Real Estate Questions & Answers

January 07, 2009

California Real Estate : Questions & Answers

Should I Put My Home on the MLS?
You recently decided to sell your home but you're not sure if you should spend the money to put it on the Multiple Listing Service? Lets look at what the MLS really is and the Pro's and Con's of listing your house on through a Realtor.

The MLS is a huge database of every house that is trying to sell in your area and it's funded by the Realtor Association in your county. The idea is centrallizing information, all t

he Realtors in your area know where to go to find a four bedroom house under your price range by logging into the local MLS website and searching for it. To get on that MLS search you typically need to sign a contract with a Realtor that varies in prices sorting from low flat fee listings to commission splits. The most common split is 50/50; half goes to the agent representing the buyer and the other half goes to the agent who is representing you.

If you do decide to go with an Agent remember that everything is negotiable, including their commissions. There is no minimum fee you have to pay to get your home on the MLS, but the agent might personally have a minimum before they will put it on the MLS, so beware of this while negotiating. Also, it is important to price your house right for database reasons. If you price your home at $499,999 all Realtors searching for homes between $400K - $500K will find your home at the bottom of the list as the most expensive home of all the options. Conversly, when a Realtor searches for a home between $500K - $600K instead of coming up as the top option it doesn't come up at all because you are priced below the minimum. That's why you need to analyze your home's potential and find out where you want to compete, do you want to compete with homes more or less expensive than yours? Price accordingly.

The main Con to putting your house on the MLS is the expense involved. Some people will pay 6% or more of their house's value in Realtor fees. Also, many homes placed on the MLS will have a lockbox option where you're home could be shown by Realtor's through the day and although you should always keep a tidy house when you are trying to sell it, it is paramount when you have a lockbox on the door. You don't want to scare away potential buyers because you couldn't clean that week.

One of the great Pro's to putting your house on the MLS is exposure. It's hard to compare to the MLS when it comes to the volume of traffic coming through the site. Even the most well placed newspaper advertisements have a hard time competing with the MLS. Also, you are advertising to the right demographic, you are telling everyone that is specifically looking for a home that your home is for sale. The majority of homes are sold this way. It's important to weigh all the variables and it's important to know your market conditions before taking a step that can lock you into a contract.

California Real Estate Markets:
Los Angeles real estate, CA , San Diego real estate, CA , San Jose real estate, CA , San Francisco real estate, CA , Long Beach real estate, CA , Fresno real estate, CA , Sacramento real estate, CA , Oakland real estate, CA , Santa Ana real estate, CA , Anaheim real estate, CA , Riverside real estate, CA , Bakersfield real estate, CA , Stockton real estate, CA , Central Coast real estate, CA , Fremont real estate, CA

*Estimated values are based off of a six month approximation, it bears no expressed or implicit warrant or guarantee of value.
All values are estimated and it is the responsibility of the buyer to determine value.