Home Builders Can Teach Home Sellers An Important Lesson About The Realtor MLS

Realtor MLSSmart home sellers can learn an important lesson from home builders about the Realtor MLS.

Where most home sellers are “amatuers,” home builders are professional sellers. They are in the business of creating and then selling a home for a profit, and the Realtor MLS is part of their marketing plan.

I can tell you that anybody who has been building for several years, or anybody who has been a real estate broker for several years, will tell you that builders and Realtors compete for the same dollar.

There is a “soft cost” for building and selling a home, and builders want to keep every dollar possible. They will not pay for something without gaining something valuable in return.

When times are good and the apparent need for a Realtor seems diminished due to voluminous buyer activity, builders want to cut the Realtor fee from his costs. Of course, in times like we are having now, the opposite is true.

In a previous post, I shared 7 Tips To Help You Avoid Choosing The Wrong Home Selling Plan, and the message today could very easily be the 8th tip.

Home Builders And The Realtor MLS

There are really three different types (or levels) of home builders in Tallahassee when it comes to how they market a home for sale:

Volume Builder – The largest builders have their own sales staff and the construction company is part of the Realtor MLS. These builders know that they can market to every Realtor in town just by having their homes listed for sale in the Tallahassee MLS.

Small Builder – The small builder does not build enough homes to warrant a full time sales force, but they build enough that they send a lot of business to a real estate agent who has some experience in new home sales. They often receive a heavy discount from the Realtor who puts the homes in the Realtor MLS based on the fact that they sell a lot of homes together.

Builder / Realtor – The Builder/Realtor has both a construction license and a real estate license, and they “save” money by not having to hire a real estate agent to put their homes in the Realtor MLS.

Learn TheĀ Realtor MLS Lesson From Home Builders

All three marketing methods above have something in common … and that is an understanding that the home should be listed in the Realtor MLS. Both the volume builder and the builder/realtor understand that most real estate listing agents don’t do much more than put a home in the Realtor MLS, so they have joined the board to save the cost of hiring a Realtor.

The small builder understands this as well, and that is why this builder demands a discount for the services rendered by the real estate agent in the Realtor MLS.

In all three cases, the professional home seller places very little value on the real estate agent, knowing the bulk of their efforts will be listing the property in the Realtor MLS. This is the lesson you should learn from builders!

The typical real estate agent is merely your conduit from “unlisted” to “listed” in the Realtor MLS. We know that this results in a home sale less than half the time a property is listed, so if you are just working with a friend or somebody that you think is pleasant, you should demand a deep discount as well.

If you want to see the difference between what 99% of real estate agents can offer you with the Realtor MLS, and what a top-end, hard working real estate company will provide, then just drop me a note and I will set up a time to demonstrate our Targeted Internet Home Selling Plan.

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23 September 2013
Joe Manausa
Century 21
Last modified: September 23, 2013
About Joe Manausa

Joe Manausa, MBA is a 22+ year veteran of real estate brokerage in the State of Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

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