HOUSEPAD listings scored a success rate 3.4 percentage points higher...
(Vocus/PRWEB) December 22, 2010
A study this month concludes that HOUSEPAD flat fee MLS listings posted a percentage sold rate slightly higher than the REALTOR average. Flat fee MLS listings involve sellers paying an upfront broker fee of $99 - $399 for a MLS listing instead of a listing broker commission at settlement. They are also known as MLS entry only listings, because the sellers largely self-manage the sale.
Searching sold and expired data 12 months back, the number of HOUSEPAD listings sold versus expired were calculated. The market continues to be a challenging one for sellers. In the largest MLS area of the country, MRIS, REALTORS across the board saw only 50.9% of year to date active listings sold. In the same MLS, Housepad listings scored a success rate 3.4 percentage points higher at 54.3% when the seller allowed 6 months and offered either 2.5% or 3% commission to the buyers agent.
The success rate varied by MLS market area, and was studied in HOUSEPAD's 30 highest volume multiple listing services. The following dataset represents the HOUSEPAD nationwide success rate relative to the commission rate that was offered to the buyer's agent.
3.0% - 50.7% (recommended)
2.5% - 57.5% (recommended)
2.0% - 46.6%
1.5% - 42.9%
1.0% - 26.2%
One surprising peculiarity here is that sellers who offered 2.5% to buyer's agents were marginally more successful than sellers who offered 3.0%. This may suggest that buyer's agents are increasingly willing to accept 2.5%, and if so these sellers have an extra 1/2% to make the deal.
HOUSEPAD sellers are free to unilaterally select their list price and co-broke commission rate, which is often not the case for full service listings. HOUSEPAD data was collected by HOUSEPAD. All data was analyzed by HOUSEPAD. This data does not include the Denver or Long Island market areas, where 2.8% and 2.0%, respectively, are the HOUSEPAD recommended commissions. This data does not include HOUSEPAD listings cancelled prior to 6 months, assuming most full service listings cannot be freely cancelled at anytime. This data assumes the average market listing contract is for 6 months with a co-broke offering of 2.5 - 3%. This data does not account for listing lengths or co-broke rates outside of that assumption. This data includes listings in both HOUSEPAD's Pay Upfront and Pay at Settlement program, where in the latter the success rate is lower.
About HOUSEPAD LLP: Since 2003, Ryan & Ken Gehris of HOUSEPAD have listed over 17,000 properties on multi-list (MLS) and Realtor.com. The company is licensed in 24 states, 80+ MLS’s, and specializes in listing property on behalf of for-sale-by-owners or real estate investors on a limited service, flat fee basis. The brokerage services for sellers are set up as a real estate equivalent to online stock trading.
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