Ohio Realtor’s Perspective On Zillow, Realtor.com, Sold.com, Movoto

Hi,

I’m Levi Dixie. I’m a license Realtor® in the state of Ohio. I feel like putting my blogging abilities to extreme test and talk about what I feel needs to be talked about. I am not sure if I can get in trouble for talking about some of these real estate websites. I am not sure if I should be talking about these real estate websites. I do feel these real estate websites are not being honest with their customers and so it is up to us Realtors® to give truth and transparency.

What I’ll be talking about is truth and transparency that the only thing useful about these websites is looking at what is for sale.

In my experience, and I’ll talk more about it in this blog, is that these websites does not help much in anyway to get anyone to buy or sell. All they are there for is to “capture” buyers and show your house for sell to the world.

We Are Licensed

Even I have to ask, are these websites even licensed to do what they do? OK, sure they “list” your home for sale, but what else are they good at? What else can they do?

I do not know what the rest of The United States of America and the world is like in terms of how Realtors® do business. Where I live, we pay these dues. 2 dues. One is for the association of Realtors® and the other is for the MLS. The MLS stands for Multiple Listing Service. Do you remember those giant books that had all the homes, land, lots and even commercial businesses for sale? The MLS is pretty much a digital version of that. Realtors® make friends with other Realtors® and this is the main way how we make a sell. Because it’s digital, these websites get that data. So, with those dues we pay out, they’re already getting a piece of the pie. So why ask for more from us?

I have always wondered do they have licensed Realtors®? I guess this segues into the next and probably biggest topic we need to talk about: Fees.

Fees

Fees and monthly subscription. Referral fee is what us Realtors® pay out to. Yes, you read that correctly. You know that commission that you’re suppose to pay to your Realtor® for selling your house? Are they being open, honest and transparent they have to pay a commission fee at closing? Some websites have what we Realtors® like to call lead engines. Take Realtor.com for example. You go on this website, view some homes you may be interested in buying, click on whatever you click on to fill out a form or simply say interested and it gets sent to us. Realtor.com has what is called Opcity. Say you do what I mentioned. I accept the lead (you the customer) and we get to talking.

Say we do buy a house. I have to pay a fee at closing. Instead of commission being $3000, I have to take 35% of that which would be $1,050 and pay that to Opcity. Another scenario is $3000 and my broker split is $1500. I have to pay $525 to Opcity. Movoto.com has OJO Select Network.

This actually does not help the customer or client at all.

Let’s face it, it’s all about how you write that contract. Say you reached out to me and we buy a house? No fees involved. Instead of paying $525 or $1,050 to Opcity or OJO Select Network, I can write in the contract or to Title to take out $300 and pay it toward the office fee.

Sadly, with having to pay a referral a fee, Opcity and OJO wants their money.

Oh, and it does not stop there.

I feel like this creates greed among Realtors®. I have had Realtor.com call me asking me to sign up. I always cut to the chase and ask how much. I do not know what the price is now, but I refuse to pay $400 a month just to get a lead.

A lead is potential buyer or seller. A customer. A client is someone you make initial contact with and ready to go.

Their Disservice To You

One thing I noticed these websites are not good for is they do not educate and truly help buyers and sellers buy and sell their home. Writing this I feel is putting the power of the internet to one of its limits

• Communication from these leads is often terrible. I have to vet leads. Vetting is careful examination. This is done through questions. I vet leads to see if they are serious, ready, willing, and able to buy. From a sellers view point, and as a listing agent selling my client’s home, I do not want anyone who is not ready, willing, able to buy to walk through the home. Would you as a seller want anyone who is anyone to walk through your home?
• Communication is really the biggest thing with these lead generation and lead capture. Often times I get ghosted. I send out emails and texts, and I hear no replies for like a year. Thankfully with my CRM I use, It’s easy to send mass texts and emails.
• Why Ghost your Realtor? It’s stupid and it wastes our time.
• Often, leads come in and they are not pre-approved. They want to look at a house.
  
  

Us as Realtors®, we’re suppose to educate you, the client and customer on how to buy and sell a house. A lot of us Realtors® have taken Continuing Education to help our customers and clients in ways other Realtors® lack knowledge and experience in.

Soooo…..

Maybe I’ll get in trouble for writing this, maybe I will not.

It’s best to reach out to a Realtor® directly.

here is my website and will always remain the same unless any change comes like our brokerage is going through some changes.

www.levidixie.realtor

What Buyers and Sellers Need To Know About the Appraisal Gap

It’s economy 101 – when supply is low and demand is high, prices naturally rise. That’s what’s happening in today’s housing market. Home prices are appreciating at near-historic rates, and that’s creating some challenges when it comes to home appraisals.

In recent months, it’s become increasingly common for an appraisal to come in below the contract price on the house. Shawn Telford, Chief Appraiser for CoreLogic, explains it like this:

“Recently, we observed buyers paying prices above listing price and higher than the market data available to appraisers can support. This difference is known as ‘the appraisal gap . . . .’”

Why does an appraisal gap happen?

Basically, with the heightened buyer demand, purchasers are often willing to pay over asking to secure the home of their dreams. If you’ve ever toured a house you’ve fallen in love with, you understand. Once you start to picture yourself and your furniture in the rooms, you want to do everything you can to land the property, including putting in a high offer to try to beat out other would-be buyers.

When the appraiser comes in, they look at things a bit more objectively. Their job is to assess the inherent value of the home, so they’re going to study the facts. Dustin Harris, Appraiser Coach, drives this point home:

“It’s important for everyone to understand that the appraiser’s job in the end is to remain that unbiased third party, to truly tell the client what that home is worth in the current market, regardless of what decisions have been made on the price side of things.”

In simple terms, while homebuyers may be willing to pay more, appraisers are there to assess the market value of the home. Their goal is to make sure the lender isn’t loaning more money than the home is worth. It’s objective, rather than emotional.

In a highly competitive market like today’s, having a discrepancy between the two numbers isn’t unusual. Here’s a look at the increasing rate of appraisal gaps, according to data from  CoreLogic (see graph below):

What does this mean for you?

Ultimately, knowledge is power. The best thing you can do is understand appraisal gaps may impact your transaction if you’re buying or selling. If you do encounter an appraisal below your contract price, know that in today’s sellers’ market, the most common approach is for the seller to ask the buyer to make up the difference in price. Buyers, be prepared to bring extra money to the table if you really want the home.

Above all else, lean on your real estate agent. Whether you’re a buyer or seller, your trusted advisor is your ally if you come up against an appraisal gap. We’ll help you understand your options and handle any additional negotiations that need to happen.

Bottom Line

In today’s real estate market, it’s important to stay informed on the latest trends. Let’s connect so you have an ally to help you navigate an appraisal gap to get the best possible outcome.