Using a Flat Fee MLS listing service to list your home in your local MLS for a low flat fee instead of paying the typical big 6% real estate commission will indeed save you money, in a big way. PLUS a flat fee MLS listing service gives your home full exposure on hundreds of other national real estate websites, just like a standard 6% commission real estate company will do. But is it worth it or do you get what you pay for?
The Traditional method of selling a home works like this. You hire an agent to sell your property. You agree to pay that agent and their firm a fee to sell your home and complete the transaction. That agent, in agreement with their local board, agrees to share that commission with any agent that brings in a buyer and completes the transaction. Your agent markets your property by using the Multiple Listing Service (MLS). The MLS is a system which acts as a meeting place where buyer and seller agents meet to conduct business and trade buying and selling sources. Once your property is listed in the MLS, your selling agent has agreed to share their commission with anyone who will bring a buyer to the table and complete the transaction.
With a Flat Fee MLS Listing service, the company will list your property in your local realtor MLS system, but you only pay for one side of the transaction, don’t pay a listing agent – you only pay an agent to bring you a buyer. You agree upfront to pay a 2% to 3% commission to an agent that brings you a buyer. This is significantly less than the typical 6%. “Realtors” will contact you directly with your phone number as the contact number. You only pay them if they sell your property at your terms. You also retain the right to sell on your own and pay no commission at all.
Surveys show more than 90% of all homes sold were listed on the MLS. But in addition to the MLS, most Flat Fee MLS listing packages give your property exposure on the Broker MLS Internet Data Exchange (IDX) websites. Your home appears on all of the real estate brokerage websites that display property listing information through the MLS IDX. That’s a tremendous amount of exposure for your property. Millions of home buying customers around the world now have access to your property’s information through the country’s most comprehensive real estate listing databases.
Now that you know how it works, the main difference between the traditional real estate listings and flat fee MLS listings is the amount you will pay. Unlike traditional real estate brokerages, there is no commission due if you sell on your own without a buyer’s broker, you pay only the low, flat fee. An average seller can save between $3,000 to $5,500 per $100,000 of their sales price.
Also consider that most buyers do not have to pay anything to use a real estate agent to help them buy a home. Simply put, a buyer gets to employ a real estate agent for FREE. So why Arizona Flat Fee MLS wouldn’t a buyer use a real estate agent? One of the main reasons why it is important to be listed in the MLS is that you as the seller are implicitly hiring thousands of real estate agents with buyers to sell your home for you.
The added expense of a full service agent hurts your chances of selling in a slow market. In spite of what some agents may claim, it’s your price that is the primary factor that determines your success. With a full service agent you will need to have a higher asking price reducing you competitiveness. Home buyers are normally very immersed in the market and know what is a deal and what isn’t.
Now, when it comes to selecting a flat fee MLS company. you should keep in mind that you want to make sure that the broker has experience providing this service and will continue to provide it in the future. As many people are aware, the sheer number of competing agents leads to tremendous turnover in the industry. Many agents join the industry, dabble in a few different niches with limited success, then drop out when they realize that reality does not match their expectations. So choose a company with staying power.