Flat Fee MLS Listings - Is This The Future Of Real Estate

Realtors are all a buzz about this new form of listing houses on the MLS (multiple listing service). Some feel it creates more work for the buyers agent, while others see this as a way to tap into the For Sale By Owner market.

It use to be when you made the decision to sell your home, you essentially had two methods available to you. You could list your home with a traditional real estate company and pay 6-7% commission or you could try selling on your own "for sale buy owner".

Research shows that nearly 50% of all home sellers start out trying to sell their property on their own. Although some home owners are successful with FSBO, according to the National Association of Realtors (NAR) home seller survey, only sixteen percent of sellers actually sell their home without exposure on the MLS. And many of them end up giving away their commission savings to the buyer to close the deal.

Realtors tend avoid for sale by owner properties because they are working with buyers and have no written agreement to be compensated. If the seller has not agreed in writing to pay a commission to the agent, the buyer could cut the agent right out of the deal and negotiate directly with the seller. It happens....

With flat fee MLS service, the seller has agreed in writing to pay a commission, usually 3%, to the buyers agent. This motivates Realtors to bring the seller a buyer.

How it works:

Real estate commissions by law are negotiable. In a flat fee listing, the listing agent agrees to a flat fee instead of a percentage of the sale price. This can be anywhere from $300-$600 for the service of adding your house to the MLS. Then you choose how much to pay the buyers agent in commission for bringing you a buyer (typically 3%). So in the sale of a $200,000 house you would pay $6,000 plus the flat listing fee, saving a close to $5,700 in commissions. The plus side is in the listing agents contract, the right to continue advertising you house FSBO. So in the event you find a buyer without an agent you save on all commissions and only pay the flat listing fee.

  • What do you get with flat fee MLS listing:

  • Advertise your home on Realtor.com®

  • Market to buyers working with a Realtor® through the MLS

  • Market to Buyers working without a Realtor®

  • Retain your right to sell your property by owner

  • Avoid paying any real estate listing commission by paying a flat rate or fixed fee upfront

  • Only pay a commission if a buyer's agent sells your home

  • Why would a listing agent want to do this?

For real estate agents this can be an opportunity to increase revenue by listing more homes. There are many people who refuse to use realtors because of the 6-7% commissions, but are more than willing to pay 3%. With the increase of internet marketing, realtors can reach more people because all they are offering is to list the house on the MLS. Services are minimal and the listing agent really won't be trying to find a buyer for you, but rely on the buyers agents. This allows them to list properties in a larger area and in some cases in other states.

With the increase of house prices, is the 6% sales commission going to survive or will flat fee listings be the wave of the future. Only time will tell...

About The Author

Richard Massey is a note broker with United Financial Resources and a real estate investor. You can get more information at http://www.unitedfinancialresources.com or to read more articles go to http://unitedfinancialresources.com/news.html

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Forbes

The Most Creative Ways To Find Real Estate Deals For Growing Investors
Forbes
When I started investing in real estate 15 years ago, I was your average broke college kid. I didn't have a ton of money to put into marketing efforts to attract sellers so I could find properties, so it was important to get creative. Learning to ...


Chron.com

Realtors of the Week: Mother, daughter form dynamic real estate duo
Chron.com
Shannon Lester and her daughter, Claire Warren, are both Realtors with Heritage Texas Properties and both have been in real estate for a decade, but they became partners only about three years ago. Since then, they have become a dynamic, ...


Real estate transfers for May 27, 2018
Roanoke Times
Mason, Norman D. and Francis J. Nardi Estate to Taylor H. White and Elizabeth N. White, 5011 Hunting Hills Drive Roanoke VA 24018, $380,000 05/10/2018. Throckmorton, Karen to Christian LaPiello, 5227 Crossbow Circle Roanoke VA 24018, $342,000 ...


New York Times

Keeping Bohemian as Real Estate Prices Soar: The Canada Letter
New York Times
This week a fourth Canadian joined The Times's contingent in Canada. Lindsey Wiebe, who grew up on a farm in Western Manitoba, is our audience growth editor. That means she'll be working with Dan Bilefsky, Catherine Porter and me to help connect more ...


Minneapolis Star Tribune

Twin Cities industrial real estate sector is on the rise
Minneapolis Star Tribune
Tankenoff's leap shows just how far the strong economy has taken the Twin Cities industrial real estate scene. It's attracting not just developers, but end customers and investors from far away. And across the country, the business long thought of as ...


Entrepreneur

How the New Tax Law Affects Your Real Estate Business
Entrepreneur
The Tax Cuts and Jobs Act (TCJA) brings big tax changes to the real estate sector, the likes of which haven't been seen since the Tax Reform Act of 1986. Fortunately, the impact on real estate businesses should be mostly positive. That said, there are ...

and more »

The Real Deal

What this blockchain experiment in Bushwick means for RE investors
The Real Deal
“Real estate has been slow to adopt new technology, and this is bringing energy and excitement, which is welcome in a staid industry,” Cayuga Capital Management's Jamie Wiseman told the Times. The developer and property manager holds a stake in the ...


Sacramento Bee

Ex-real estate titan Lyon heads back behind bars for secret sex tapes
Sacramento Bee
Lyon, 62, the local real estate titan who once lent his name and cash to good works across the region, was sentenced to six years and four months in state prison in Sacramento Superior Court on charges of electronic eavesdropping and videotaping ...


CryptoRecorder

Propy selling prime real estate in ripple (XRP) – Would you trade your XRP for real estate today?
CryptoRecorder
The latest aspect to ripple adoption is in the real estate sector, by a company called Propy. Propy is selling a prime piece of real estate in Silicon Valley, and is accepting payments in crypto specifically bitcoin (BTC), Ethereum (ETH) and Ripple ...
Ripple (XRP) Listed on Apple iOS Stocks App as it Enters the Real ...The Crypto Globalist
XRP Goes Green: Real Estate Signals Green & Apple Adds Support with 12 Currency PairingsCoingape

all 25 news articles »

INSIDE REAL ESTATE: Homeownership is on the rise
Daily Local News
When you've worked in real estate, you'll see a few recurring topics that pop up here and there. One of them is about the shifting marketing. Millennials are not the typical buyers and prefer to rent for extended periods of time. However, recent data ...

Google News

Real Estate Values or Just Bad Habits

There are several small businesses that retain hundred year old... Read More

Real Estate Value: Knowing yours is Key to Mortgage Success

The value of the real estate you own, whether it... Read More

Real Estate Investment - Why it is Big Business?

When examining the different asset classes, real estate is generally... Read More

Tax Deferred Exchanges of Investment and Business Real Estate

The Primary Residence taxation, the Residential Replacement Rollover, Sec. 1034... Read More

Property Investors, Scrub Your Thoughts and Start Again - Brazil, Brazil, Brazil!

Brazil Property - FortalezaThe PlaceWhat to do in a place... Read More

NAR® Broker Will Swear It ? Real Pro? Agents Share It ? FSBO Truth

For posting the "Truth" on your website, some FSBO's will... Read More

Hassle-Free Homebuying

Perhaps you'd like to take advantage of today's great buyer's... Read More

Real Estate Feasibility Study (Cost Side) - $1.2 Billion Developer Tells You How To Do One

There are two sides to real estate development feasibility study:... Read More

Selling Your House Fast!

The physical senses of buyers respond to a home's design,... Read More

Find the Right Apartment Quickly and Easily Using an Apartment Locator Service

You've probably seen the ads or heard about apartment locators.... Read More

Condo-Hotels ? A New Second-Home Alternative to Time Shares

Condo-hotels have evolved as a better, more reliable second home... Read More

Dont Buy Ugly Houses!

Ugly houses can be great investments, but we don't buy... Read More

Preparing To Make A Zero Down Offer

I'm going to focus... Read More

Fixing Houses: Mixing Your Own Paint for Savings and Harmony

To make the maximum profit on your investment properties, you'll... Read More

Conventional Financing For Wholesale Deals

This info is very important for both new and experienced... Read More

Why Selling on Lease Options is Glorified Landlording

I might upset some folks with this one, but that's... Read More

Real Estate Marketing, Do You Use Direct Mail?

Prospecting for leads is by far the most difficult part... Read More

Real Estate Season is Here

Yes, it has finally arrived. This is the time of... Read More

Property in Bulgaria - Huge Investment Potential

Bulgaria is a truly magnificent country, located in Eastern Europe... Read More

Tax Free Exchanges: Watch out for the New Residence Rules

On October 22, 2004, President Bush signed tax legislation that... Read More

Ten Myths Of Real Estate Investing

Is real estate investing only for the wealthy? Can you... Read More

How to Build a Real Estate Investing Power Team

As you continue to read about real estate investing, you... Read More

Real Estate Investing Myths That Steal Profits From Your Pocket

One of the things that distresses us about our industry... Read More

4 Dangers In Flipping Real Estate

If you have recently purchased some real estate for investment... Read More

Real Estate Investment Requires A Team

I had a hard time at first with real estate... Read More