Yes, you heard me correct the MLS (multiple listing service) does not sell homes! So what is the MLS anyways? Well the definition according to Wikipedia is as follows:
"A multiple listing service (MLS, also multiple listing system or multiple listings service) is a suite of services that enables real estate brokers to establish contractual offers of compensation (among brokers), facilitates cooperation with other broker participants, accumulates and disseminates information to enable appraisals, and is a facility for the orderly correlation and dissemination of listing information to better serve broker's clients, customers and the public"
Did you get that? Basically, the MLS was put into place for real estate professionals to communicate and offer compensation with one another and to offer listing information, eventhough the information is not deemed reliable and accurate, in most areas.
Ok, lets get back to my real argument that the MLS does not sell homes. I communicate with a lot of For Sale By Owners and some sellers elect to list their home in the MLS with a discount or limited service agency. These types of sellers make 2 fatal mistakes in my opinion:
1) The compensation to the selling agent is usually discounted, which can limit the amount of showings.
2) They do not set the right PRICE.
Lets focus on the Price argument. (But, to set the record straight, I respect all types of real estate business models and in no way discrediting the serivce that discount or limited listing programs provide.) Here is the MAJOR problem, the MAJORITY of these alternative companies do not educate the seller about proper pricing and market statistics. Basically, anyone with $200.00 or more and a dream can list their home in the MLS with one of these services and will never be challenged on the price they set. Now, the same can be said for full service agents, as many agents never discuss market data with their client, they just let the seller set the price. Amazing but true.
So, the MLS does not sell homes, the market sells homes, only when a competent real estate professional has guided their client on how to properly position their home in the market with the proper marketing and PRICE.
Do not get me wrong, the MLS is needed to communicate the commission structure, interpret market statistics and other pertinent information, and syndicate listings through the Internet and IDX platforms. Therefore, the MLS is a valuable tool, but can never replace the interaction between the consumer and the client. People need people to communicate to, they need to be coached and guided to make the right decision. They need the right agents to help them determine the right price. If they did not need these things, then every seller would list their home with a limited service company, right?
Be the expert. Educate clients as to why they need you, beyond the MLS. Be the EXPERT with regards to market data and statistics. Many sellers think they are the experts on pricing and they know how to market a property. This is farther from the truth. But you need to show PROOF. People believe what they see, not what they hear. And this is something that many below average agents and limited service companies can not offer.
You can reach me at 315-882-6610 or visit my website at www.CNYAgent.com
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