Selling by Owner 101

You can go to this link and research the last sales on your street or any street in NY.

This database contains information about the real estate transactions that occurred in New York state since 1993. Data for Monroe County is supplied by the Monroe County Clerk’s office and is updated weekly. Data for other counties is obtained from the New York State Office of Real Property Services and is updated quarterly.

http://rocdocs.democratandchronicle.com/database/real-estate-database

Posted by www.list2move.com

http://www.realtor.com/home-values/

ARE YOU SURE?

America’s Choice (2.5% Real Estate Direct) 10/26/2009 stated on their website that Flat Fee MLS doesn’t work so lets check it out using their best case scenario…..

Let’s compare their YTD vs. the Rochester List2Move (Roxwell Properties, Inc.) to see if there is any truth here and we will use the best case scenario, which is where there is no other company  involved in the sale.

Our guess, even before crunching the numbers is they are blowing smoke for the simple reason of getting more of your money!

SIMPLE MATH*

YTD 2.5% Real Estate Direct has generated 10 sales where the buyer has come directly to them so…

10 sellers paid $495 each to get on the program and 1% of the selling price of the YTD total $1,456,200 to the 2.5% Real Estate Direct brokerage or a total of…..  $19,512 out of the sellers pockets ($1951.20 each)

List2Move had 6 sales where the buyer has come directly to them so…since they pass the buyer directly to the seller, the sellers all saved that additional 1% in commissions!

6 sellers paid $495 each to get on the program and 0% of the selling price of the YTD total of 1,255,500 to List2Move or a total of $2970. ($495 each)

If you run with just the 2.5% Real Estate Direct numbers sellers would pay on average $1456.20 more than  they would have with List2Move to sell!

The Results

Conclusion: Flat Fee MLS does work!  These figures were based on America’s Choice’s and 2.5% Real Estate Direct’s best case scenario.  The only reason they are attacking the Flat Fee MLS business model is that it is hurting them financially! When you take into consideration the number of listings by each company YTD (2.5% Real Estate Direct 160 listings YTD and List2Move 49 you can see that only 1 in 16 (6%) listings sold with AC/2.5% best case and 1 in 8 (13%)with List2Move.com.   The numbers tell the story.

List2Move.com has received the Greater Rochester Association of REALTOR Sales Master Gold Award for the last two years and is going to be receiving another this November, not because “Flat Fee MLS doesn’t work!

The Smoke

Traditional real estate is most certainly under attack by the Flat Fee Monster and they don’t like it, as sellers from all over the country are tapping the MLS which is putting a hurt on real estate commissions everywhere.

Since there is big money involved companies in an effort to survive are using all they have left to compete with… smoke.

America’s Choice and 2.5% Real Estate Direct are not immune to this even though they are considered discounters. They still are surviving on the commissions where most flat fee companies don’t, so they are still in a way, traditionalists. Steve Levitt, author of Freakonomics predicted in 2006 that Flat Fee discounters would be the “death blow to traditional real estate.”

Traditionalists believe that if they confuse the customer it will put money in their pocket.  The problem is when the consumers figure it out, and they will, it comes back on the creditability of the company/agent.

Competitive take

This kind of competition is good, not necessarily when it confuses the customer, but when it forces other competitors to bring the truth to the surface like we have.  Ultimately consumers will be the judge and when anyone tries to mislead them on what is best for them it will have an equal and opposite reaction.

We believe this attack on flat fee is directly related to us advertising our services starting in October 2009.  So we want to thank our competitor for the complement

*Figures: Taken directly from the GRAR MLS, Reports 11/7/2009

If you are looking for assessment information check out this link below.

http://www.orps.state.ny.us/MuniPro/

As of today, there are there are a total of 87 single family houses sold and closed.  Last year to date there were 240 sold and closed.

As of today, the average time on the market market was 23 days,  compared to last year at 38 days.

As of today, the average square footage sold is 2113 vs. last year at 2082

As of today, the average list price of the sold properties is $220,724 compared to last year at $225,038

As of today, the average selling price is $213,683 compared to last year at $218,929

As of this year the highest price paid is $535,000 vs. last year at $775,000

There are currently 197 properties for sale in the town of Perinton.  These properties range from $104,900 to $725,000.  The average time on the market is as of today 65 days.  The average square feet is 2499 with $275,484 as the average asking price.

There are 90 single families currently under contract ranging from $74,900 to $599,000 in list price.  The average list price is $227,446.  The average square feet is 2082.  The average days on market range from 1 day to 253 days, with the average being 38 days as of today.  $300,000 plus priced houses averaged 33.91 days on the market.

There were 43 properties withdrawn from January 2008 to July 1, 2008  with the average asking price of $243,176.  These properties were on the market for an average of 74 days and averaged 2167 square feet.

Currently there have been 33 properties withdrawn from the market this year, with the average asking price of $295,584 at an average of 2640 square feet.

As of today, there are 46 lake front properties for sale on Canandaigua Lake ranging from $3,750,000 down to $199,000.

Only two properties have sold since January 1, 2009.  Five properties are under contract but that is no match compared to last year.  This time last year there were 16 lake front properties that had closed/sold on Canandaigua lake.

Lockbox Caper - Combo Boxes Lead to Home Invasion in Detroit ~
Click here to watch the video

WXYZ, Channel 7 in Detroit, reported on 10/17/2008 that two women allegedly broke into listed properties using lockbox codes.  One of the women worked for an appointment setting service, and used her access to the codes to get into the lockboxes.  The two women allegedly stole thousands of dollars worth of merchandise from several homes before getting caught.

In tough economic times, desperate people will increasingly exploit security vulnerabilities.  While we are proud to provide the most secure lockbox system available to you and your clients - one that is not susceptible to the vulnerabilities created by one-day codes and contractor codes - we also recognize the reality that boxes utilizing combinations are still occasionally used.  For those agents who do utilize combo boxes, we encourage you to change the codes frequently, for your safety and the safety of your clients.

The other option is an Electronic Lockbox where only Realtors can access your property and when they do the lock box electronically logs them in and out by name and date and times.  This is a big advantage.

Buyer’s brokers are beginning to compete on price by refunding a portion of their commission to the home buyers.  This was once illegal in New York State but that all changed in March of 2007.  Believe it or not it is still illegal in 11 states. 

Roxwell Properties, owner of www.list2move.com has begun to offer on average 50% of the commission back to buyers. 

What a great week for small town real estate investors.  If you think about it there was absolutely no panic in our “industry” this week, it just business as usual in the business of real estate. 

We watched as the world’s leading financial management and advisory companies literly melt down with AIG almost sending the world….that’s right…the world into a financial death spin as my rental property’s  sat quietly and earned a consistent 12%. 

Imagine the fright of all the AIG stock holders and the loses they personally incurred.  What degree of control did they have in the management of the company?  That’s right, none.  Think they saw it coming?  I don’t. 

The beauty of investing in real estate is the control you have over your investment.  In our portfolio we make the rules, not some overpaid wall street stuffed suit. 

I can’t stress it enough that if you don’t have real estate in your portfolio, you are missing the boat.  There are many avenues to consider when looking at real estate.   Start looking and kiss your stock market ulcers away. 

Prediction for small to medium town real estate investors:

• Large numbers of people will get out of the stock market and divest into real estate.  This means it will drive investment properties of all kinds higher.  This is going to be exciting, but mark my “guru” word, for now it has been written. 
• Also with the “RTC” (not sure what they are going to call it) being re-formed by the US Government just like the one 10 years ago to bail out the S&L (savings and loan crisis) banks will loosen up their loaning practices, but it will be still harder now to get a investment loan then 2 years ago.  So only people with serious net worth will be able to buy and finance these properties.  Good news for those of us who have been in the game for a while. 

We now know what is going to happen, now just get yourself positioned to benefit.  As Dr. Laura Slesinger would always say….”Now go take on the day”

Disclosure Breach

Dubuque, IA: (Mar-10-08) A lawsuit was filed against a Dubuque woman Rita Russow and her realtor Dominic Goodmann Real Estate, by a couple Chad and Michelle Miller who claimed they were not told of problems with a house they bought at 2801 Summer Drive, including the suicide of the previous owner’s husband.

The Millers who bought the Dubuque home for $136,000, claimed that structural problems, including leaky roof and the suicide of Rita Russow’s husband at the home in 1992 caused them to suffer damage and indicate they wouldn’t have made the purchase, had they known about the issues. The couple also claimed in part that they were haunted by her husband’s suicide.

The lawsuit, claimed negligence, misrepresentation, equitable fraud, recission and statutory nondisclosure and sued Russow for breach of contract. Rita, 65 years old, says she was forced to file for bankruptcy to save herself financially from the lawsuit. The settlement was reached with her real estate agent and co-defendant Dominic Goodmann Real Estate and dismissed last month. [IOWA WIRE: LAWSUIT OVER HOME'S HISTORY SETTLED]