Since the downturn in the housing market, more and more home sellers have turned to flat-fee mls listing. Flat fee mls listing gives home sellers a low cost alternative to traditional real estate brokerage commissions allowing them to keep more of their home’s equity. Additionally, flat fee mls listing provides maximum marketing exposure for “for sale by owner” (FSBO) sellers who don’t have direct access to the market the real estate.

Flat Fee MLS Listing is a term describing the listing of property for sale or lease in the Realtor® Multiple Listing Service (MLS) by a state licensed, member real estate broker for a flat fee instead of the traditional method of paying a real estate agent or broker a typical 6% commission to list the home. Sellers who list using flat fee mls do not genereally receive other brokerage services, such as having an agent hold Open Houses, or negotiate real estate contracts. The flat fee is paid or marketing the property rather than for a suite of brokerage services.

Home sellers who have some familiarity with the home selling process have experienced success using flat fee mls listing. Even novice sellers who are willing to do some research and preparation have experienced the tremendous savings afforded by this alternative brokerage model. As long
as the seller is prepared to be 1) realistic with their pricing 2) take the condition of the property seriously and 3) make the property easy for agents to show, then the odds of finding a buyer for the property are just as good, and in some cases better, than property listed by traditional means.

Similar to classified advertising in some ways, flat fee MLS listing is a pathway to exposing a property for sale to the public where potential buyers have a better chance of finding the home. The difference is that the MLS has long been the market for real estate. Home buyers still find advantage to using a real estate agent when searching, viewing and purchasing property. Agents provide a valuable service by aggregating and evaluating properties that meet the buyers needs and interests, arranging showing appointments and schedules, assisting in determining an offer price and preparing and negotiating an purchase contract. These agents rarely show properties that are not listing in the MLS. The reason is that the MLS association ensures the agent of their compensation. Properties listed in the MLS must state the amount of compensation that an agent will be entitled to once a ready, willing and able buyer is found.

Sellers have agreed, in writing, that as a condition of listing in the MLS, they will pay a buyer’s agent fee for the sale. This amount is typically 3% but many flat-fee sellers have offered more or less depending on such factors as 1) the saleability of the property 2) market conditions 3) competion and 4) motivation to sell. Even at this rate the typical seller of a $500,000 house can save approximately $14,500. But what’s even better is that with flat-fee MLS listing, unlike traditional real estate brokerage, the seller retains the right to sell to a buyer who may come to them directly without a buyer and pay no commission at all. In that case, our seller just saved over $29,000!

It seems that flat-fee MLS listing may have come just in time for many of today’s home sellers. In a “flat” real estate market, equity becomes even more importatn than ever. Flat fee MLS listing lets you keep more of it.