Sellers

Frequently Asked Questions

Palm Springs Desert Area Homes, Condos and Real Estate 

Q: What is the Desert Area MLS?
A: The Desert Area MLS (Multiple Listing Service) is a cooperative network of Palm Springs Desert Area real estate brokerage firms. It is an extensive web-based database of information about properties for sale and properties that have sold. 

Most residential real estate transactions result from an MLS listing. It is simply the most efficient property marketing system there is and ensures that properties listed are sold at the best price and in the least time. Realtors® pay an annual fee for the right to publish information about homes in the MLS. A condition of use of the MLS is that sellers pay a commission (to be determined by the sellers) to any licensed real estate agent that brings them a buyer.

Q: Why should I list my home on the Desert Area MLS? 
A: Homes that have been listed on the MLS sell faster and for more money than homes for that are sold strictly "by owner" outside the MLS. Buyers that shop with "for sale by owner" sellers usually make low-ball offers, because they figure in the commission they know the seller is saving. However, buyers shopping the MLS know that the seller owes a commission and will figure that into their offers. As a seller, you can take advantage of this with a flat fee MLS listing, yet pay only half or less of the standard commission! Plus, with Internet and Drive-by exposure, you can even avoid the commission altogether.

By listing your property on the MLS with Select Realty Services, you make it available for a database search to all the members of the MLS. This means that the thousands of qualified and interested buyers working with local Realtor® members of the MLS will have access to your home's information. The MLS is how buyers find homes!

Q: How effective is the MLS?
A: According to the National Association of Realtors®, 1) approximately 80% of all U.S. homes are sold through Realtors® using the MLS, and 2) homes listed on the MLS average net proceeds 7% higher than homes sold "by owner" outside the MLS. It's just a fact. The MLS is where the buyers are and where you need to place your property! 

The effectiveness of the MLS is based on cooperation between real estate offices and the guaranty of compensation. The vast majority of listed homes do not get sold by the listing office. Almost all sales involve two offices - the listing office and the selling office. 

This means that, despite all the hype and promises of the listing presentation, it is highly unlikely that the listing agent will sell your home. It is the MLS that will do it.

Q: Why should I use a flat rate MLS listing and consulting program like yours?
A: Because you save money by choosing the level of service you need instead of paying the full, regular listing commission.

In our opinion an MLS listing is absolutely essential because it provides far greater exposure than any traditional for sale by owner (FSBO) marketing and advertising effort. It truly puts you where the buyers are. Why? Because buyers use agents and agents use the MLS. Also buyers' agents trust the MLS rather than FSBOs because the MLS assures them of the commission promised. Plus, these days, buyers know that they can search the MLS for themselves.

Relying solely on newspaper ads, a yard sign, open houses, fliers, and word of mouth is hit or miss and provides limited exposure. Also, advertising your home for sale in the newspaper can become an expensive proposition. 

Beyond a flat rate listing in the MLS, which is very inexpensive compared to newspaper advertising, you can choose from us a level of professional service that suits your comfort level.

Q: How cost effective is a flat rate MLS listing?
A: Do the math. Our flat rate listing fee is $485.00 for six months, including a CMA. At the time we wrote this, a small 3-line advertisement in the classified section of the local paper is approximately $17.50 per day. If you were to run a 3-line ad at $17.50 for 180 days, the cost would be $3,150.00. And think of the exposure. The entire local real estate community, representing thousands of buyers, plus the general public are actually using the MLS daily to search for a property like yours. Our flat rate listing fee is  tremendous value for money.

It's a fact. Buyers using real estate agents get their information from the MLS. Not from newspaper ads.

Q: Can I really save the listing broker's fee and still get the same benefits?
A: Yes and No! You can save a lot on the listing side of the fee but you need to compensate the buyer's agent. It's worth it.

Most buyers use an agent (buyer's agent) to help them find their home, since it does not  cost them anything. The agent does a lot of work researching and selecting property. This includes matching buyers to your home. 

The buyer's agent is working against you to get the best possible deal for his or her client. If you can deal with this, great. But if you want the same representation on your side of the transaction, we can provide it as part of our menu of services.

On the other hand, it is true that the buyer's agent will also do a number of things that will likely assist you in selling your home and working through the sales transaction, such as:

• Call you for an appointment (or use a lock box), show your home, and then sell  it for you. Their motivation is the cooperative commission fee you are offering through your MLS Listing. The more you offer, the greater the motivation.
• Qualify the buyer to ensure financial capability to make the purchase.  
• Prepare and present a purchase offer for your home on behalf of the buyer.
• Represent the buyer's interest in the transaction. However, although the agent will represent the buyer's interest, he/she is pledged by a code of ethics to be honest in the transaction. The buyer's agent will answer your questions, to the extent it does not harm the buyer. So you can at least benefit from the buyer's agent's  technical know-how. On the other hand, anything you tell the buyer's agent will be relayed to the buyer, to whom the buyer's agent owes a fiduciary responsibility. 
• More than likely tell you what disclosures are expected of you. This is because the buyer's agent's office will have documentation check lists to comply with.
• Shepherd the transaction to a conclusion. The buyer's agent will make sure all deadlines are met and inspections made. It's how they get paid.

It is also true that under California law the Buyer's Agent owes you, the Seller:

• The diligent exercise of reasonable skill and care in the performance of the agent's duties.
• A duty of honest and fair dealing and good faith.
• A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of the parties.

So you can get a lot of practical help from the Buyer's Agent. But that's where it stops. Always remember that the Buyer's Agent is not on your side. His or her job is to get the best possible deal for the Buyer, not for you!

Q: How much of a fee should I offer the Selling Agent?
A: You are completely free to decide that. The MLS rules require that a unilateral offer of compensation is made but do not set the amount (for ant-trust reasons). The amount could be anything from, say, 0.1% to, say, 10%. But, if you offer something very low, you needn't expect selling agents to bring you buyers! The code of ethics demands that they should, if your property is perfect for their clients' needs, but human nature inevitably comes into play. It is relatively rare for buyers to offer their agents a commission. Industry expectations are that the seller pays the commission and the cooperating (buyer's) agent shares in it. We suggest 2 to 3%. The industry expectation is 3%. If you really want to motivate the Buyer's Agent, offer more.

Q: What are some other reasons for using your flat rate MLS listing service?
A: Here they are, in no particular order:

• You will eliminate nuisance calls from listing agents. Once your property is listed on the MLS, they will stop calling.
• Unless you are also running FSBO ads, you will also eliminate nuisance calls from investor types trying to lowball you out of your property.
• If you are working with a buyer's agent, he/she will make arrangements for the deposit of earnest money funds into escrow. You won't have to worry about it.
• The MLS operates 24/7. Realtors® work all kinds of hours searching for properties for their buyers. 
• Working with the buyer's Realtor® will save you a lot of time and effort.    

Q: OK, it's listed. Now what do I do?
A: Here are the basics:

• You (or a buyer's agent) show your home.
• Respond directly to all telephone calls from interested buyers and their agents.
• Provide and pay for any other advertising or marketing you may desire.
• Negotiate directly with buyers and buyers' agents, without our involvement.
• Draft your own contracts and counter-offers. You are welcome to use those we have provided on this site. 
• Ensure that all disclosure requirements are met.
• Make escrow and title arrangements.
• Close the sale with the assistance of escrow.

Q: How do you provide your services at such a low price?
A: Most of our services are provided electronically. We have a low overhead and a  small staff and most of our business is done via phone, fax, email, and the Internet. Our marketing costs are low and mainly Internet based. So, you get the benefit of the savings we make. Also, our flat rate listing fee is kind of an introductory "loss leader." While many sellers are happy with the listing alone, still others want to take advantage of our other "unbundled" services. 

The irony of the standard listing system is that the listing agent spends far more time, effort, and money on selling one-size-fits-all listings to sellers than he/she spends on actually selling property to buyers. The sales effort includes countless mailings and big advertising promoting the agent and his or her image as "Top Producer."

And the sales pitch includes "these 30 or so things I am going to do to market your home, including brochures, signs, open houses, ads, etc," when in fact the agent knows very well that there are really only two things that sell houses -  price and the MLS.

Q: When will my property be listed on the MLS?
Normally your property will be listed on the MLS within one business day of receipt of the necessary documentation. 

Q: How long will it be listed on the MLS?
A:  Your open listing is good for six months, with data updates per our agreement.

Q: Will my listing look the same as those who have agreed to pay a full listing commission to a traditional agent?
A:  Yes. Your listing will look like all the other listings on your local MLS. However, we will make notes in the marketing data that contact is to be made to you direct, rather than through our office.

Q: How will I know if my property is accurately listed?
A: We will send you a copy of your MLS listing and you may make any changes you like, provided the changes are acceptable to the rules and regulations of the Desert Area Board of Realtors.

Q: Do I have control over all listing information?
A: No. The MLS arranges required information according to a specific template. Our ability to customize the MLS data listed is limited. Furthermore, only the most basic information will be displayed on the publicly accessed part of the listing.

Q: Why is my contact information not present on Realtor.com?
A: Realtor.com (and therefore the Desert Area MLS) does not allow seller information to be displayed on their site. Realltor.com is a web based MLS with strict guidelines regarding property listings. They make money by selling advertising and marketing packages to Realtors, who purchase these services based on the understanding that they will receive buyer leads directly.

Q: What if I sell my house on my own?
A: This is a major benefit that sets us apart from your typical Realtor. When you list your home through Select Realty Services' flat rate MLS listing program, you pay a flat fee of just $485 but you still retain the right to sell your home on your own. If you find your own buyer, you will not be obligated to pay a commission on the sale.

Q: Must I tell you if I accept an offer on my house or when the escrow closes?
A: Yes to both. The MLS rules require us to enter changes in status from "Active" to "Pending" to "Sold."

Q: If Select Realty Services brings me a buyer and sells my property, will I owe a commission?
A: Yes. If Select Realty Services, or any other member of the MLS, presents a qualified buyer to you and that buyer purchases your home, whoever brings you the buyer will be entitled to the selling agent's commission for selling your home as the buyer's agent. Of course, you control the amount of the commission you will pay.

Q: Will I experience any discrimination from other Realtors® because I'm using a flat rate, discounted listing service? 
A: No. It would be illegal for them to discriminate. It would violate Federal Antitrust Laws, to say nothing of their code of ethics. 

Q: Will you show my home?
A: No. Not unless you opt for a full service listing. In any case, Buyers much prefer it if the owner, rather than the agent, shows the home because the owner has all the answers.

Q: Can I use a lockbox?
A: Yes. We can provide a SUPRA electronic lock box for an additional charge. Or you can obtain your own combination lock box. You will just need to be sure to give us the combination code, so that we can include it in the MLS listing.

Q: Do I have to use a lockbox?
A: No. Your MLS listing can specify "by appointment only." But you should bear in mind that providing easy access to buyers' agents will greatly increase their willingness to show your property.

Q: If I find a buyer on my own, how much deposit should I ask for?
A: We recommend that earnest money deposits (also known as good faith deposits) be no less than 1% of the sale price to start with. The larger the deposit, the more qualified and serious your buyer is and this helps to justify taking your house off the market. It is common practice for the Purchase Agreement to provide for liquidated damages of 3% of the purchase price, in the event that the buyer "walks away" from the transaction without just cause. So, if possible, it is a good idea to get the earnest money deposit increased to 3% right after your acceptance of the buyer's offer.

Q: When a potential buyer calls, what should I ask before showing my home?
A: Always get the buyer’s name and phone number, so that you can confirm the appointment and follow up after the showing. Always ask about their financing arrangements before you agree to show your home. Ask the buyer to bring at least a pre-qualification (credit looks OK) letter and, if possible, a pre-approval (commitment to fund) letter from a bank or mortgage company. 

Q: Should I be concerned about lead-based paint?
A: If your home was built before 1978, you are required by law to provide your buyer with a lead-based paint disclosure, along with the EPA pamphlet entitled, "Protect Your Family From Lead In Your Home". You can find standard form documentation on this site, free for your use. We have reprint rights to it. 

Q: What about the other disclosures I hear about?
A: California has very strict laws concerning real estate disclosures. You should be very concerned about them. You can find information about disclosures and standard form disclosure documentation on this site, free for your use. We have reprint rights to it. 

Q: Will you conduct open houses?
A: No. However, you may hold an open house of your own. You should know that while open houses sound good to the client, they  are primarily prospecting tools for real estate agents. This is how agents find prospective buyers. Very few homes are sold as the result of an open house. You will find that most of your visitors are bargain hunters, curious neighbors, and people with nothing better to do on weekends.

Q: Will my property be listed on the Internet?
A: Yes. Your property will be listed on www.realtor.com, www.homeseekers.com, www.homes.com and other independent real estate websites.  These Internet listings will give you national exposure to out-of-state homebuyers. Since many of your potential buyers will be from outside your local area, this exposure can be a vital component in selling your home quickly and for the best price. The independent websites will obtain your listing directly from the MLS. Keep in mind that they pick up whatever they wish from your MLS listing to publish on their websites. Thus, we have no control over these independent websites and we cannot change or edit their content.

Q: Who will handle the paperwork involved in the sale of my home?
A: On this site you will find California real estate transaction forms in fairly wide use. They are free for you to use, since we have reprint rights. However, they require study. If you want the benefit of professional advice and the benefit of documentation approved by the California Association of Realtors, we will assist for an additional transaction fee.

Q: Is it a good idea to get professional help with the transaction?
A: Bear in mind that the offer you receive is written by a Realtor® who is working in the sole interest of the buyer. Do not expect anything written in the contract to be in  your best interest! There is plenty that can go wrong in a real estate transaction. If you don't know your way around (and why should you?), you could lose the sale or invite a lawsuit. Study the menu of services we provide on this site. Select what you need. Or use an attorney experienced in the field.

Q: If I don't hold an "Open House" or run newspaper ads, will I miss out on numerous potential buyers?
A: A listing on the MLS and the right sales price are by far the most influential factors in the sale of your home than all other sales and marketing techniques combined. 

Agents use newspaper and magazine advertising, cable TV programs, and open houses mainly to gain market exposure for themselves as "Top Producers" and not specifically for marketing your property. At the same time, the listing agent will advertise the use of these sales techniques to help justify a "full price" commission for listing the property. So a lot of your full price commission is just paying to enhance the professional presence of the agent. There is nothing wrong with this but remember that it is the MLS alone that is responsible for 80% of all U.S. home sales.

Q: Do you accept credit cards?
A: Yes, you can pay online via PayPal using your credit card. We also accept personal checks.

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Palm Springs Desert Area Homes, Condos & Real Estate are to be found in the Coachella Valley cities of Palm Springs, Palm Desert, Cathedral City, Rancho Mirage, Indian Wells, Bermuda Dunes, La Quinta, Desert Hot Springs, Thousand Palms and Indio. These are the cities that form the Greater Palm Springs Desert Area and are home to some of the finest living and the best resort real estate in the world. If you want to sell homes, condos, or real estate anywhere in the Coachella Valley,  this site will provide the little known information you need and the solutions you seek.