency. After the number of days established in paragraph 2 of the contingency addendum elapse, seller can give buyer a “notice of termination” (form 22AR). If seller never gives that notice of termination, buyer’s financing contingency never expires. If seller gives the notice of termination, buyer has three days to either waive the financing contingency and proceed to closing or allow the purchase agreement to terminate and recover buyer’s earnest money. Seller can give the notice of termination any time after the number of days specified in paragraph 2 elapse, regardless of whether buyer provides the required letter of loan commitment and notwithstanding the quality of buyer’s letter of loan commitment. But, if seller never forces buyer to waive the financing contingency, then the financing contingency will be in place, protecting buyer, even at the closing table.

Keep the above in mind as your sale goes through the closing process. For more myths and realities about the homeselling process, see our Real Estate Mumbo Jumbo page.

FREE Pollution Liability Insurance?

noreply@blogger.com (MLS4owners) — Tue, 03 Mar 2009 21:21:00 +0000

Do you have a have a home with oil heat, with an underground or aboveground storage tank? The Washington State Pollution Liability Insurance Agency offers free pollution liability insurance to owners of oil tanks used to heat their home and businesses. According the State of Washington, this insurance is free to the owner because it is partially funded by a fee dealers pay per gallon of oil they sell.

The Agency has more information on its website or by phone at 800-822-3905.

The $35,000 mistake - Why you should review your title report.

noreply@blogger.com (MLS4owners) — Mon, 23 Feb 2009 19:22:00 +0000

You hire a broker to represent you in the sale of your house, and eventually you get an offer you can live with. The buyers are ready, willing and able to close the deal. Sounds great, right?

Well, not if your driveway encroaches on the neighbor's property and you can't deliver clear marketable title to your buyer. A Mississippi court recently ruled that the seller owed more than $35,000 to their listing broker because the seller was unable to perform even though the broker bought them a ready, willing and able buyer.

This is an example of why we recommend eliminating surprises by ordering your preliminary title report upfront.

While we don't know whether this particular boundary dispute would have been discovered without a survey, there are other surprises that sometimes show up in title searches. For example, do you have the same name as somebody who owes money to the state? Are there old liens on your property that should have been released but are still in the records? By fixing defects in title ahead of time, you can save yourself a lot of time and money during the closing process. And who knows, you just might save $35,000.

Thanks to Realtor.org for alerting its members about this important topic. Talk to your real estate attorney to learn more.

Puget Sound Real Estate Sales - Mixed results so far in 2009

noreply@blogger.com (MLS4owners) — Fri, 13 Feb 2009 19:04:00 +0000

The good news for home sellers is there were more sales in January than there were in December, and inventory is down a little from a year ago. The sales results are not surprising, as there are always more sales in January than December. The bad news for the month is there were fewer reported pending sales this year than in any January of this decade, for King, Pierce, Snohomish and Kitsap counties.

Analysis of results is published monthly by the Northwest Multiple Listing Service and continually linked in the Real Estate News section of the MLS4owners.com website. If you need information about market activity in your neighborhood, let us know and we would be glad to help.

Signs, signs, everywhere a sign

noreply@blogger.com (MLS4owners) — Thu, 29 Jan 2009 18:40:00 +0000

When ordering extra signage from us, it is important to be aware of your local sign ordinances and practices. While each community is different, here are a few links that may help:

Summary Chart of 2008 ordinances: from the REALTOR associations of Seattle-King County, Tacoma-Pierce County, and Snohomish County-Camano. You can check for updates on this matrix by visiting NWRealtor.com and clicking on the Tri City Sign-Code Matrix.

City of Redmond Sign Ordinance: from Redmond Neighborhood blog

The City of Bothell also sent out a notice on January 26, 2009 requesting compliance with its ordinance, which according to the Northwest Multiple Listing Service states:

Up to four off-premise open house signs may be used.
Signs may be place in the public right-of-way (off the roadway) except where landscaped with anything other than a lawn.
Signs may not be placed in an intersection or traffic island at any time.
These signs may be placed where they do not block pedestrian, bicycle or handicapped access.
Signs may be posted only during daylight hours when the agent or property owner is in attendance at the property.
Directions/stake signs are not allowed.

For more information on sign ordinances in your city, please contact your local government office.

New Website for MLS4owners.com - Announcing Self Service Realty

noreply@blogger.com (MLS4owners) — Thu, 22 Jan 2009 20:12:00 +0000

This week MLS4owners.com’s new website debuts. The address hasn’t changed, but the design has been changed to provide more information than ever for sellers who are using Self Service Realty from MLS4owners.com. With Self Service Realty, MLSowners.com enables YOU – the seller – to be in control, while giving you access to all the essential tools of a listing agent. We provide massive advertising exposure, and we enable you to research and understand the market so you can complete your sale efficiently and cost-effectively. Among the new website features you will find are:

- Seller Contact information embedded in the marketing remarks of our customers’ listings
- Improved and indexed Questions and Answers
- Easy online payment system

Take a look around the new site and please let us know what you think. There is a short survey you can click on at Questions & Answers / Contact Us.

New Septic Inspection Rules for King County

noreply@blogger.com (MLS4owners) — Tue, 20 Jan 2009 22:04:00 +0000

Thanks to our friends at the Northwest Multiple Listing Service for alerting us to this new rule that went into effect on January 19, 2009. In King County, the seller of any single or multi-family residential property served by an on-site septic system is now required to have a monitoring and performance inspection prior to transfer of title. King County will require the inspection and report to be completed by a King County licensed On-Site System Maintainer (OSM). A copy of the inspection report must be submitted to the Health Department and the buyer prior to transfer of title.

To obtain more information, including a copy of the inspection form and a list of licensed OSMs, visit King County's website.

REALTOR® Association appoints MLS4owners.com broker to its Board of Directors

noreply@blogger.com (MLS4owners) — Sat, 03 Jan 2009 00:39:00 +0000

We are always trying to make the voice of our customers heard, so this is good news.

Chris Nye, founder and President of MLS4owners.com, has been appointed to the Board of Directors of the Seattle-King County Association of REALTORS®. “Chris brings a valuable perspective to the board with his business experience and vast amount of work with state and federal government on anti-trust and consumer issues,” says the Board’s President Keith Nelson. “We look forward to his expertise and input.”

The Seattle-King County Association of REALTORS®, with 8,000-plus members, is a local board of the National Association of REALTORS® (NAR). Its members participate in matters at all levels of government that affect private property rights, housing supplies, affordability and homeownership opportunities. Membership is voluntary, and only members may use the term REALTOR®, which is a licensed collective trademark.

Over the years Chris has also served the Washington State Department of Licensing Task Force 18.85, which was reviewing and updating the 70 year-old law of real estate licensing; on US Congressman Adam Smith’s Technology Advisory Council; and on the Northwest Multiple Listing Service By-Laws Committee. He and Ken Whitney also participated as stakeholders in recent Washington's Office of Insurance Commissioner hearings on Title Insurance regulation.

We will continue to look for opportunities to participate in political processes that could affect the industry and our customers.

MLS4owners.com releases new study of customer results

noreply@blogger.com (MLS4owners) — Mon, 08 Dec 2008 18:39:00 +0000

In addition to the statistics we continually update on our site, we also conduct periodic studies of the results of individual homesellers. In December 2008 we looked back at what subsequently happened to properties that had canceled their listings in the six months ending December 31, 2007.

Of the 225 properties on which listings expired or were canceled, 137 left in order to be represented by an agent, and 73 of them eventually closed sales. On average sellers had to reduce their price by $72,000 (11%) from their last asking price in order to complete the sale, and were on the market an additional 120 days. They also paid a commission to their listing agent.

Of the 73 that have sold, only 2 sold at or above their MLS4owners.com asking price. Both of them switched to an agent early on, within 45 days of activation, and one of them had been offering a 1.4% commission. Of course there are good reasons for wanting representation, especially when one’s circumstances have changed. However, our 2008 study had similar results to our 2002, 2003 and 2005 studies which showed that if a home is priced right for its condition and location, and given the MLS4owners.com exposure that meets or exceeds full service exposure, it will sell!

Visit our website for more information on this study and our customers' results.

MLS4owners.com wins one in federal antitrust case

noreply@blogger.com (MLS4owners) — Mon, 27 Oct 2008 22:31:00 +0000

When it comes to freedom of choice in real estate, MLS4owners.com is an advocate for consumers. Unless they are running for office, not many people monitor activities of federal, state and local governments. We try to keep on top of these things because they are important not only to us, but also to homeowners.

MLS4owners.com was the only Washington company to file a public comment on the recent proposed settlement in United States of America v. National Association of REALTORS®, and last week our work paid off.

The Department of Justice has for years been investigating NAR policies that DOJ considers anti-competitive, and in 2005 it filed a lawsuit regarding NAR’s Virtual Office Website (VOW) policy.

The way DOJ understands it, “VOWs are password protected websites through which brokers provide brokerage services to customers or clients, including the opportunity to search MLS listings and other information. NAR’s “Internet Data Exchange” or “IDX” rules govern websites operated by brokers though which they can advertise listings to consumers with whom the broker has not yet established a customer or client relationship.”

IDX policies allow listings of all brokers to display on other brokers’ websites. For example, in the Northwest Multiple Listing Service (NWMLS) brokers have a choice on their websites – they can display the listings of either ALL other brokers or NO other brokers. They are not permitted to publicly display Broker A’s listings while rejecting Broker B’s listings. As most brokers prefer to have as much content as possible on their websites in hopes of earning commissions by representing buyers, they tend to display the listings of all brokers. As a result, the local websites of MLS4owners.com, Windermere, John L Scott, Coldwell Banker, Prudential, RE/MAX (and many others) display the listings of all NWMLS members. While this has been very successful in Washington, NAR would like to allow brokers to selectively ban website display for the listings of some brokers. This would obviously be bad for the owners of those homes, as well as for buyers who thought they were seeing all available properties but were in fact seeing only a portion.

On May 27, 2008 a proposed lawsuit settlement was announced in USA v. NAR, based on recent amendments to NAR’s VOW policy. The settlement also included the statement, “the United States does not allege that Defendant’s Internet Data Exchange (IDX) Policy in its current form violates the antitrust laws.” NAR took this statement and ran with it, claiming that “the proposed final order validates NAR’s longstanding Internet Data Exchange (IDX) policy.”

We knew the reality to be different, and we urged DOJ to clarify its position. We pointed out that the IDX Policy was NOT the subject of the DOJ’s pre-complaint investigation, complaint, amended complaint or discovery, and that three was no basis for NAR’s statements. We asked DOJ to go back to the table and renegotiate the language to be more consistent with its stated goal – “The United States brings this action to enjoin the defendant a national association of real estate brokers—from maintaining or enforcing policies that restrain competition from brokers who use the Internet to more efficiently and cost effectively serve home sellers and buyers, and from adopting other related anticompetitive rules.” We also asked that steps be taken to ensure NAR’s compliance with DOJ’s public pronouncement that “NAR will enact a new policy that guarantees that Internet-based brokerage companies will not be treated differently than traditional brokers.”

While DOJ understandably does not want to void the settlement before it even gets through the court system, they responded to our concerns by telling the judge that “The United States takes no position as to the permissibility under the antitrust laws of NAR’s IDX Policy.” This will be part of the federal record, and should prevent NAR from feeling it has a free pass to limit consumer options when they choose what type of real estate brokerage to use when marketing their homes. As Chicago attorney Michael Erdman pointed out on Inman News on October 23, 2008, “it was crystal clear that [DOJ] is not taking a position on whether the IDX policy, as written or applied, is fully compliant with federal antitrust laws.”

We are members of the National Association of REALTORS® and we appreciate many things our organization does. However, we will not hesitate to speak up when we see creeping anti-competitive behavior that would hurt our customers.

Is your home a bargain?

noreply@blogger.com (MLS4owners) — Sat, 11 Oct 2008 04:08:00 +0000

John Gillie of The News Tribune is doing a story about the relative bargains that are now available on the market, and he is looking for homes and ideas.

Some of the examples he gives are "it's priced substantially below what the neighbors paid for their homes, it's 60 percent of last year's asking price, it comes with a free cruise on the Amazon or the owner is willing to finance with zero down."

Does your house fit one of these categories? Or is your house a bargain because you are saving so much in listing commissions? If you think your house would be part of a good story for John, let him know. Click the link in the first line of this post, or email him at The News Tribune.

Competition helps consumers

noreply@blogger.com (MLS4owners) — Fri, 10 Oct 2008 16:18:00 +0000

The Antitrust Division of the Department of Justice has an interesting website about Competition and Real Estate. It does a good job of explaining some of the options available to homesellers, and also helps debunk many myths we have encountered.

What should I do if my home is not selling?

noreply@blogger.com (MLS4owners) — Thu, 02 Oct 2008 20:42:00 +0000

When sellers ask us what more they can do to get their home sold, we recommend the 3 P’s – Pricing, Presentation and Patience.

Make sure your price is competitive compared to others in your neighborhood (it also helps if your commission is competitive). The home should be presented well, clean and uncluttered inside and out. Consider whether your photos give the best representation of your property. Finally, have patience. In 2008 inventory has been higher than normal and sales have been lower than normal, and average selling times have climbed from the go-go days of 2003-2006. Your home is exposed on a 24/7 basis to all NWMLS agents and more than 100 websites including the most popular local real estate sites, so buyers can find you if they are interested. Certainly any additional advertising you do on your own can’t hurt, but you may find that it does not add much to the power of the advertising you are already doing through us and the multiple listing service.

The market is tough right now, but sellers who practice The Three P’s find they get better results. Here is a letter we received yesterday:

“Thank you MLS4owners.com for excellent service. This was a positive experience for my husband and I who are first time home sellers. The staff was quick to respond to our questions and provided every thing that the web site promised. We chose MLS4owners as a marketing tool to help us sell my home quickly and it worked! When the ARM on our mortgage reset, we were unable to refinance. We noticed homes were taking months to sell and we could not afford to wait. Because we saved 3% in agent fees it allowed us to list the home slightly below market value (I listed for $10,000 less than comparable homes in the area). This brought buyers looking for deals. We made sure the house was clean, staged, and in good repair. We were careful and made sure the buyers were pre-qualified. Also, we hired a real estate attorney to help with the paperwork. We got two offers with in a week and closed the next month. What a great tool to help sell a property quickly in this terrible market! Kudos to MLS4owners.com!”

We’d like to take the kudos, but this seller was successful because they had ownership of the process and took advantage of the tools available to them. They concentrated on price and presentation, and were fortunate that they didn't have to be patient.

More ideas and customer stories are available on our website. Good luck with your sale!