Real estate brokers can use the Multiple Listing Services (MLS) to share information about property listings. The idea is an old one and goes back to the late 1800s when local brokers got together to talk about available properties. Commissions were provided as incentives for assistance in finalizing particular sales. While in this instance, the hand means the property, the arrangement between real estate brokers became the outgrowth of that old saying about “one hand washing the other”.

“Unilateral offers of compensation” are a sign of cooperation between brokers, as the rate of commission becomes a known detail through the MLS. A commission rate can still be negotiated between the listing broker and the buyer’s broker even though the rate of commission is thought to be a contractual obligation.

A myriad of benefits are exclusively awarded to those brokers who take part in MLS systems. Because it is in everyone’s best interests (including the public) to update all included data, the system is therefore, by its very nature, accurately maintained. MLS data about available homes for sale is freely obtained by any and all subscribing brokers. MLS data fields are fully detailed regarding facts about all listed properties unlike public real estate websites that feature only restricted facts about properties for sale.

Although MLS is criticized for its limited elements, things are gradually opening up as more and more Internet sites are allowing homebuyers access to certain sections of MLS listings. It is still not a unrestricted access by any means, as only those real estate agents who are compensated proportionately to the value of the sale have limitless access to the MLS database.

The economic belief of supply and demand in addition to the significance of establishing a stable market are considerations for the debate concerning whether real estate listings should be accessible to all. Public websites are vindicated in their complaints that they are held back in their ability to assess comparable properties by the fact that they cannot access past sales and monthly statistics.

When, a homeowner, decides, it is time, for him, to sell his existing home, it may be, for any number, of possible reasons! Some are obvious, such as financial challenges, job relocation, changing personal needs, priorities, etc, while, other motivations, may be, more – personal, etc! Regardless, however, in my, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have learned, and strongly, believe, a primary, initial decision, which, often, has significant impacts, is the initial, listing price, when the house, originally, is, put – on – the – market, to sell. Basically, there are 5 basic strategies, for pricing, your home, for – sale. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, what these are, and, why, it matters.

1. High – end of range: Especially, in these times, where, we see, a combination of limited, available inventory, near – record – low mortgage interest rates, and a sellers – market, many homeowners, seem, to prefer, pricing their houses, at the higher end, of the range! In, some cases, this strategy, achieves its objectives, but, often, risks, houses, which don’t end – up, selling, Using this strategy, should, only, be considered, when the seller, is willing to take some risks (hoping for greater rewards), and isn’t under, time – pressure!

2. Middle, of the range: In most cases, the smartest approach, is, to price a house, in the middle of the range, suggested, by preparing, a professionally, designed/ created, Competitive Market Analysis (usually, referred to, as a, CMA). This, usually, creates, a strong – demand, by, qualified, potential buyers!

3. Lower third of range: There may be, several reasons, for this approach, to listing price! Usually, it creates, a significant demand, from qualified buyers, and, helping, to sell the house, for the best – price, in the shortest – period, with a minimum of hassle!

4. Pricing above the high point: During certain, real estate markets, such as the one, we have witnessed, for several months, currently, we often, witness, listing prices, set, above the higher – end, of the indicated range! When, prices, are rising, quickly, this may help getting more money, for one’s house, but, since most buyers, use a mortgage loan, to help finance/ pay – for, the home, doing this, risks, home appraisals, which don’t, perhaps, justify, the size of the desired loan!

5. Below lowest point: Setting an initial, listing price, below, market – levels, may be indicated, under certain circumstances/ conditions. This approach may be effective, when a seller wishes for a speedier sale, and, believes, creating, a so – called, bidding – war, may, make sense! It may also be a good approach, for marketing houses, with some, unusual circumstances, needs, goals, and priorities!

Whichever strategy/ approach, used, it is important to realize, there is a significant different, between, listing, and selling, prices! Will you be an educated, informed, smarter home – seller?

Commercial short sales, which work in much the same way as foreclosures, used to be a fairly unattractive prospect. While you could pick up a property fairly cheap, you would often then have to find somebody to help you fix it up and turn it into a commercial premises that could actually be used, which pushed the cost up.

However, the current property market has created a climate whereby banks and lenders are much more willing to work with potential buyers in an effort to get non-performing loans off their books and back in the hands of people who will be able to start paying them again. As such, with the proper research you should be able to pick up the property at less than the asking price at a short sale, assuming you follow these tips.

Know The Property

Don’t go into a short sale with no idea about what the property you’re interested in is all about. In many cases the bank won’t want to tell you exactly how much a property is worth, so look into its history and work with a professional who is able to identify the positives and negatives before giving you a figure for what they think it should be sold for.

Keep this figure in mind when trying to purchase the property and use the results of your research as a bargaining tool. You will find that lenders are much more willing to sell quickly if you make a reasonable offer that takes the issues the property has into account, plus you don’t place yourself at risk of offering too much in the first instance.

Have The Budget

It is important to remember that the lender that is trying to sell the commercial property has already been burnt at least once before by a previous owner, so they will be looking for somebody who is able to demonstrate that they can back up what they say. As such, you should have more than enough money in your account to show that you will be able to handle initial costs and the loan repayments for a substantial period of time.

Print off bank statements and make sure that the right people see them. Furthermore, try to offer the largest initial sum that you can. This will help you stand out against other buyers who are interested in the property, in addition to increasing the confidence levels that a lender has in you.

Patience Is Key

Don’t get frustrated if your initial efforts end up fruitless. Some lenders may be a little stubborn and won’t be willing to let properties for a price that you deem fair, instead preferring to see if they can find a better offer. Don’t be suckered into making that better offer yourself.

Instead, simply wait and see what happens and always keep your budget in mind. In many cases you will find that nobody else has offered to purchase the property, which makes it much easier to negotiate prices once you show your interest the second time around.