Great news for real estate investors and non-investor home buyers and sellers alike! The Justice Department and the National Association of Realtors reached a major antitrust settlement recently that has a good chance of increasing competition and hopefully substanaially reducing sales commissions.
What the Settlement With Online Brokers Means To You
The settlement allows Internet brokers and real estate agents offering heavily discounted commissions to use the multiple listing services that are usually one of the best sources for connecting buyers and sellers.
Some local MLS boards had blocked or blacklisted online brokers because of their discounted fee offerings eating into the traditional real estate agent/broker commissions.
Internet brokers last year provided average rebates of 1 percent on commissions that normally ran 5 or 6 percent, translating into thousands of dollars per sale. But, now, as competition heats up among the online discount brokers, you may see much deeper discounts, which is nothing but good news for anyone trying to move properties profitably in today’s market.
The agreement between the Justice Department and the Realtors’ association has to be approved by a federal judge, probably this summer.
How DoesThe Settlement Create the Possibility That Online Brokers May Help YOUR Business?
How can you use this in your real estate investing business now? Simple, if you are not already using online brokers to get your properties extra exposure, you definitely should.
Beyond that, now that online brokers will be treated more like traditional brokers, using them becomes even more important in exposing your property to as many potential buyers as possible.
Using Online Brokers To Sell Your Properties
Do a Google search for “discount online broker listing” and investigate the results. You may want to try to narrow the search by including your city or state in the search.
Contact the top listings and see what the best rate you can negotiate for an MLS listing of your property is.
We found that we could list some of our investment properties for a flat fee of just a couple of hundred dollars.
By avoiding the listing agent’s listing fees in our listings, we can sell properties cheaper than our competition who may be using traditional listing agents and paying 2 to 3 percent for the privilege.
Using the Settlement With Online Brokers When Buying Properties
The settlement also may help you when you are buying properties or prospecting for potential acquisitions. If you use online brokers you can expect the savings enjoyed by the seller to be passed on to you.
Because they are not paying a listing side percentage, or paying a reduced one, they may be able to sell to you at a much more attractive price. It’s kind of like buying at wholesale, without the markup!
Put Online Brokers and the Benefit of the Settlement to Work For You Today – Step-By-Step
Get online now and find three to five discount brokers using the Google Search I mentioned earlier.
Call or e-mail them and get the details about what they offer in what areas and let them know what you are looking for OR do some searches in their database for properties that you think you may be interested in.
Begin a campaign for buying… the best way to do that the simplest is to follow our step-by-step post about using Realtor.com. Check it out and please post your feedback on how you are using these strategies successfully!
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