Have you ever seen those ads that say list your home for $79.00? I just saw an ad recently that stated that they would list your home for$19.00 I began to wonder what this was all about.
One of the things that I discovered was the MLS or the multiple listing service is open to just about anyone that wants to list their property on it. I thought, WOW that’s really interesting. You simply pay a Flat Fee and do the rest of the negotiating and sales marketing yourself. There has to be more to it than that. Here’s what I Found out.
The idea that you can list your real estate on the multiple listing service is very interesting.
Your property gets placed on your local MLS for a flat fee by a trusted local broker, making your property available to thousands of real estate brokers and buyers. There are several You will retain full rights to sell your property “For Sale By Owner” and save thousands in commissions, which includes all home showings, open houses, negotiations, and paperwork.
Remember, only a local and licensed real estate broker can list your property in the MLS. Let’s look at the first of three things you should consider before you decide to go with a Flat Fee arrangement.
I looked through Google and found several companies that offered a flat fee service.
Here are three to consider
Fee range from 19.00 for the first-month service to Several hundred depending on the amount of service that you need.
- Save thousands on Real Estate Fees.
- Have more control over the process.
- Decide when the property gets shown and when not.
- You get all the exposure without the expense.
You have to do most of what your agent maybe done for you. i.e. the showings, the open houses, and the contract negotiations. If you are comfortable with that then you should be good to go as far as selling through this Flat fee arrangement. Keep in mind that if a realtor brings you a buyer he or she will want some type of commission to deliver you a prospect that is ready to sign the bottom line.
Some flat fee brokers will have a set fee for that service as well as a fee to show the property and a fee to close the deal. Even with all the discounts being thrown around out there, there will still be some cost associated with selling the property. After looking at this new trend in Real Estate marketing I found that if you can get what I call “Out The Door” for 3.5 to 4% total cost then you are doing pretty well. On an average home price of 250,000, that’s still an average savings of $5,000 based on the traditional 6% listing fees.
You will need to adsorb the cost of high-quality photos, a possible video, and a virtual tour. ($around $300-$500)
There would be another option that has seemed to begin to get some traction. That’s a company like Offer Pad. They simply make you an offer and you accept or reject. If you accept you are done and they handle all the details.
We will discuss this option in detail in another post.
To sum it up..
I would make the following assessment, Yes you can save thousands of dollars by taking on some of the work when it comes to selling your real estate property. Yes, you don’t need a realtor. However, keep in mind that your local market will dictate the level of service you will need. If you are in a pretty good market and there are lot’s of buyers looking for a property, I would say go for the Flat Fee.
Here’s why you don’t need a selling agent in a hot market because there are loads of people looking. But, on the other hand, if your local market is slow and there are many buyers to go around, you will need a really savvy selling agent to push your property to the top of the buyer’s list. Hopefully, that was the Aha moment.
In a slow market, you pay more and probably net less. In a hot market, you can sell for less and get more.
Well, I hope that helps. We will expand on this topic more on a later date. Until now.