The real story with flat fee MLS and why it works
Flat fee MLS is the most cost effective way to sell a home. GetMoreOffers.com is a flat fee MLS service that connects FSBO and others seeking a discount listing on the MLS with the agents that have most of the buyers. Local agents exclusively use the MLS to search for homes. Flat fee MLS gets your home in your local MLS where 86% of all buyers in your local market will be using a Realtor to buy. For Sale By Owners can now access MLS through discount MLS brokers on GetMoreOffers.com.
Flat fee MLS is a listing in the MLS that is managed by a discount MLS broker and controlled by the home owner. The home owner sets price and what commission they choose to offer to a buyer's agent. With flat fee MLS, there is no listing commission; just a flat fee paid up front to the listing discount MLS broker. Most traditional agents charge 6% to sell a home, of which they offer 3% to any agent that sells the home (called co-brokerage). With flat fee MLS, the seller offers just the buyer's agent a commission and the listing commission gets replaced by a flat fee.
The reason why flat fee MLS works well with agents is because agents will show a flat fee listed home along with other traditional listings because they get paid the same amount regardless of which home they sell.
Some agents would say dealing with a by-owner or flat fee MLS seller is more difficult because there is no traditional listing agent to assist in the negotiations, inspections and closing process…unless the flat fee MLS plan includes representation, which is available with our flat fee MLS listing plan Professional ADDvantage™.
The answer to that occasional complaint from Realtors is, "Hogwash!" Agents are at a huge advantage when negotiating against a by owner “FSBO” because most agents have been in many negotiation situations and likely posses a professional advantage over the FSBO seller.
Not all agents are professional though. In real estate, 90% of the sales are done by 5% of the agents. Some agents are so good you better hold on tight to your home/wallet because if they are eager get your home under contract, it will be over before you know it. While other agents can be much the opposite and you'll be babysitting them to get the deal closed.
Smart professional agents know exactly what to do when working with by owner flat fee MLS. Get the deal written up, close it and get paid a commission. That's why any complaints are “hogwash!”
There is only one reality in real estate whether we are referring to flat fee MLS, exclusive listing agents or exclusive buyer's agents and that's pay day. Pay day is a victory for any agent, regardless of how it happens.
The biggest drawback to being unrepresented or flat fee MLS in a real estate transaction is getting railroaded or misguided advice. The other side of that coin is most flat fee MLS unrepresented sellers are savvy or they wouldn't be selling their home using flat fee MLS to begin with. But, be careful when pricing your home as well.
Pricing a home too low will result in a sale almost immediately as the market is very smart about finding under-priced listings and will get you under contract immediately. Being over-priced is not as bad but will cost you time and possibly money as well.
The best way to price a home when listing flat fee in the MLS may be found listening to the “How to Price a Home” video on GetMoreOffers.com.
Getting a home priced right is a skill. Knowing when to drop a price is even more critical. With our Professional ADDvantage™ plan, the flat fee MLS broker watches lead flow, offer history and speaks with all buyers and Realtors who are considering making an offer so the broker is aware of all buyer action. If you don't have this information, you can't make a decision about how to best negotiate or when the best time to drop a listing price is. This is where having guidance and coaching from a knowledgeable broker is helpful.
The art of negotiating a contract is a combination of knowledge and patience. Getting the most for your home is about knowing exactly where the market is and having the patience to find the best suited buyer.
Some by owners have this skill and some do not. If you find yourself believing that your interests would be best served by having a professional broker represent you, then please consider Professional ADDvantage™ as the most cost effective approach to selling a home flat fee without giving up control and still saving 40% over a traditional listing.
This article is filed under Flat Fee MLS. View other articles in Flat Fee MLS.