Should a Seller list their home on the MLS with their Realtor or sell the home by owner? What does MLS mean? Well some believe it means Multiple Listing Service used by professional real estate brokers and agents and it surely does. What does MLS really mean to you the Seller? Well, MLS means "More Lucrative Sale" at the true market value of course.
MLS will actually means "More Lucrative Sale" of your home at True Market Value
When a Seller lists their home with a professional on the MLS it is intantly made available to thousands of qualified buyers (not Lookey Loos and Nosy Neighbors) in the local market and around the world. These Buyers are also represented by professional real estate agents that bring a qualified (cash or loan) Buyer to see the home. Having many Buyers that are qualified to buy allows the home to sell at the true market price based on our free market society rules of "Supply and Demand"
What is Supply and Demand you may ask? "In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise....per Dictionary.com)
Therefore if you have many buyers seeing the home that are qualified to make a purchase, the price of that item (the home being sold) will rise.
For a Seller that believes they will save on a real estate commission by listing their home as "For Sale By Owner" will find they may save on a commission but fall far short in their Seller proceeds on the sale by selling the home at a much lower price than if there were many Buyers seeing the home. The more Buyers and qualified Buyers (important) will cause the price of the home to rise.
Think about it. A seller sticks a For Sale By Owner sign in front of their house and advertises it to avoid a commission. Who will see this ad. Well maybe some of the public or flippers. Both are looking for low ball purchases that they can move into or flip. Think about it. A Buyer does not pay a Real Estate agent usually. If they were going to buy a home, why would they go to a For Sale By Owner home other than trying to get a low ball offer. Separately, these low ball cash Buyers are trying to buy a home at the lowest possible price in order to do a fix and flip for a profit. The Buyer and not the Seller is going to ultimately reap the reward of selling at the true market price. Where will the cash Buyer sell the home after the fix up is complete? Well on the MLS of course for a More Lucrative Sale at the true market price.
Besides the benefits of a More Lucrative Sale on the MLS, the Seller's agent and the Buyer's agent are skilled and will write a professional contract to close quickly and smoothly. The Seller's agent will use the MLS and a lockbox to attract the qualfied Buyer with a lockbox showing. People seeing a Seller's home will be known taking the risk out of the transaction of unknown parties calling a For Sale By Owner to schedule a showing. Who are these people coming to the home? Are they legitimate, safe, do they have a prequalification for a loan? What do you really know about them as they check out the inside of your home? Not much.
A Buyer's agent that shows the home will have prequalified the Buyer or else they would be wasting their time. A Seller should want only qualified Buyers looking at the home and not nosy neighbors, lookey loos or buyers that are hoping to score a low ball offer or worse yet just ask the Seller to "carry the mortgage" until they work out of their financial difficuties. No No No, a Seller does not want that!
The solution to a More Lucrative Sale is to put the home on the MLS with your professional Realtor. Sell your home at the true market price using the principle of Suppy and Demand. Have as many qualified Buyers see the home as possible so the home sells at the true market price.
When you are ready to sell give me a call. I would be pleased to help you sell your home at the full market price and bring you qualified Buyers that are ready to purchase now. Visit me at Sell My Home in Arizona.
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If you are looking to move to Phoenix including Scottsdale or to buy a home in Arizona or sell a home in Arizona, contact Jeffrey Masich, Associate Broker and Realtor. I would be pleased to help you and look out for your best interests while finding you the right home at the right price!
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