Selling a home can be an expensive process due to real estate fees, including agent commissions. However, with the rise of flat fee MLS services, sellers now have an alternative that allows them to list their property on the Multiple Listing Service (MLS) without paying traditional commission fees. In this comprehensive guide, we will explore how flat fee MLS listings work, the advantages they offer, and how they can save sellers thousands of dollars in commission fees while still gaining access to real estate professionals and potential buyers.

What Is a Flat Fee MLS Service?

Definition of Flat Fee MLS Service

A flat fee MLS service is a listing service where home sellers pay a fixed fee to have their property listed on the MLS. The MLS is a database used by real estate agents to share property listings with other agents and buyers. Traditionally, only licensed real estate agents could list properties on the MLS. However, with flat fee services, sellers can access the same platform for a lower cost, without hiring a full-service agent.

How Flat Fee MLS Services Differ from Traditional Agents

The main difference between flat fee MLS services and traditional agents lies in the cost structure. Another cost-saving option is using a discount real estate broker, who offers services for a reduced commission or flat fee. Traditional agents charge a percentage of the home’s sale price, typically around 5-6%. In contrast, flat fee services charge a one-time, fixed fee to list the property on the MLS, allowing sellers to save a significant amount on commission costs. However, unlike traditional agents who provide comprehensive support throughout the selling process, flat fee MLS companies offer more limited services.

The Benefits of Using a Flat Fee MLS Service

Save Thousands on Real Estate Commissions

One of the biggest advantages of using a flat fee MLS service is the potential to save thousands on real estate commissions. In a traditional real estate transaction, sellers pay a commission to both the listing agent and the buyer’s agent. With a flat fee service, sellers pay a fixed fee to list the property, often saving them thousands of dollars in commission fees.

For example, if a home sells for $400,000 and the total commission is 6%, the seller would typically pay $24,000 in commission fees. With a flat fee MLS listing, the seller might only pay $500 to $1,000 for the listing, plus the buyer’s agent commission, resulting in significant savings.

Get Access to the MLS and Maximum Exposure

The MLS is the primary platform where real estate agents and buyers find properties for sale. Listing your home on the MLS gives it the same exposure as homes listed by traditional agents. Listings on the MLS automatically appear on major real estate websites like Zillow and Realtor.com. When you use a flat fee MLS service, your property is visible to a wide audience of buyers and agents, increasing the chances of a quick sale.

Flexibility in the Selling Process

Sellers who use flat fee MLS services have greater control over the selling process. Instead of relying on a full-service agent to manage the entire sale, sellers can choose the specific services they need. This might include assistance with negotiations, pricing assistance, or help with managing listings. Many flat fee companies also offer additional services such as professional photography, virtual tours, and open house scheduling for an extra fee.

Pay Only for the Services You Need

One of the significant advantages of using a flat fee MLS listing service is the ability to pay only for the services you need. Unlike traditional real estate agents who charge a fixed commission, flat fee MLS services allow you to customize your package and pay for only the services that are essential to your home-selling process.

This approach can be particularly beneficial for sellers who are experienced in managing their own sales or have a good understanding of the local real estate market. By paying only for the services you need, you can save thousands of dollars in real estate commissions and still get your home listed on the local MLS.

Some flat fee MLS services offer à-la-carte services, such as pricing assistance, lockboxes, yard signs, and marketing materials. This allows you to pick and choose the services that are most relevant to your needs and budget.

How Does a Flat Fee MLS Listing Work?

The Listing Process Explained

The process of listing a home with a flat fee MLS service is straightforward. Here’s how it typically works:

Choose a Flat Fee MLS Company: Sellers start by selecting a flat fee MLS company that operates in their state or region. It’s important to choose a company with a good reputation and responsive customer support.
Set the Listing Price: Sellers set the listing price for their home. Some flat fee services offer pricing assistance to help sellers determine the best price for their property based on a comparative market analysis (CMA).
Sign a Listing Agreement: Even though sellers are not working with a traditional agent, they still need to sign a listing agreement with the flat fee MLS company. This agreement outlines the terms of the service and the duration of the MLS listing.
Submit Property Details: Sellers provide the necessary property details, including photos, descriptions, and any relevant information about the home. Some flat fee MLS services offer professional photography as part of their packages.
MLS Listing Goes Live: Once all the information is submitted, the flat fee MLS service will list the property on the MLS, making it visible to real estate agents and potential buyers.

Managing Inquiries and Showings

While the property is listed on the MLS, sellers are responsible for handling buyer inquiries and scheduling showings. Some flat fee MLS companies offer an online showing service to help sellers manage appointments more easily. Sellers also have the option to conduct open houses and private showings themselves.

What to Expect from a Flat Fee MLS Listing

When you use a flat fee MLS listing service, you can expect to get your home listed on the local MLS for a fixed fee. This fee typically ranges from $100 to $400, depending on the service provider and the level of support you require.

In addition to the MLS listing, you may also get access to other services, such as online listing management, basic support, and disclosure forms. Some flat fee MLS services may also offer upgraded packages that include additional features, such as professional photography, social media marketing, and lockbox access.

It’s essential to note that flat fee MLS services are not a replacement for a traditional real estate agent. While they can help you save money on commissions, they may not provide the same level of support and expertise as a full-service agent.

Included Services

When you use a flat fee MLS listing service, you can expect to get the following services included:

MLS listing: Your home will be listed on the local MLS for a fixed fee.
Online listing management: You’ll have access to an online platform where you can manage your listing, including uploading photos and updating your listing description.
Basic support: You’ll get basic support from the flat fee MLS service, including assistance with listing changes and cancellations.
Disclosure forms: You’ll get access to disclosure forms that are required by law in your state.

Some flat fee MLS services may also offer additional services, such as:

Professional photography: You can get professional photos taken of your home to enhance your listing.
Social media marketing: Your listing will be promoted on social media platforms to attract more buyers.
Lockbox access: You’ll get access to a lockbox that allows buyer’s agents to show your home.

Improving Your MLS Listing

To improve your MLS listing, consider the following tips:

Write an engaging listing description: Your listing description should be clear, concise, and compelling. It should highlight the best features of your home and attract potential buyers.
Provide a competitive buyer’s agent commission: Offering a competitive buyer’s agent commission can attract more buyer’s agents to show your home.
Get professional quality photos: Professional photos can enhance your listing and attract more buyers.
Price your home right: Pricing your home correctly is essential to attracting buyers. Consider getting a comparative market analysis (CMA) to determine the best price for your home.
Invest in home selling tools: Consider investing in home selling tools, such as a home staging kit or a virtual tour, to enhance your listing and attract more buyers.

Photos on MLS

Photos are an essential part of your MLS listing. They can help attract potential buyers and showcase the best features of your home. Here are some tips for taking great photos for your MLS listing:

Use good lighting: Good lighting can make your photos look more appealing. Consider taking photos during the day when the light is soft and natural.
Use a good camera: A good camera can make a big difference in the quality of your photos. Consider investing in a high-quality camera or hiring a professional photographer.
Take multiple photos: Take multiple photos of your home from different angles. This will give potential buyers a better sense of your home’s layout and features.
Edit your photos: Edit your photos to make them look more appealing. Consider using photo editing software to enhance the colors and contrast of your photos.

By following these tips, you can create a great MLS listing that attracts potential buyers and helps you sell your home quickly and efficiently.

Pros and Cons of Flat Fee MLS Listings

Pros

Significant Savings on Commission Fees: By using a flat fee MLS listing, sellers can save thousands on commission fees while still getting access to the MLS.
More Control Over the Selling Process: Sellers have the flexibility to choose the services they need and handle negotiations and showings themselves.
Access to the MLS: Even without a full-service agent, sellers can list their property on the MLS, ensuring it gets the same exposure as homes listed by traditional agents.

Cons

Limited Services: While flat fee MLS companies offer MLS listings, they often provide limited services compared to traditional agents. Sellers are responsible for many aspects of the sale, including buyer inquiries, showings, and negotiations.
Upfront Costs: Flat fee MLS services typically require payment upfront, even if the home doesn’t sell.
No Negotiation Support: Many flat fee services do not offer assistance with negotiations, which can be challenging for sellers who are inexperienced with real estate transactions.

Choosing the Best Flat Fee MLS Company

Factors to Consider When Choosing a Service

What is the best flat fee MLS listing service? The answer depends on individual needs, experience in selling, and the range of services offered by various platforms.

When selecting a flat fee MLS service, sellers should consider several factors:

Coverage Area: Ensure the flat fee MLS company operates in your state and has access to your local MLS. Not all flat fee services cover all regions, so it’s important to confirm their coverage before signing up.
Service Packages: Look at the different packages offered by the company. Some services may include additional features like professional photography, unlimited listing changes, or online showing management. Consider what services you need and choose a package that fits your budget.
Customer Reviews: Read reviews from other sellers to gauge the quality of the service. A good flat fee MLS company will have positive reviews and a reputation for responsive customer support.
Hidden Fees: Some flat fee MLS services advertise low prices but may charge additional fees for services like listing updates or additional marketing tools. Be sure to read the fine print and understand the full cost before committing.

Best Flat Fee MLS Listing Companies

Here are some of the best flat fee MLS companies based on customer reviews and service offerings:

Clever Real Estate: Known for offering a variety of services, including MLS listings and pricing assistance, Clever Real Estate is a popular choice for sellers looking to save on commissions.
FSBO.com: Ideal for FSBO sellers, FSBO.com offers flat fee MLS listings along with tools for managing the home sale process, such as online showing scheduling and buyer inquiries.
Houzeo: This platform offers comprehensive services for sellers, including MLS listings, professional photography, and the option to manage buyer agents and inquiries online.

Alternatives to Flat Fee MLS Listings

For Sale By Owner (FSBO)

For Sale By Owner (FSBO) is a method where sellers list and sell their property without using a real estate agent. This option allows sellers to avoid paying both the listing agent’s and buyer’s agent’s commission, potentially saving them even more money than using a flat fee MLS service. However, FSBO sellers do not get access to the MLS unless they use a flat fee service, which can limit exposure to potential buyers.

Discount Real Estate Brokers

For sellers who want some assistance but still want to save on commission fees, discount real estate brokers offer a middle ground. Changes to real estate fees nationwide, following an antitrust lawsuit, are encouraging more sellers to consider cost-effective options like flat fee MLS services. These brokers provide limited services for a lower commission, typically around 1-3%, compared to the 5-6% charged by traditional agents. While discount brokers may not offer the same level of support as a full-service agent, they can still help with the listing process, marketing, and negotiations.

Selling FSBO vs. Using a Flat Fee MLS Service

When deciding whether to sell FSBO or use a flat fee listing service, it’s important to weigh the pros and cons of each approach. FSBO sellers have complete control over the selling process, but they miss out on the benefits of an MLS listing, which can limit their property’s visibility. Using a flat fee listing service allows sellers to maintain control while still accessing the MLS and gaining exposure to buyer agents and potential buyers.

Conclusion: Is a Flat Fee MLS Service Right for You?

Key Takeaways

Flat fee MLS listings offer significant savings on real estate commissions, giving sellers access to the MLS without paying full-service agent fees.
Sellers maintain control

Best Flat Fee MLS Listing Service: How to Save Money and Maximize Exposure