About Brenda Savage
Brenda Savage is a Real Estate Broker and Instructor licensed in the State of Arizona. She has been active in the real estate industry since 1988, and has been a Real Estate Instructor since 1999.
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The Value of the Multiple Listing System
For decades, REALTORS® have used the MLS (Multiple Listing System) to effectively market residential homes across the country. Why? Because it works! The entire residential real estate industry is based on cooperation between Brokerages. The MLS System exposes your property to all perspective buyers. whether they are local or across the country. By exposing your property to all perspective buyers, the potential for a higher sales price is increased dramatically. Through MLS, properties are made available to other REALTORS® with qualified buyers, as well as to un-represented buyers who are perusing the Internet on the thousands of websites that feature MLS listings. In a hot real estate market, the value of marketing your property on MLS is undeniable.
As we experience a Seller's Market locally (the likes of which we've never seen before), some Sellers are choosing to list their property on an "Exclusive" basis. An "Exclusive" or "Office Exclusive" listing may seem to be a less costly marketing choice, however, simple economics dictates the opposite. An "Exclusive" or "Office Exclusive" listing means that the property will not be offered on the MLS, and no co-broke compensation is offered (thus the perception of saved expenses on the sale of the property). So, REALTORS® from other firms with qualified buyers will not be aware that the property is on the market. Buyers from other parts of the state or country will probably not be aware that the property is available. In most cases, only those people that drive by the sign or see an ad in a local newspaper will become aware of the property. Some firms will argue that they have a website that is accessible from anywhere in the world. The problem is that someone sitting in Chicago or Tallahassee may have no idea how to find that company's website, or that it even exists! The largest real estate website in the country is www.realtor.com, the National Association of REALTORS® website. Only properties listed in local Multiple Listing Services and then provided to realtor.com by individual Brokerages can be listed on this site. If you are in an "Exclusive" or "Office Exclusive" listing, your property will not be listed on this dynamic tool.
In a market like ours, Sellers are enjoying some of the highest appreciation ever experienced. However, by not fully exposing the property to all potential buyers, sellers could be costing themselves thousands (or in some cases tens of thousands) of dollars. Recently, a local seller listed their property for sale. It sold very quickly. The new buyer planned on renovating and re-selling the property, but, based on the extensive and up-to-the-minute market knowledge of his REALTOR®, decided to list the property on MLS immediately. The property sold within days for $50,000 more than the previous Seller had it listed for. Current market knowledge is crucial in choosing your real estate agent, because if they don't follow our market on a daily basis, how can they maximize your selling price?
Imagine this: I have a widget to sell. I put up a sign in my front yard and an ad in the local paper that says "Widget for Sale". My friend has a widget as well, but he puts it on eBay®. Within 1 hour, 3 people have driven past my widget sign, and my ad won't be out for several days. Meanwhile, 700 people have looked at my friend's widget on eBay®. By the way, these people are specifically looking to buy a widget, not just taking a drive to the store or looking for coupons in the paper. As there is only one widget like his, a bidding war ensues. I wait for an offer. Who's widget do you think will sell faster and for more money?
Buyers need representation as well, perhaps now more than ever. With multiple offers being commonplace in this market, buyers must be fully informed on recent sales, market value, and how to best present themselves as they make an offer to buy a property. A REALTOR'S® value cannot be underestimated when it comes to your largest personal asset. Whether you are buying or selling, choosing your real estate professional is the most important decision you will make.
REALTORS® have used the Multiple Listing Service for decades because it works. It helps Buyers to find exactly what they are looking for, and it helps Sellers effectively market their property to all perspective Buyers.