Ten years ago, a search for real estate would have started in the office of an area agent or by simply driving around town. At San Diego homes for sale , you would spend a day flipping through pages of active property listings from the local Multiple Listing Service (MLS). After choosing properties of interest, you would spend many weeks touring each property and soon you found the correct one. Finding market data to help you assess the asking price would take more time and a lot more driving, and you also still might not be able to find each of the information you had a need to get really more comfortable with a fair market value.
Today, most property searches start on the Internet. An instant keyword explore Google by location will probably get you a large number of results. If you spot a house of interest on a real estate web site, it is possible to typically view photos online and perhaps even have a virtual tour. After that you can check other Internet sites, like the local county assessor, to get an idea of the property's value, see what the existing owner paid for the house, check the true estate taxes, get census data, school information, and also have a look at what shops are within walking distance-all without leaving your house!
While the resources on the net are convenient and helpful, using them properly can be quite a challenge due to volume of information and the difficulty in verifying its accuracy. At the time of writing, a search of "Denver real estate" returned 2,670,000 Sites. Even a neighborhood specific seek out real estate can easily return thousands of Web sites. With so many resources online so how exactly does an investor effectively use them without getting bogged down or winding up with incomplete or bad information? Believe it or not, understanding how the business enterprise of property works offline makes it simpler to understand online property information and strategies.
The Business of PROPERTY
Real estate is typically bought and sold either through a licensed real estate agent or directly by the dog owner. The vast majority is purchased and sold through real estate brokers. (We use "agent" and "broker" to make reference to exactly the same professional.) This is due to their property knowledge and experience and, at the very least historically, their exclusive access to a database of active properties for sale. Access to this database of property listings provided the most efficient way to search for properties.
The MLS (and CIE)
The database of residential, land, and smaller income producing properties (including some commercial properties) is often known as a multiple listing service (MLS). Typically, only properties listed by member real estate agents can be added to an MLS. The primary reason for an MLS is to enable the member realtors to make offers of compensation to other member agents should they look for a buyer for a house.
This purposes didn't include enabling the direct publishing of the MLS information to the public; times change. Today, most MLS information is directly accessible to the public over the Internet in many different forms.
Commercial property listings may also be displayed online but aggregated commercial property information is more elusive. Larger MLSs often operate a commercial information exchange (CIE). A CIE is comparable to an MLS however the agents adding the listings to the database are not necessary to offer any specific type of compensation to the other members. Compensation is negotiated beyond your CIE.
Usually, for-sale-by-owner properties can't be directly added to an MLS and CIE, which are usually maintained by REALTOR associations. Having less a managed centralized database can make these properties more difficult to locate. Traditionally, these properties are located by driving around or looking for ads in the local newspaper's property listings. A far more efficient way to locate for-sale-by-owner properties is to visit a for-sale-by-owner Site in the geographic area.
What is a REALTOR? Sometimes the terms agent and REALTOR are employed interchangeably; however, they are not the same. AN AGENT is a licensed agent who is also a member of the NATIONAL ASSOCIATION OF REALTORS. REALTORS are required to adhere to a strict code of ethics and conduct.
MLS and CIE property listing information was historically only available in hard copy, so when we mentioned, only directly available to real estate agents members of an MLS or CIE. About ten years ago, this valuable property information started to trickle out to the web. This trickle is now a flood!
One reason is that the majority of the 1 million roughly REALTORS have Sites, and most of these Internet sites have varying amounts of the neighborhood MLS or CIE property information displayed on them. Another reason is that there are many non-real estate agent Web sites that also offer property information, including, for-sale-by-owner sites, foreclosure sites, regional and international listing sites, County assessor sites, and valuation and market websites. The flood of real estate information to the Internet definitely makes the info more accessible but also more confusing and subject to misunderstanding and misuse.
Real Estate Agents
Regardless of the flood of property information on the web, most properties remain sold directly through real estate agents listing properties in the local MLS or CIE. However, those property listings do not stay local anymore. By its nature, the Internet is really a global marketplace and local MLS and CIE listings are normally disseminated for display on many different Web sites. For instance, many visit the NATIONAL ASSOCIATION OF REALTORS Web site, http://www.realtor.com, also to the local real estate agent's Web site. In addition, the listing may be displayed on the net site of a local newspaper. In essence, the Internet is just another type of marketing offered by today's real estate agent, but it includes a much broader reach compared to the old print advertising.
In addition to Internet marketing, listing agents may also help the seller set up a price, hold open houses, keep the seller informed of interested buyers and offers, negotiate the contract and help with closing. When an agent provides many of these services it is known as being a full service listing arrangement. While full service listing arrangements will be the most common type of listing arrangement, they're not the only real option anymore.
Changes in the technology behind the real estate business have caused many agents to change the way they do business. In large part, that is due to the access immediately most consumers will have to property listings along with other real estate information. In addition, the Internet and other technologies have automated much of the marketing and initial searching process for real estate. For example, consumers can view properties online and make inquires via email. Brokers may use automated programs to send listings to people that match their house criteria. So, some agents now limit the services they offer and change their fees accordingly. An agent may offer to market the property in the MLS but only provide limited additional services. In the future, some realtors may offer services in more of an ala carte fashion.
Because of the level of real estate info on the web, when people hire a real estate agent today they should consider the particular services offered by the agent and the depth of their experience and knowledge in the relevant property sector. It is no longer nearly access to property listing information. Buyers and sellers historically found agents by referrals from family and friends. THE WEB now provides ways to directly find qualified agents or to research the biography of a realtor referred to you offline. One particular site, AgentWorld.com, is quickly becoming the LinkedIn or Facebook for realtors. On this site a realtor can personalize their profile, start a blog, post photos and videos and also create a link to their web site free of charge. Once unique content is added to their profile page the various search engines notice!
Some have argued that the web makes REALTORS and the MLS less relevant. We believe this is false over time. It could change the role of the agent but will make knowledgeable, qualified, and professional REALTORS more relevant than ever before. In fact, the quantity of realtors has risen significantly in recent years. No wonder, the web has made local property a global business. Besides, Internet or not, the easy fact remains that the purchase of real property may be the largest single purchase most people make within their life (or, for many investors, the biggest multiple purchases over an eternity) plus they want expert help. As for the MLS, it remains the most reliable source of real estate listing and sold information available and continues to enable efficient marketing of properties. So, what is the function of all online property information?
Online property information is a great research tool for buyers and sellers and a marketing tool for sellers. When used properly, buyers can save time by quickly researching properties and, ultimately, make smarter investment decisions. Sellers can efficiently research the market and make informed decisions about hiring an agent and marketing their properties online. The next step is to know where you can look online for a few of the greatest resources.
Internet Strategies
In the sections that follow, we provide strategies and tips on how to use the Internet to locate properties on the market and research information highly relevant to your decision to get the property. There are plenty of real estate Web sites from which to choose and although we do not mean to endorse any particular Web site, we have found the people right here to be good resources in many instances or even to be so popular they need mention. One method to test a Web site's accuracy would be to search for information about a property you already own.
Finding Real Estate for Sale
Despite the accessible access to property listings, many believe that MLS databases continue steadily to offer the most satisfactory and accurate way to obtain real estate information. Most MLSs now distribute content to other Sites (primarily operated by real estate agents). An excellent starting point for MLS originated content is the national NAR Internet site, realtor.com, which is also the most popular internet site for searching real estate listings. Virtually all local and regional MLSs have an agreement with realtor.com to display much of their active listing inventory.
Some local and regional MLS systems likewise have a publicly accessible Site. However, to get complete information you'll most likely still have to look for a qualified local REALTOR. Many local real estate agents will also provide their customers (via email) new listings which are input into the MLS that match their predefined criteria. This is very helpful to a busy buyer.
Additionally, there are many Sites that display both agent listed and for-sale-by-owner properties. A number of the more popular Internet sites include zillow.com and trulia.com. These sites offer other services too. For example, zillow.com is most beneficial known because of its instantaneous property valuation function and trulia.com for providing historical information. Another source of properties for sale may be the state, regional, and local Sites associated with brokerage companies; for example, remax.com or prudential.com. Se's like yahoo.com and classified advertising sites like craigslist.com also have a lot of active property listings.
One key difference between these sites is how much information it is possible to access anonymously. For example, at trulia.com you can shop anonymously up to a point but then you will have to click through to the agent's Web site to learn more. Many new real estate search engines allow you to sift through listings without having to fill out an application. The best strategy would be to browse some of the sites listed above to find geographic areas or price ranges that are interesting. Once you get serious about a house, then that is the time to look for a qualified REALTOR of your choice to conduct a whole search in the local MLS.
In addition, it never hurts to find the old-fashioned way by driving through the neighborhoods that interest you. There is no substitute for physically, not virtually, walking the block if you are making a serious investment decision. In this sense, property is still a very local business and standing in front of the property can result in a much different decision than viewing a Web page printout.
Valuing Real Estate
As we mentioned, one of the most popular property tools is zillow.com's instant property valuation. Just type in an address and in and you also get yourself a property value. It even charts the purchase price good and the bad, and shows the final date sold (including price) and the house taxes. There are other sites offering similar tools such as housevalues.com and homegain.com. Unfortunately, many people use these estimated values alone to justify sales prices, offers and counteroffers. However, they are only rough estimates based on a formula that incorporates the local county sales information. These estimates can swing wildly over a brief period of time and don't may actually always track actual market changes, which are normally more gradual. In addition, these estimates do not automatically consider property remodels or renovations or other property specific or local changes. This is simply not to state these sites are not useful. In fact, they're great starting points and will give a good ball-park value oftentimes.
With regards to getting a more accurate value for a particular property, you can find other strategies that are more trustworthy. One is to go directly to your county's Internet site. More often than not the county assessor's section of the Site provides sales and tax information for several properties in the county. To be able to research a particular property or compare sales prices of comparable properties, the neighborhood assessor's sites are actually helpful. When you visit a county's Web site you are getting information straight from the source. Most counties today publish property information on their Web sites. Often you cannot only see the price a previous owner paid, but the assessed value, property taxes, and maps. Some county assessors are now adding market and property valuation tools too.
Given the significance of valuation to investing, we are also going to remind you of both most important (non-Internet) valuation methods: real estate agents and appraisers. Working with a local REALTOR is an accurate and efficient solution to get value information for a house. While one of the primary purposes of the MLS would be to market the active property listings of its members, the system also collects sales information for those listings. REALTOR members can pull this sales information and produce comparable market analyses (sometimes called CMAs) offering an excellent snapshot of a particular property's value for the market in a specific area.
Finally, probably the most accurate way to value a property is by having a certified appraiser produce an appraisal. An appraiser will typically review both sold information in the MLS system together with county information and analyze the information to make a valuation for the property based on one or more approved ways of valuation. These methods of valuation can include a comparison of similar properties adjusted for differences between the properties, determine the price to replace the property, or, having an income producing property, determine a value using the income generated from the property.
The Neighborhood
There are plenty of ways the Internet may help you obtain the scoop on a specific neighborhood. For example, census data are available at census.gov. Also you can browse the neighborhood scoop at sites like outside.in or review local blogs. A blog is a Web site where people discuss topics by posting and responding to messages. Start by considering placeblogger.com and kcnn.org/citymediasites.com for a directory of blogs. Trulia.com has a "Heat Map" that presents how hot or cold each neighborhood is based on prices, sales, or popularity among the sites users.
Schools
With regards to selling residential property or rental properties that focus on families, the caliber of the region school district makes an enormous difference. There are lots of Web sites specialized in school information. Check out greatschools.net or schoolmatters.com. Most local school districts likewise have their own Site. These sites include a variety of information regarding the public schools and the school district, including its district demographics, test scores, and parent reviews.
Finding the Right AGENT
A recent addition to the Internet boom in real estate information is Internet sites that let real estate agents market their expertise and local knowledge by displaying their professional profiles and socially networking with blogs. You can search to find an agent with a particular expertise, geographic section of specialization, or a realtor offering specific services. The web site AgentWorld.com lets users efficiently find an agent with the proper expertise using keyword searches and clean and simple agent profiles. AgentWorld.com also enables agents to create personalized blogs, photos and videos to help consumers find a very good agent for his or her needs. Plus, many agent profiles include a direct connect to the agent's internet site where you'll likely find the local MLS listings.
Maps and Other Tools
The Internet has made mapping and locating properties much easier. To get an aerial view or satellite image of a property or neighborhood, go to maps.live.com or maps.google.com or visit walkscore.com to see how walk-able a specific property is. These sites can provide you a concept of a nearby characteristics and the forms of entertainment, restaurants, along with other facilities that are within walking distance of the property. Maps.Live.com offers a view at an angle to help you start to see the sides of houses and Maps.Google even offers you a 360 degree street-level view for certain neighborhoods. If you have not tried one of these satellite map Web sites, you really should only if for amusement.
Final Thoughts on Internet Strategies
The Internet is an extremely effective research and marketing tool for real estate investors but is not a replacement for an educated experienced property professional. The Internet can help you save money and time by enabling fast and simple property research and marketing options. Sites like AgentWorld.com also assist you to efficiently find a REALTOR who fits your buying or selling needs.
Always remember, in terms of Internet strategies for property: More knowledge is better. You should employ the Internet to create your knowledge base on a target property or to find a real estate agent with expertise you need. However, the big caution here's that the Internet should not replace human judgment and perspective, professional advice or physical due diligence-keys to successful investing.