Flat Fee MLS service/ has anyone used this?

Rehabbing & House Flipping
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Flat Fee MLS service/ has anyone used this?

Michael Clevenger
Investor · Arlington, TX · Member since 2016 · 99 posts · 29 votes

I have almost completed my first flip. Found information on flat fee MLS listing services. Appears to be a service that is commonly used however I have never heard of it until recently.

Does anyone have personal experience with this type of service VS using traditional methods? If so please tell me your story!

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Ryan Monier
Rental Property Investor · Covington, LA · Member since 2016 · 54 posts · 17 votes
10y

I've used a flat fee service for 90% of my flip houses and have had no issues.   They sell just as fast as houses listed by a traditional realtor in my market!

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  • Jorge Zea
    Boca Raton, FL · Member since 2016 · 145 posts · 67 votes
    10y

    This is the recommended (at least by me) method for knowledgeable individuals that know what they are doing and feel comfortable selling the property. You pay a flat fee for the Flat Fee (range of prices out there but most are around $300 and some very good ones as low as $99) listing company to post your property on the MLS and syndicate it through the Internet. You do the job of the listing agent and save (at least) that portion of the commission. For investors and flippers (specially if using leverage) a 3% saving in commission represents a much larger % in the Cash on Cash - rationale: commissions come out directly of your equity but are calculated on the total sales price (leveraged portion + equity). No brainer - do it with a reputable Flat Fee Broker. Google for a good one that is actually a Broker licensed in your state that has a lot of listing (ask for a list of properties listed) - do not use a referral service.

    Good luck!

    1Reply
  • Eugene Kemp
    Ormond Beach , FL · Member since 2015 · 345 posts · 223 votes
    10y

    My son just used it. He was a bit disappointed with some aspects, but I  don't  know the details. PM me with your email and I can ask him to contact you directly if you like.

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  • Michael Clevenger
    OP
    Investor · Arlington, TX · Member since 2016 · 99 posts · 29 votes
    10y

    @Jorge Zea

    Thank you for the information! I think this is the way to go and I'm glad to find someone who recommends this method. Due to the limited knowledge (my first flip) I'll be utilizing the higher flat fee package (1K). The broker will be more involved and includes such things as professional pictures. Even this fee is far less than the traditional 3%. 

    I like your company logo, the layout is nice!  

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  • Michael Clevenger
    OP
    Investor · Arlington, TX · Member since 2016 · 99 posts · 29 votes
    10y

    Thanks @Eugene Kemp !

    0Reply
  • Jorge Zea
    Boca Raton, FL · Member since 2016 · 145 posts · 67 votes
    10y

    Thanks Michael.

    Good luck!

    0Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    10y

    I am a Real Estate Broker who flips homes all over Texas and have used the service of flat fee Brokers many times. Some times it is just cheaper than joining the MLS myself as there is 20+ MLS systems in Texas. Saying that , you need to be knowledgeable and understand contracts, be able to interact with agents and buyers alike

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  • Chance Housos
    Investor · Sachse, TX · Member since 2015 · 223 posts · 66 votes
    10y

    I have used the flat fee listing agent before. I recommend making sure you hire a professional photographer for pictures. 

    Another option is to call a few realtors that work a lot in the area and tell them about your property. Let them know that you are not looking for a listing agent but if they bring you a buyer before you list it you will pay them 4% to work both ends of the deal. It may cost extra but you may be able to build some relationships with more agents.

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  • Tamara Elliott-Deering
    Real Estate Agent · Cedar Creek, TX · Member since 2010 · 161 posts · 63 votes
    10y

    I have used a flat fee service as well. It worked for me because I'm a Realtor and familiar with the marketing of the properties. Remember you will be on the hook for handling all of the communications with potential buyers, think of a flat fee service as For Sale By Owner plus. You're still doing all the work you just get the bump of being on MLS.

    I just heard of this service Listing Spark that lists your properties for $7 a day. I've never used them but they claim that they'll provide an electronic key box and take pictures for you. If you haven't signed a contract you may want to look at them.

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  • Jake Thomas
    Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
    10y

    Flat fee works well if you understand the process and how to handle calls from buyers and buyers agents. Also, you will have to know how to navigate all the paperwork as the broker that lists the property is basically only putting on the MLS then it is hands-off from there.

    You could just get your license if you are going to flip properties often, being able to list your own and manage the transaction is worth the savings. 

    0Reply
  • Jorge Zea
    Boca Raton, FL · Member since 2016 · 145 posts · 67 votes
    10y

    As mentioned by @Tamara Elliott-Deering Listing Spark is ONLY licensed in Texas (so you might be able to use them) and they do it for $7/day. But consider that in average properties take 90-120 days to go under contract and 30-45 (in a normal sale) to close afterwards so at least you will be in for 120 days - that is $840. 

    The $7/day is a teaser rate and investors like our BP population will be able to look through it. Search for Flat Fee Listing services that can really do it for a Flat Fee for a set amount of time. You will be able to find reputable Brokers for $300-$1,000 - 

    The system is not for everyone, but BP members have a deeper knowledge of the process that the traditional homeowner (that's why we are all here). You will be doing the job of the Listing Agent .... but, in my opinion, it is the Buyer's agent who will do most of the legwork (contract, deal with lender, appraisals, inspections, title company, clients, etc) ... just make sure you have either a Real Estate attorney (on a flat fee basis too) and/or a title company on your side.

    You can do it!! and you will boost your Cash on Cash

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    Im an agent, so I dont use these services which should be obvious. But even with my out of state properties, I utilize an agent.  Since I am an agent, I think I recognize a lot of the pitfalls that await someone trying to do it on their own. @Jorge Zea makes the great point the people who do this are knowledgeable individuals.  That is very few people though. Understanding pricing strategy, proper staging, knowing what buyers are looking for, understanding how to properly follow Fair Housing Laws (This is probably the biggest thing I see people screw up on), follow all laws applicable to real estate, understand contract terms (Remember what is in a contract often means something completely different to the laymen than to the courts) (Even further what court you end up in interprets real estate contracts different than standard contracts, and knowing how to communicate to the judge what is common in the market place verse the court that doesnt deal with the issue often),. eetc. Well you get the point.

    Well you get the point. Ive been an agent for 13 years, and I would never attempt to do a flat fee in a state Im not licensed, because I know if I were doing a deal in Texas or NY or California or someplace else, Id get myself into trouble even as an experienced real estate professional.

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  • Scott W.
    Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    10y

    I used it; went great.  got text or courtesy calls from agents to see the property. I had a buddy who couldn't sell his $400k property so he tried my fee only agent and lowered the price. gone in a week.

    at the end of the day, it's all about the price. 

    I just used an attorney to review all of the paperwork (which you should whether using an agent or not). piece of cake.

    1Reply
  • Jorge Zea
    Boca Raton, FL · Member since 2016 · 145 posts · 67 votes
    10y

    @Scott W.'s story is repeated over and over again with Flat Fee MLS listing services. Always use an attorney as he mentions.

    Again, not for everyone; but for thise that know they can coordinate it, it is a no brainer. Do the numbers and compare you cas on cash with and without listing agent' commission. You cash on cash is affected disproportionately by a 3% commission.

    0Reply
  • Michael Clevenger
    OP
    Investor · Arlington, TX · Member since 2016 · 99 posts · 29 votes
    10y

    WOW, So much information! This is my second day on BP and I'm very pleased with the community. I feel bad as being a newbie I'm asking questions but have no answers for others.

    Perhaps I got lucky however I've found a Flat Fee service that includes most of the concerns mentioned. The 1k includes "professional" pictures as well as handling any potential buyers/agents and negotiation. My understanding is they take care of everything including the sign & key box. They have other cheaper services that do not include as many services.  

    I did not think about hiring an attorney however I'll look into this. Better save than sorry!

    Thank you all! Special thanks to @Jorge Zea @Scott W.& @Tamara Elliott-Deering

    0Reply
  • Brian Pulaski
    Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    10y

    I have done flat fee services for my two completed flips. The first one went well, so I did it again. The second house sold in 2 days and being every showing had an agent, I never even had to show the house. My lawyer reviews any offers, and I save the 2.5-3% on my end.

    0Reply
  • Harry Lemont
    Rental Property Investor · Nashville, TN · Member since 2016 · 5 posts · 1 vote
    10y
    As a real estate agent, these services can really frustrate me. In the last week alone I have wasted hours of work on listings that have not been updated correctly. When done well it can really help an investor. However, it can make you look less honorable to the other folks in this field when your property is listed wrong or even worse not available and not updated. Make sure you are working with a company that keeps there flat fee listings up to date, because many of them will just post it and leave it. Agents don't like out of date information, and investors don't like unnecessary phone calls, upset customers, and a bad unprofessional rep. Just make sure your agent posting the information is on top of their game. Better yet be on their game for them.
    0Reply
  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
    10y
    I have used a very good flat fee MLS company that services my region for $99+additional services like 30 pics, call to show,etc. As others mentioned it is a good deal only if you know the process, are familiar with the contracts, agent lingo and pricing strategy. Professional pics make a big difference, but price rules. The first 2 weeks will be the busiest usually.
    0Reply
  • Jorge Zea
    Boca Raton, FL · Member since 2016 · 145 posts · 67 votes
    10y

    @Brian Pulaski: how much does the service you use in CT charge? What is the name of the brokerage?

    0Reply
  • Brian Pulaski
    Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    10y

    @Jorge Zea the one I use ends up costing me $450. Base price is $299 but then I choose a couple of "ad ons". It's entryonly.com.

    0Reply
  • Michael Clevenger
    OP
    Investor · Arlington, TX · Member since 2016 · 99 posts · 29 votes
    10y

    @Harry Lemont / One would assume that staying on top of not only present properties but closing out sold as well is all part of the job. I guess not! This will give me something to look at prior to choosing my professional. THANK YOU!

    0Reply
  • Matthew B.
    Investor · Howey in the Hills, FL · Member since 2013 · 376 posts · 114 votes
    10y

    Flat fee MLS listings are a no-brainer for all but the most inexperienced sellers. Make sure you list with someone who is actually a licensed broker with MLS access in your area. There are a lot of national companies out there who are simply middlemen and refer your listing to a local broker. If you go straight to the broker you'll typically get a better price and better service. Also, be wary of the up-sells. Some brokers will advertise a low rate but once you add up all of the additional services you're spending $500.

    2Reply
  • Jorge Zea
    Boca Raton, FL · Member since 2016 · 145 posts · 67 votes
    10y

    Follow @Matthew B. guidelines and you will be OK. 

    Google for "Flat Fee MLS + you location" and you should get several. Call and compare. Due diligence is important as always.

    2Reply
  • Ryan Monier
    Rental Property Investor · Covington, LA · Member since 2016 · 54 posts · 17 votes
    10y

    I've used a flat fee service for 90% of my flip houses and have had no issues.   They sell just as fast as houses listed by a traditional realtor in my market!

    3Reply
  • Michael Clevenger
    OP
    Investor · Arlington, TX · Member since 2016 · 99 posts · 29 votes
    10y

    @Matthew B.

    Thank you all for the information! BP has helped me connect with a licensed broker in my area. We are scheduling a meeting at the property for further review.  

    BP is AWESOME! I'm gathering tons of information from you guys!

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