A4HB Homebuyer's Blog

2.7.1 Two MLS systems serve our area

There are two major MLS systems in our coverage area and we subscribe to both. Many companies only subscribe to one system as a cost-saving measure to the detriment of their clients. If you are looking for a home along the US 36 or I 25 corridors between Boulder and Denver, and your broker only has access to one of the two systems that cover the area, she cannot do a first-rate job of covering that market for you. Neither agency relationship, experience, office structure, nor eagerness and attitude matter. She simply can’t do it. If your broker can’t pull

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2.7.9 Search New Built Homes

Nearly all residential builders in the Boulder and Denver Metro Area will pay commissions to real estate agents who bring buyers to their developments. Most list their homes and advertise the commissions offered in the local MLS systems so that real estate agents and home buyers are aware that these homes are on the market. But there are builders who don’t list their properties in the MLS databases, even though they are happy to pay commissions to agents working with potential buyers. As a result, when we are working with buyers who are interested in new homes, we routinely extend

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2.7.8 Delays and Limitations in Data Access

Data on new listings or price changes are available in the full Realtor MLS systems within moments after the listing agent enters the information into the system. It takes about 24 hours for this data to upload to public systems. Because new data is typically uploaded to the public systems only once daily (usually at night), the information on the public MLS systems is usually delayed by about 24 hours. In most cases, a 24 delay will not harm buyers who are relying on the public MLS sites in their home search. It should be noted, however, that in some

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2.7.7 Data on Properties that Have Sold

2.7.7 Data on Properties that Have Sold A critical component of the full MLS systems used by real estate agents and appraisers is data on all the properties that have sold through the system in recent years. This information is minimal on online websites. Why is this information useful? Having access to this information makes it possible to go back to prior listings of the property to see if the condition of the property has been improved between the prior sale and the current listing, like whether the counter tops or flooring have been changed or whether the basement has

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2.7.6 Is the Property Available…or Not?

The full MLS systems available to real estate agents distinguish between properties that are available for sale and those that are “under contract,” but the data making this distinction is not transmitted to the public MLS sites. As a consequence, when you search the web versions of the MLS you can’t tell the difference between: Active Properties: Properties that are actually available for you to buy. Under Contract Properties: Properties where the owner has already accepted an offer from another buyer and is obligated to sell that property under the terms of the contract unless the buyer backs out for

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2.7.5 Loss of Assistance and Representation

Smart buyers use the seller’s commission money to hire a good buyer agent to help them locate and evaluate homes and represent their interests in working through the purchase process. Public access to a limited MLS system discourages that, to the benefit of the listing agent and seller, and to the sometimes substantial detriment of the buyer. The agent listing a home for sale has a marketing or “listing” contract with the owner that typically obligates them to pay the agent a 4-7% commission when the home sells. This contract will also specify that the listing agent will split that

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2.7.4 Limitations of Online MLS Systems

The Realtor MLS services are information-based systems designed to help agents and their clients access the data they need to safely and intelligently buy and sell homes.  Online listing websites look a lot like the Realtor MLSs but are really nothing more than marketing systems for sellers and their agents. Most MLS systems now export much of their data on homes for sale to publicly accessible web sites like Zillow and Redfin. These sites make it possible for you to conduct a home search on your own in a manner that was unimaginable years ago. Prior to the advent of

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2.7.3 Don’t Rely on these Areas Covered Descriptions

Having described the areas that the various MLS systems cover, we’ll tell you why you shouldn’t rely on the area descriptions we’ve provided if you’re using these systems for a serious home search. How the Situation Developed First, you need to understand that these MLS database systems emerged not from an abstract drawing of geographic boundaries but from the sharing of real estate listing data among groups of real estate agents. Many years ago, when a home owner hired a real estate company to sell their home, the information on that home was held within that company and they worked

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2.7.2 National MLS System

National MLS System. The National Association of Realtors (NAR) sponsors this system, which provides national coverage of real estate listings. It’s inclusiveness is limited by the fact that some local systems, some listing agents, and some sellers opt not to upload their data to it. It is also limited by the fact that the reduction of data from a myriad of local systems leads to some errors and to a reduction of the level of detail on each property listed on this system. Still, the system is very useful for comparing prices around the country or for getting a preliminary

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