Flat Fee MLS, how does it work?
How can I sell my home by owner? I don't want to pay a 6% commission to Realtors. I have heard you can list your home with a flat fee mls company and still sell by owner. Do I pay half the commission or can real estate agents sell my home? Just need help on how to sell by owner but still would like to have it on the mls. Thanks Susan C.
- Anonymous9 years agoFavorite Answer
Flat Fee MLS basically a flat rate which a licensed Real Estate Broker charges usually upfront to list your home in the local (MLS) Multiple Listing Service. The MLS is the way by which real estate agents list properties and search for them as well. Long ago the MLS was a thick book with photos and descriptions in a binder. Today the MLS is online accessible by only licensed agents. Information on the MLS about your can included bedrooms baths, features, and so on. Most importantly from the agents point of view when an agent is going to show a property they usually steer their clients to a property listed in the MLS which has a good co-op commission. The flat Fee usually can range from $250-$500 to list your home in the MLS. However, when listing your property consider the incentive for a buyers agent to show your home. The buyers agents incentive or co-op commission is usually a 2-3% of sales price. (Check local area to see what agents get as a co-op not the listing fee but co-op) So really instead of paying for a full service realtor like 6% you can save at least 3% and this is only if a real estate agent bring a buyer procured through the mls. One thing to note when listing your property the flat fee way is you might have to do some leg work like open houses and so forth and make sure to list an exclusive open listing arrangement. So that you can still market your home by owner to buyers through your own efforts and bring in a buyer yourself and pay $0 in commissions.With flat fee you get the best of both worlds. The MLS, Realtor.com and sell by owner as well. Combine the MLS with a good online presentation of your home with quality photos a floor plan to make it more interactive and start packing. Keep in mind most buyers are online today so just the mls alone won't sell your home. Check out OpenHomes247.com they have a great resource tool for online presentations and curtail to flat fee sellers.( I used them to sell our home)Source(s): http://openhomes247.com/
- Anonymous9 years ago
Flat-fee real estate brokers take a flat listing commission - depends on what other services you get with a flat-fee broker on how much exactly that flat fee is, but they charge somewhere around the $500-$1500 ballpark whether it sells or not. If it expires (doesn't sell) and it's time to renew, they charge another $500 or so to put it back up.
You still offer up a selling commission, which should remain competitive (3-3.5%), but only gets paid when it sells. All inquiries on the property go through you - including agent showings. It's your responsibility to do additional marketing (usually) and to do Open Houses. You're pretty much by-owner, except that it goes on the MLS for Realtor participation in showings.
In my opinion, flat-fee brokers are sell-outs and they get paid for doing next to nothing. They rarely offer any sort of seller guidance and serve very little purpose. They shouldn't even be considered Realtors in my opinion. The ethics of it all is questionable.
You can just list it by-owner and offer a selling commission in the listing. It's pretty much the same thing, only you save the $500-$1,500. If it expires multiple times, you're out even more money - even if it doesn't sell, and may ultimately cost you more in the long run than listing it with a full-service broker (depends on your price). For example, on a $150,000 house, the savings for a one-time listing is about $3,000 (IF it sells at all). If you re-list it twice (flat-fee contracts are usually 3 months and average time to sell a home is 4-6 months in this market), it's only a savings of about $1,500. This doesn't even take into account the fact that Realtor guidance yields seller-clients thousands more in contract sales prices than sellers with little or not guidance. So it may financially make more sense to sell it with a full-service agency, especially considering the cost of marketing the home yourself and the time to do it. Full-service listing agents really do earn a commission most of the time - especially in these difficult times in the real estate market.
Full-service agents ONLY get paid when it SELLS, which is a guarantee that your money will get results. Hope this helps. Sorry for the rant - just trying to preserve the reputation of my career. lol.Source(s): Full-service (non-discount) Realtor.
- LandlordLv 79 years ago
You would still have to pay the 3% commission to the buyers agent.
Flat fee lists you, period. They handle nothing else, all of the paperwork and legal issues are on you.
Keep in mind most agents will NOT show your property if you list this way. They know they will get stuck doing your work too because you do not know what to do. Twice the work and the same pay as a regular listing, so they try to sell the regular listings.
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- 9 years ago
I've not yet heard of flat rate MLS. You can sell by owner and if a Realtor has a buyer who wants to see the home, they will ask you to sign an agreement which basicly says if their buyer makes an offer you accept then you pay the Realtors' Broker an agreed amount of commission. This is negotiable, however, hiring a Realtor can be a big advantage. Interview several and pick the one that will work hardest for you. It could get your more money for your home!
- RuthLv 44 years ago
Assist-2-Sell I don t think so, discount Realtors. offer low commissions in the MLS thus less showings ,...... I agree with some of your other answers ,. Companies like Prestigious Homes Realty in Florida that offer a limited service listing ( flat fee) allow you to offer a higher commission ,,.. If you are not experienced in Real Estate, you should have a listing agent !
- HANDI MANLv 69 years ago
Some realtors will allow you to do allow the selling and listing and they will handle all of the paper work for that set flat fee. No matter what the selling price turns out to be their fee will be the same. Most realtors won't want any part of this deal. You will have to look around some.
- Glenn SLv 79 years ago
No such thing.
To belong to the MLS you must be licensed to sell real estate in that state, pay an up front fee for joining and quarterly/semi or annual MLS dues.