Pros and cons of using a flat fee MLS listing service
Pros
The benefits of using a flat fee MLS listing service in your FSBO sale include:
- Eliminating the listing agent commission (typically 2.5% to 3%).
- Gaining control over your home sale from start to finish.
- Paying a pre-determined, upfront fee, rather than a commission based on the final sale price.
- Getting your home listed on the MLS and syndicated to third-party home search websites.
- Expanding exposure to traditional buyers and their agents.
Cons
The potential drawbacks of using a flat fee MLS service include:
- Still need to offer a commission to the buyer’s agent.
- Being responsible for handling negotiations and potential deal delays.
- Managing the process without the guidance of a local expert.
- Increased risk of liability and legal issues.
- The possibility of selling for less than you would with an experienced real estate agent.
How do I list my home with a flat fee MLS service?
Once you’ve decided to use a flat fee MLS service, follow these steps to get your FSBO home listed on the MLS:
Step 1: Research flat fee MLS services
Compare local providers, their packages, and pricing. Read reviews on Google and check the company’s reputation with the Better Business Bureau. Verify how many photos you can upload, what forms are included, and if additional services cost extra.
Step 2: Register and choose a plan
Sign up on the provider’s website, select your desired package, and pay the upfront fee.
Step 3: Enter your property details
Fill in the necessary information about your home, including a compelling listing description and high-quality photos. If required, complete the necessary disclosure forms.
Step 4: Review and sign your listing agreement
Carefully read the listing agreement to ensure you understand the terms, including cancellation policies and potential additional fees.
Step 5: Confirm your MLS listing is live
Once your listing is active on the MLS, verify its accuracy. It may take a few days for the listing to appear on major home search websites. Review your listing to ensure all details are correct, and contact the service provider if updates are needed.
Are flat fee MLS listings effective in Huntsville?
A flat fee MLS listing can be an effective way to market your Huntsville home because most buyers begin their search online. The MLS feeds listings to major home search websites, ensuring maximum exposure. Additionally, buyer agents use the MLS to find properties for their clients, making it one of the best tools for reaching serious buyers.
However, an MLS listing alone doesn’t guarantee a sale. FSBO sellers must still price their homes competitively, market it effectively, and handle negotiations to close the deal successfully.
Alternatives to flat fee MLS services in Huntsville:
If a flat fee MLS service isn’t the best option for your home sale, here are some alternatives to consider:
- A flat fee real estate agent charges a set rate instead of a commission, typically between $3,000 and $5,000. Some agents offer additional services at an extra cost, making this a good middle ground between FSBO and full service. Learn more about a flat fee real estate agent.
- A discount real estate broker works for a reduced commission rather than a flat fee. While this option costs more than a flat fee MLS service, it often includes professional marketing and negotiation assistance. Explore the pros and cons of a discount real estate broker.
- A low-commission agent offers traditional real estate services at a lower rate, helping sellers save money while still receiving key support, such as pricing strategy and transaction coordination. See if working with a low-commission agent is the right choice for you.
- A full-service local real estate agent provides expert pricing, marketing, negotiation, and transaction management. While this option comes with a commission fee, an experienced agent can often help you sell faster and for a higher price. Find a full-service local real estate agent in Huntsville.
Will I save money with a flat fee MLS listing service?
While a flat fee MLS service can help you save on real estate commission, you might make less overall. Research from the National Association of Realtors shows that FSBO homes sell for nearly 14% less than agent-assisted sales. The median sale price of FSBO homes was just over $380,000, compared to $435,000 for homes sold with an agent.
Additionally, nearly 40% of FSBO sellers reported selling to a friend or neighbor, and in those cases, homes sold for even less—around $345,000. While a flat fee MLS service offers MLS access at a lower cost, FSBO sellers must weigh the potential savings against the risk of selling for a lower price.
