You can sell by owner and take advantage of Multiple listing services as well.
That’s the best of both worlds.
When you’re ready to sell real estate, many people think you have to list with a broker and pay outrageous commissions. Not true.
You have options. Let me explain how things work in the world of Real Estate. Compare then decide.
MLS Multiple Listing Service is simply an organization put together by Brokers to share and market their listings.
Broker A lists a property for a 6% commission. He advertises his new listing in the MLS and agrees to pay a cooperating Broker 3% or half of the commission you’re paying him.
Most brokers only work with pre-qualified buyers, meaning they have been pre approved by a lender to purchase a home in a price range. Also, most brokers work with buyers as a Buyer Agent; they’re working for the buyer.
The listing broker may be a Listing Agent and is working for the Seller.
A nice little package that used to leave the For Sale by Owner out in the cold. No More. Read on.
What do listing brokers do to earn 6%?
They do a number of services.
1. List properties on Multiple Listing Service
2. Review and/or write purchase agreements.
3. Act as a transaction coordinator, who follows a contract to closing.
4. They set showings.
5. They put a sign in the yard with their number on it
6. They provide a lockbox
7. Most prepare flyers, with their contact information on it.
On a $200,000 dollar property your commission would be $12,000. The Broker Gives one half or $6,000 to the selling agent.
How is Flat Fee MLS different?
A Flat Fee Broker will:
1. List your property on the same local Multiple Listing Service.
Fees Vary - usually around $200.00 - $300.00 Some services charge considerably more.
2. For a small additional fee they will review and/or write your purchase agreement. This fee is usually around $279.00.
3. For a small additional fee they will act as a transaction coordinator. Someone who follows your contract through to closing. This fee is usually around $379.00
4. You set the showings when it’s convenient for you and the buyer.
5. You have your own sign with your phone number as contact.
6.You have a key box, and you control who has access to it.
7. You create your own flyers with your contact number or you can get free flyers from a local title company or a lender.
So you get pretty much full service with full exposure to qualified buyers for a fraction of the cost.
The great thing about the Flat Fee service is you pick and choose the services you want and pay only for those you need.
How much money can you save?
If you bought all the separate Flat Fee services, your cost would be less than $1,000.
If sold by a MLS broker and you paid a 3% coop fee, you would still save $5,000 to $6,000 thousands dollars.
Important: You can still sell by owner, with an Exclusive Agency Contract. If you find your own buyer, you would pay no coop fee.
This is not an option with the 6% Exclusive right to sell listing. You save more than $11,000 dollars with a Flat Fee MLS. Not bad.
Flat Fee MLS Benefits
1. Save time - properties usually sell faster
2. Save money - properties usually sell for top dollar
3. Maintain control - Brokers have control with 6% listings
4. Sell by owner and pay no commission - Not so with full service listings.
5. Cancel at any time - May not be true with full service listings
6. Greater exposure to qualified buyers
7. Thousands of Brokers with qualified buyers available to sell your house
8. You’ll get listed on Realtor.com as well as the local MLS
What to Look for In a Flat Fee Broker
There are many FSBO scams.
1. Some call their service MLS when they are not even members of the MLS.
2. They may not be licensed real estate agents.
3. They take your money and put you on their web site but not on the Realtor’s MLS.
1. Do they Has experience with for sale by owners?
2. Are they members of your local MLS?
3. Are they licensed Brokers in your state?
4. Do they maintain an office locally? Do they have a local phone and address?
5. Are they easily accessible by phone, fax, email and mail?
6. Avoid large franchise companies and Multilevel Marketing scams
FSBOS need to:
1. Detach from the property.
2. Clean house and garage.
3. Stage the property
4. Research other properties in your neighborhood - price it right.
5. Put away the valuables
6. Make flyers for your buyers
So why do a full service 6% commission?
There are lots of reasons people choose to go with a higher commission and I respect their choice.
I think it wise to look into Flat Fee MLS services in your area - compare and make an informed decision.
Copyright© Wee Dilts 2010
Wee Dilts is the originator of Flat Fee MLS. In business since 1983. She has helped thousands of FSBOS save commission dollars. Get the information you need to effectively sell without a broker. Register in Colorado for Flat Fee MLS. Read Free articles or buy her “How to Sell Real Estate by Owner” Ebook, visit: http://FlatFeeMLSColorado.com.