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Flat Fee MLS services vs. FSBO, which is the better choice?

 

Please note:

Every MLS restricts FSBO homes from being included within their database.  They do this for two (2) reasons:

 

  1. MLS member (state licensed, real estate brokerage company) is not representing a FSBO seller, and
  2. FSBO seller does not offer cooperating agent compensation (commission) to a broker, who represents a buyer (Buyer’s Agent)

 


Realtor.com restricts FSBO homes from being included within their database for the same reasons.


According to statistical data, eight five percent (85%) of home buyers utilize their local area MLS and/or Realtor.com to help them locate a home.


Your MLS and Realtor.com listing includes your name and telephone number and language that instructs buyers and Buyer’s Agents to call you directly.


Some real estate consumers (sellers) choose to “go-it-alone” and sell their homes without any assistance from a traditional real estate broker or a Flat Fee MLS broker. These sellers are referred to as "for-sale-by-owners" or "FSBOs".


In hopes of selling their home “on-their-own” and not paying a commission, the FSBO seller typically markets their home by “word-of-mouth”, posting a yard sign and placing ads in local media and small niche, FSBO websites.


Since the FSBO seller has chosen to “go-it-alone” and not hire a real estate broker, other “non-real estate brokerage companies” have chosen to offer services to FSBO sellers to assist them in their endeavor.


For example, one website may be devoted to advertising FSBO homes, another may allow home sellers to post color photos, virtual tours, and a one thousand word description that is searchable by potential home buyers and a third may be devoted to providing potential home buyers with general information on neighborhoods, such as demographics, crime rates, and school quality.


Further, many of these FSBO websites provide links to ancillary service providers, such as title insurance companies, escrow services, and home inspectors, and also provide sample forms related to real estate transactions, such as sample purchase or lease agreements.


A recent review of these types of FSBO websites indicted that the industry average price for this type of FSBO service is a one-time, flat fee of approximately $300-$500. If the FSBO seller utilizes multiple newspaper ads and FSBO websites, the industry average price increases to $750-$850.


Alternatively, by listing your home in the MLS, it increase its exposure by advertising your listing to a large pool of buyers, who are currently utilizing the services of real estate agent (Buyer’s Agent) and who typically avoid FSBO listings.


Plus, by listing your home in the MLS network, Be Happy! Realty publishes your listing on Realtor.com; the official website of the National Association of Realtors (NAR).


It is generally accepted that many buyers, who are not currently utilizing the services of a real estate agent (Buyer’s Agent); utilize Realtor.com when looking for a home. Therefore, you (the Seller) dramatically increase your chances of selling your home to a buyer, who you have procured on your own (without the assistance of a Buyer’s Agent). In which case, you will not pay a commission to anyone.


Be Happy! Realty believes the choice is obvious: Flat Fee MLS services is the better choice, since it provides your listing with greater exposure to potential buyers via the local area MLS and Realtor.com.


While Flat Fee MLS services will never be a replacement for the services of a traditional real estate broker, the same cannot be said for the FSBO model. In our opinion, the Flat Fee MLS model is a “category killer” of the FSBO model.


The way we see it: it’s your choice, pay a one-time, flat fee and get exposure on your area’s local MLS and Realtor.com or pay a similar one-time, flat fee and get exposure on small niche, FSBO websites. Basically, it’s a “no-brainer”. : )