Service fees for a listing
The MLS is an all-inclusive database shared by local Realtors. Agents can access this database to search for what their buyers want. This one resource gives Realtors a significant advantage over anyone selling on their own. Over 90% of buyers find their new homes through the MLS.
What is a flat fee Multiple Listing Service (MLS) listing?
The MLS is an all-inclusive database shared by local Realtors. Agents can access this database to search for what their buyers want. This one resource gives Realtors a significant advantage over anyone selling on their own. Over 90% of buyers find their new homes through the MLS.
Real estate companies offering a flat fee MLS listings will input the information and pictures to the MLS for a price that varies from $99 to $995, depending on the level of services provided. However, an agent who brings in a buyer typically offers a fee. This fee can be any amount by law but is typically 2% to 2 ½% versus the 6% to 9% charged for complete service listings.
What is the difference between flat fee listings and full-service Realtor listings?
The owner undertakes duties usually provided by a Realtor. These include taking pictures, providing promotional copy, gathering information about the property, identifying repairs and improvements that will promote the sale and increase the return on investment, deciding on the best marketable price, monitoring the market, price adjustments if and when necessary, Arraigning showings, negotiating with buyers directly, obtain legal counsel, facilitating inspections, possible renegotiating and whatever else is needed to bring the sale to closing. Besides adding your listing to the regional MLS, the listing is generally syndicated to dozens of portal websites like Zillow, Trulia, Homes.com, AOLrealestate.com, etc., plus local real estate companies directly. The owner provided pictures that are added to the MLS and portal sites. A sign &/or lock box is usually provided. Some companies offer free renewals or listings that do not expire. If available in the area, companies often provide appointment center services that conveniently schedule showings. With higher-priced listing packages, more services are added.
What are the downsides of flat fee listings? Selling by the owner is a lot of work. Over half of the successful owners report that they would not try to sell again. This is because it may not improve the return on investment besides the work involved. Realtors have years of hard-won experience. If they can’t typically provide their clients with a better return on their investment than the owners can, they will not survive in the profession. Besides the logistics an owner can reasonably handle, a good deal of judgment is required. One misstep and the value often fall through. Inexperience, even in newly licensed real estate agents, can cost thousands of dollars or the entire sale. Most brokerages provide close supervision and training for their new agents for at least the first year. The owner does not have this essential advantage. Flat fee brokers who offer remote support cannot do so with the expertise that a Realtor with personal knowledge of the local market and property can. Finally, beware of invoking procuring cause claims.
Despite the work and uncertainty involved, many sellers manage to sell on their own using flat fee broker resources to maximize their housing investment exceptionally.
How to proceed.
Contact a reputable flat fee MLS broker who you can speak with directly to answer specific questions. This brief article can only provide an overview of the process.
While for sale by owner, packages vary from broker to broker, here are some important considerations:
The broker should be experienced and knowledgeable about local market conditions to provide anticipatory guidance and counsel.
Brokers should be local and able to provide market data and referrals for attorneys, contractors, inspectors, etc.
The broker should be readily available on 12/7.
The broker should be a direct MLS member where the property is located, not a portal site that remotely lists properties through affiliates.
An exclusive website that sends independent buyers directly to the owner to save the co-broke commission should be included.
An appointment center showing scheduling services should be provided at no additional cost.
Owners should retain the right to sell independently without paying additional commissions.
Changes or pauses to the listing should be provided at no additional cost.
Listing should not expire until the home is sold or taken off the market by the owner.
An electronic lock box and the sign should be provided and delivered at no additional cost.
All inquiries should be directed to the owner.
Professional quality photographic services should be available.
Owner-supplied photos and videos should be enhanced by a broker to the standards typically found on the MLS.
The broker should also offer complete service upgrades with a flat fee credited to the final commission.
Steps to closing: Engage local flat fee broker
Provide details and pictures
Approve listing on MLS and submit fee
Arrange to show with the appointment desk
Negotiate offers
Obtain legal counsel (recommended)
Fulfill contract obligations. This is done with the help of the co-broker and your attorney.
Close with more proceeds than if you had listed full service