What is a flat fee MLS?
Selling a home is a life-changing event. There are many steps involved, such as finding another home, fixing up the present property if needed, and finding a real estate agent. Unfortunately, real estate services don’t always come cheap and agents often ask for commissions that are as high or higher than the interest percentage on a mortgage.
Many people feel they have no other acceptable option than to work with a real estate agent, but in the last decade, more people in the process of selling their homes are opting for a flat fee listing.
What is a flat-fee listing?
Usually, a real estate agent charges a percentage commission for the amount of money the house sells for. Flat fee listing involves paying the real estate agent a flat fee upfront. In return, the agent lists the home on Multiple Listing Services or MLS.
This prevents the real estate agent from raising prices in a way that might turn off buyers or avoid negotiating with potential buyers for fear of getting a lower commission. Agreeing on a set fee can help real estate agents put all of their efforts into selling your home.
In addition to simplifying the buyer-agent agreement, there are other advantages of flat fee mls.
1. You receive the asking price
Usually, a seller doesn’t receive their agreed price for the house but has to subtract the amount of commission their real estate agent charges. For instance, If a home sells for $500,000 and the real estate agent asks for a 6 percent commission, which is typical in the industry, the agent will receive $30,000. This is a sizeable chunk subtracted from the asking price. Although a flat fee does involve parting with some money, once it has been paid, you can consider the price paid for the home as yours.
2. You can still use real estate services
In the past, not wanting to pay a real estate commission meant going it alone. Selling one’s own home involves a huge learning curve and significant time and labor, including discussing complex real estate issues with the buyer’s agent.
Although many real estate agents paid a flat fee will simply add it to a Multiple Listing Service, for a slightly higher fee, many agents will still provide real estate services to flat-flee clients. This requires negotiating with your agent and agreeing on what services you will be entitled to, but a flat fee listing won’t leave you on your own.
3. Simplify the process
Selling a home is not a quick process, but it can go smoother if a buyer chooses a flat-fee listing. There is less concern that the home price will fluctuate as the agent may price the home with her commission in mind. Taking care of the flat fee ahead of time can allow the agent to focus on the buyer rather than any unfinished business with the seller.
In addition, you do not have the responsibility of taking care of the kind of details required in selling your own home. this solution provides the best of both worlds with some real estate services but without heavy commissions.
Why flat fee is the best solution
When selling your home, there is a middle way between selling it yourself and paying high commissions to an agent. Agreeing on a flat fee with an agent for services and an MLS listing can make the selling process simpler and attract a buyer sooner. With a flat fee mls approach, you can receive the actual price for your home and simplify the home selling process.
Story by David Van Der Ede