| There's
no doubt that by now you have probably seen
advertisements for Flat Fee MLS listings. So
what exactly is a Flat Fee MLS listing? Let's
take a look at a traditional real estate transaction
so we can better understand the flat fee system.
In a traditional
sale listing a seller hires a real estate company
to sell their home. Traditionally the broker
charges between 6% and 7% as a commission. Once
listed, the broker will place information about
the home for sale in the local MLS service.
The service is comprised of all the participating
real estate brokers in the area. As an incentive
to other participating brokers and agents, the
listing broker offers a commission split (generally
1/2 of the listed commission) to any agent or
broker who brings a buyer. It's as simple as
that.
Now the savings!
When you use a Flat Fee MLS service you are
paying a broker a flat fee to list your property
in the local MLS service. In doing so, you would
then only be obligated to pay the commission
split (remember it is only 1/2 of a normal commission)
to the participating broker or agent who brings
you a buyer. Your immediate savings in near
50% of a normal commission! Here is the best
part, if you sell the home yourself without
an agent you pay absolutely nothing other than
the initial fee to list the property. That's
a zero percent commission! |
