According to NAR, which is keen to follow this new trend very carefully, 9 out of 10 home buyers still use a real estate agent in the traditional way. However, NAR goes on to point out that in 1995 only 2% of buyers used the web to search for a home, but in 2005 that figure jumped to 77% and has certainly increased since then. This is not necessarily bad news for the broker / agent. It actually provides a lot of information now, including photos, demographic maps, and all kinds of useful information for a buyer.
There are so many options now for a new home buyer to easily search for that it has been a boon to the industry and the consumer.
However, when the Internet freely delivers information to the consumer, which was previously in the hands of the professional, the advantage that the professional has is reduced and the commissions soon begin to fall. We believe that the standard 6% commission is being questioned and that all buyers and sellers can now get a better deal. That commission has always been negotiable and the time has never been better for the consumer to get a better deal.
For example, discount real estate agents like Zip Realty will offer services at 4%. That’s a huge savings and there are new business models that challenge even discount agents. Redfin is an Internet website that offers to reimburse the buyer 2/3 of the commission. Typically, the 6% commission is split between the buyer’s and seller’s agents. Redfin will keep only 1% of that commission for the house transaction and they will even look for a loan for you.
If the old adage is true that you get what you pay for, are they really the good deal that they seem to be? We don’t think there is an answer for all people here, some people will be very happy with the service and others will not have a good experience. Either way, it is clear that the Internet offers new options for the consumer.
How to buy online
1. MLS. It is the old standard and trustworthy.
2. Trulia. A New Model for Home Buyers on Search Engines
3.realtors.com
4.freddie mac has a listing of homes for sale
5. Forsalebyowner offers a listing for sale without the use of a broker. This is a great way to save commission, but please only for the very savvy.
6. HUD has a list of HUD homes for sale
7. craigslist is a community bulletin board that lists homes for sale
8. All banks have a stable of foreclosed homes for sale, often at a deep discount. Use a professional here, unless you understand the risks.
9. foreclosure.com is another site with foreclosed homes for sale
10. All brokerages such as Caldwell Banker, Provident, etc. They will all provide good search tools to help you find your new home.
11. The website of any individual associate agent will list the houses represented.
12. Housingmaps is another exciting new tool for home buyers and sellers
There is so much on the internet now, just sit back and take the tour.
Some financial resources
Veterans Administration Home Loan Program,
Affordable housing at Freddie Mac,
Your property route
CICA programs for affordable housing,
Housing Assistance Council
Howard Bell for yourpropertypath.com