Guess what percentage of homes were bought and sold through the MLS system last year – 2021?
The answer is confusing to most beginner real estate investors.
Some people are quick to answer 100%.
And the seasoned investors know that is – of course – wrong.
92% of properties sold in 2021 were sold using a traditional agent/broker relationship.
There are close to 600 separate MLS systems across the United States. Brokers and agents list their properties on the local MLS who in turn shares that data with other local and national online portals like Zillow and Trulia.
So what happens to the other 8% of properties? How are they bought and sold?
Similar to buying and selling a car – you don’t have to go to the dealership. You can buy and sell a car directly to another person and sign the paperwork in the driveway.
Buying a home isn’t quite that simple, but it’s pretty close.
Seasoned investors know that many of their best deal are “off-market” and bought and sold directly with a homeowner – bypassing the MLS, broker and agent relationships.
Have you heard of “For Sale By Owner” or FSBO properties?
Of course you have. Most of those sellers try to sell a house directly so they can avoid paying a commission.
Guess how that works out?
On average, FSBO’s sell for about $39,000 LESS than an agent listed property.
So how does this tie into the assignment over the last few days?
If you remember – I asked our WREIA members to send in examples of good news and bad news headlines.
The results were interesting. I’m going to share some more results tomorrow and save the best for our WREIA meeting – of course.
I hope you set aside a few moments and join us. It helps if you grab a reservation here.
The market is going to get tricky over the next couple of years – especially if you are new to real estate.
We will share the results and wrap up this whole series with our September WREIA meeting tomorrow, Monday at 7PM.
Join us Monday night.
The topic for WREIA this month is:
“The Good, The Bad and Reality”
Come join us online again this month!
My sole focus for the September 2022 WREIA meeting is:
Helping you make sense of real estate right now.
Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.
See you Monday!