All Forum Posts by: Jonathan Minerick

There are a ton of flat fee MLS services out there. The best advice is Googling "Flat Fee MLS + your city" and then checking their reviews (yelp, etc). Not that not all flat fee listings are the same. In general, here's the big things you want to look for in a flat fee listing:

1. The listing MUST be on the local MLS.

There are hundreds of MLSs in the United States. Sellers want to be on the MLS that covers the area where their home is located, so they can offer a commission to LOCAL buyer agents.

2. Cost to list + changes to listing.

Can range from $100-$400 for the exact same listing on the MLS. Watch out for fine print that requires an additional fee at closing. Make sure you are able to make changes to the listing after it has been posted for a nominal fee.

3. Photos on MLS.

Make sure you can upload at least a dozen photos. Some services offer a great price, but it's only for 1 photo - which is not useful for most properties.

4. Length of Listing.

Get at least a six month listing and be sure that there is no charge for cancellation.

5. Fine print.

You should never be required to use any closing service (e.g. escrow) provided by the flat fee service agent.

We've found that a home selling boils down to getting just three things right 1) get pro photos, 2) offering a fair buyer agent commission on the MLS(typically 2.5%), and 3) price it right, which you'll know once you list (lots of offers = too low, no offers = too high. Either way you can adjust accordingly).

There are a ton of flat fee MLS services out there. The best advice is Googling "Flat Fee MLS + your city" and then checking their reviews (yelp, zillow, etc). Not that not all flat fee listings are the same. In general, here's the big things you want to look for in a flat fee listing:

1. The listing MUST be on the local MLS.

There are hundreds of MLSs in the United States. Sellers want to be on the MLS that covers the area where their home is located, so they can offer a commission to LOCAL buyer agents.

2. Cost to list + changes to listing.

Can range from $100-$400 for the exact same listing on the MLS. Watch out for fine print that requires an additional fee at closing. Make sure you are able to make changes to the listing after it has been posted for a nominal fee.

3. Photos on MLS.

Make sure you can upload at least a dozen photos. Some services offer a great price, but it's only for 1 photo - which is not useful for most properties.

4. Length of Listing.

Get at least a six month listing and be sure that there is no charge for cancellation.

5. Fine print.

You should never be required to use any closing service (e.g. escrow) provided by the flat fee service agent.

We've found that a home selling boils down to getting just three things right 1) get pro photos, 2) offering a fair buyer agent commission on the MLS(typically 2.5%), and 3) price it right, which you'll know once you list (lots of offers = too low, no offers = too high. Either way you can adjust accordingly).

@Phil Z. The MLS forms are for entering the property into the MLS and are not related to the actual contract + disclosure forms published by the state Association of Realtors®

@Karen Seale I'm sure you've sold by now, but First Tuesday has free, fillable forms available. If you find they are too much to deal with alone, a good transaction coordinator is always helpful.

@Alan J Mowder Don't forget about the middle ground between FSBO and Agent - that being "Flat Fee MLS", where you get the benefits of listing on the MLS (exposure, offer commission to buyer agents, etc) without the big listing fee that comes with a traditional agent. A transaction coordinator can also be very valuable as they will make sure you get all the correct paperwork done for a small fee ($400).

@Ashley Wise @Brian Pulaski @Chris Jensen The numbers from NAR consider Flat Fee as an agent, not as FSBO. It would be impossible for NAR to understand the contract between the seller and agent based on the data in the MLS.

Also, the fact by NAR is well known to be misleading "the average FSBO sales price was $185,000, while the average price for a home represented by an agent was $245,000" makes one think that agents will get a seller $60,000 more for the same home. 

If that were true, we could all go around buying FSBO homes and then relisting them with an agent for a nice profit - you'd be rich within a year.

The truth is that: 

1) FSBO homes are typically way overpriced, and

2) Lower priced homes (mobile or located in rural areas) are more likely to list FSBO. This is acknowledged in the NAR data. This skews the numbers greatly as it's not an apples-to-apples comparison. http://www.realestatedecoded.com/do-real-estate-agents-really-sell-homes-for-13-percent-higher-prices/

@Chris Jensen Here's a the issue with doing FSBO:

1. Prior to showing the home their buyer, the agent would have to draw up the paperwork which guarantees the seller pays the commission. The agent doesn't even know if their buyer wants to put an offer on the place. If the buyer doesn't, then the agent just wasted a bunch of time.

2. The agent could show the home, and the buyer could love it - but now the agent has put themselves into a terrible negotiating position with the seller. 

The nice thing about the MLS, regardless of whether you do a flat-fee or full-service listing, is that there is a contractual guarantee of commission. It just removes that hurdle and time to negotiate. If the seller is sincere about offering a commission, then they should just do so on the MLS - by not doing so it sends a mixed message and creates a future time investment.

@Account Closed While I haven't run the numbers on each MLS we are a member of in California, I would believe the 1 out of 3 not selling to be an accurate number.

Don't forget the middle ground of "flat fee MLS". You list on the MLS for an upfront fee (e.g. $150) and on the MLS you offer a fair commission to buyer agents.

Then you simply look at the offers that arrive. The offers that come from agents you factor in the commission, and the offers that come from buyers without agents you don't. Whichever offer nets you the most, wins. 

Use a transaction coordinator to make sure you have all the right disclosures and they paperwork is filled out correctly.

By doing this you get the huge marketing benefits of the MLS, and all the websites the MLS syndicates to (realtor.com, zillow, redfin, etc), but you still have the flexibility to accept the offer the nets you the most money (be sure to read your listing agreement carefully).

@Jonathan Bowen Yes, but if the listing agent is providing the MLS forms to the seller, the responsibility for providing the correct information for a "entry only" listing falls on the seller.

If the seller decides to not provide complete info or use their 0 megapixel instant camera for the photos, that is on them. Smart sellers provide complete information (they almost always know more about the house than an agent) and they get professional photography.

Also, in all fairness some of the listings that are done by real estate agents can be downright awful. I know you've seen them as well. The professional agents do a great job, but it's shocking that some listing agents are getting paid for some of the work we've all seen. http://terriblerealestateagentphotos.com/