To avoid high or uncertain commission fees, more homeowners in the United States opt to sell their properties under a classification known as ‘for sale by owner’ (FSBO). In 2022, nearly 10% of homes sold without a real estate agent, and that number continues to grow.
Although the seller does not pay real estate fees or commissions in these circumstances, they must still budget for expenses, such as advertising, marketing, staging, and closing costs. We’ll discuss how FSBO homeowners can access MLS listings by using a flat fee MLS listing service to market their homes. We explain how working with a brokerage company can defray the added costs of selling your home FSBO for an affordable flat fee. A flat fee MLS listing service could save you thousands of dollars and get you multiple viable offers.
What is an MLS Listing Service?
As far back as the 1800s, the housing market collectively determined that a competitive yet cooperative industry model would benefit all key players involved in a home sale, including buyers, sellers, and real estate agents. The multiple listing service (MLS) sprang from this spirit of cooperative competition and still drives the market today.
With current technology, the MLS is a digital collaborative database that provides the housing industry with up-to-date information. Real estate agents access region listings and peruse details such as square footage, photos, and specific information on schools, walkability, and neighborhood businesses. The agents pay a monthly fee to their MLS broker for access in addition to membership dues with the National Association of Realtors or NAR.
Requirements to List a Property with an MLS Listing Service
Real estate agents with a current license and updated NAR membership qualify to access the MLS listing services. To obtain a real estate license, one must take a months-long course costing upwards of $1700. Additionally, agents are expected to keep up with industry updates via continued education programs. It may make sense for those in a related industry like mortgage underwriting or real estate investing to spend the time and money on a real estate license, but not for most potential property buyers or sellers.
For most homeowners who want to avoid real estate agent fees and commissions, the practical way to gain access to the MLS listing service without becoming a real estate agent yourself is through a brokerage that provides a flat fee listing service. Companies like HomeZu allow FSBO sellers to list their property on an MLS, exposing them to many buyers and providing additional services.
Benefits of a Flat Fee MLS Listing Service
In the United States, there are about 600 MLS regions. Homeowners signing up for a flat fee MLS service must select their state and region and choose any additional services they may require, including staging, marketing, and help with documents. Some sellers may want to take advantage of these extra services to help with the laborious task of selling a home.
Today’s home buyers can still access hard-copy real estate catalogs, but paper brochures simply can’t compete with the timeliness and convenience of the electronic databases that an MLS provides. Whether you sell your home FSBO or hire a real estate agent, if you want to be able to select from multiple offers, you’ll need to list your home on a listing service. For FSBO sellers, using a flat fee listing service comes with additional benefits:
- Flat-fee MLS services encourage fair competition among small and large brokerage firms. Sellers who pay a one-time flat fee can contract a firm that meets their needs.
- Potential buyers can choose from a large and constantly evolving pool of real estate. This one-stop master list of available properties saves time and avoids having to search on multiple websites.
- The flat fee MLS service structure allows sellers and buyers to complete real estate transactions with a productive and efficient experience.
