Rhonda Duffy
The Real Estate Powerhouse &
Expert Consumer Advocate
What a Flat Fee MLS and FMLS Listing Means to Sellers and Agents. Understanding the Ins and Outs of the Most Controversial
Shift In Real Estate Is Critical for Sellers and Agents
In 2003, the flat fee MLS and FMLS (multiple listing service) listing became popular after consumers started to understand what the power of the internet has done to real estate. The flat fee MLS and FMLS listing is a listing that follows the same rules, same processes and same forms as other types of listings as it uses the same MLS and FMLS service and input as all other real estate companies. So, a seller gets the same exposure as they would from any other agents in their area as long as the company is using all of the multple listing services in that area as many cities have multiple listing services. Photos however are up to the seller and listing company to agree upon. Photos are one of the most critical parts of exposing a home to potential buyers and should be taken very seriously. There are some flat fee MLS and FMLS companies that do not offer photos in their service where others actually offer more than other full service or full priced brokers.
Most Multiple Listing Services populate to many other sites. A seller can expect that their home will be advertised on hundreds of websites, including most of the major company websites. And, the benefit of many flat fee listing companies is that they allow the Seller to advertise any place that they want, including for sale by owner websites or newspapers. As a matter of fact, many flat fee MLS and FMLS companies actually add their sellers to different for sale by owner sites because most of the companies allow the seller to sell to a buyer that is not working with an agent and save the buyer’s agent commission.
If you ask someone off the street what the difference would be in a flat fee listing and in a full priced or full service listing, most people would say that you have to do more work when you are listed with a flat fee listing company. However that is not true. Because the forms are the same, the buyer’s agent will be contacting the seller for showings which is the same process as they would normally to show a seller’s home. Buyer’s agents will bring buyers to your home and most flat fee companies will show the home to someone without an agent if you ask them to do so. Of course the homeowner is left with cleaning and keeping the house in showing condition which does not change no matter whom has the house listed.
Homeowners are allowed to do their own open houses which makes the process of holding open houses a more consistent process of keeping the house open for buyers, if they choose. The flat fee MLS and FMLS listing process has no rules, you as the seller decide what you want to be done and you do it. Some flat fee MLS and FMLS companies do have a la carte marketing, but many do not.
Some flat fee MLS and FMLS listing companies offer contract negotiation, which is critical to a seller’s success. Many agents choose not to deal with a company that makes them negotiate directly with a seller because it puts their real estate license in jeopardy. The law is very grey in most states when it comes to whether or not a real estate licensee is able to talk to someone else’s client. So, the better flat fee MLS and FMLS companies now offer a contract negotiation piece to their business to make sure that every seller is able to not only attract buyers but they are able to get to the finish line with their buyer with the valuable experience and volume that the flat fee MLS and FMLS listing companies are able to use to negotiate contracts between buyers and sellers.
The most powerful part of the flat fee Multiple Listing Service and FMLS listing is that the owner is able to take more offers, or should we say make more offers work because they are not paying a high commission. Because of the current buyer’s market that most areas of the country are experiencing, the buyer believes that they should be able to negotiate the price of the home deeply to feel that they have gotten a good deal. The difference between most sellers and buyers agreeing on a price is often 2% of the list price. That difference is made up when you are not paying a high commission to an agent but instead are paying a flat fee to be listed.
The flat fee MLS and FMLS listing process for agents allows agents to have plenty of inventory to show their buyers. Well actually, most buyers search the internet on agent websites where all of the inventory is posted, and then they tell their agent what they would like to see. Agents are paid the same amount of commission as they would be in all other real estate transactions and because of the savings that owners have on the listing side with the flat fee MLS and FMLS listing, they are actually able to offer more money to the buyer’s agent.
The alternative for most sellers who do not want to pay a high real estate commission is to be a for sale by owner. The traditional for sale by owner system of the red and white sign means that buyers most likely have to drive by the home to see it for sale instead of using the more powerful method of home shopping, which is the internet. The conversation between seller and buyer’s agent is often awkward as the buyer’s agent secures their commission with the seller while they are with their buyer. The flat fee MLS and First Multiple Listing Service listing is definitely preferred to the for sale by owner non-advertising method in the real estate community.
Real estate has changed and it has changed forever, giving the sellers more opportunity to expose their property at a lesser cost and ultimately giving themselves a better strategy to get to the finish line when a buyer makes an offer.
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