With so many resources online how does an investor effectively use them without getting bogged down or winding upward with incomplete or bad information? Surprisingly, understanding how the business of real estate works offline makes it simpler to understand online real estate information and strategies.
Real estate is typically bought and sold through a accredited real estate agent or directly by the owner. The great majority is bought and sold through real estate agents. (We use “agent” and “broker” to recommend to the same professional. ) Due to the fact their real estate experience and knowledge and, at least historically, their exclusive access to a repository of active properties for sale. Access to this database of property entries provided the most effective way to look for properties.
The database of residential, land, and smaller income producing properties (including some commercial properties) is usually referred to as a multiple listing service (MLS). In most cases, only properties posted by member real estate providers can be added to an MLS. The principal goal of an MLS is to allow the associate real estate agents to make offers of compensation to other member providers if they find a buyer for a property.
This purposes did not include enabling the direct publishing of the LOCAL MLS information to people; times change. Today, most MULTIPLE LISTING SERVICE information is directly accessible to the public on the internet in many different types.
Commercial property listings are also displayed online but aggregated commercial property information is more elusive. Larger MLSs often operate a commercial information exchange (CIE). A new CIE is similar to an LOCAL MLS but the agents adding the listings to the database are not required to offer any specific form of compensation to the other members. Compensation is agreed outside the CIE.
Within most cases, for-sale-by-owner properties can not be directly added to an MLS and CIE, which are typically taken care of by REALTOR associations. The lack of a managed centralized database can make these properties more difficult to locate. Traditionally, these properties are found by driving around or looking for advertisements in the local newspaper’s real estate meetmyagent listings. A more successful way to locate for-sale-by-owner properties is to search for a for-sale-by-owner Web site in the geographic area.
What is a REALTOR? Sometimes the conditions real estate agent and REALTOR are being used interchangeably; yet , they are not the same. AN AGENT is a accredited agent who is also a member of the NATIONAL ASSOCIATION OF REALTORS. REALTORS are required to comply with a strict code of integrity and conduct.
MLS and CIE property listing information was historically only available in hard copy, and as we mentioned, only directly available to real estate agents members of an LOCAL MLS or CIE. About ten years ago, this valuable property information started to drip out to the Internet. This trickle is now a flood!
One reason is that the majority of the 1 million or so REALTORS have Web sites, and the majority of those Web sites have varying amounts of the local LOCAL MLS or CIE property information displayed on them. One more reason is that there are many non-real estate agent Websites that also offer real estate information, including, for-sale-by-owner sites, foreclosure sites, regional and international listing sites, County assessor sites, and valuation and market information sites. The particular flood of real house information to the Internet definitely the actual information more accessible but also more confusing and subject to misunderstanding and misuse.Read More