Is Using a Flat Fee MLS Service Right for You?
When selling your property, you want to make sure you get the MOST possible! So, you are without a doubt probably curious about flat fee MLS services. Now I know what your thinking… and yes I am a local commission based realtor. But, I want to make sure everyone explores all their options and when they work with me they know I am always acting in their best interest and never after the money. So, what even is a flat fee MLS service? Well, a flat fee MLS service will list your property on the MLS for a “flat fee.” This is basically a step up from selling FSBO as you are still the main person designing the ad but it’ll get added into the MLS. This fee ranges from 450 and up depending on how hands on you want them within the transaction and you will also have to cover 2.5-3% commission to the buyers agent. So, ready to learn more?
Let’s Dig a Little Deeper!
Active vs. Passive Marketing when Using Flat Fee Services
The MLS is one of the best places to list your property for sale. But, marketing doesn’t stop once it is listed on all the sites. That’s why we have to dive into all the fun ways to truly make your property stand out using active and passive marketing. We will also break it down in terms of what you can accomplish on your own and what a flat fee service will provide you.
Active Marketing is when the one marketing is being active. Some common examples are networking, boosted social post, direct mail, open houses, and events.
Passive Marketing is when the marketing is all passive. Like listing it on the MLS, Zillow, and other sites.
Now, that you know more about what these different marketing strategies are let’s see how to use them to your advantage. The MLS is a type of passive listing as once it is up its done. However, the listing it self should be done with a plan making sure to fill every box possible and that the description is done up perfectly! When using a flat fee service you will be responsible for the description, photos, videos, 360 tours, etc. I would recommend getting the PDF of the MLS listing from your flat fee agent to make sure they filled everything out on your behalf.
As for active marketing with a flat fee service it stops at the MLS listing. You will still be responsible for the important active marketing efforts. Things like social media post (with money behind them), networking (speaking to everyone you know), and open houses (that are advertised in advance through social media and networking). But, don’t be mistaken just because you use a commission based realtor that doesn’t mean you will automatically get the best active marketing efforts. Make sure you research anyone on their plans regardless of their title, brokerage, experience, and talk… actions speak louder then words.
Why do the Agents Work for a Flat Fee?
So, if people are paying commission agents like myself 6% why would an agent work for less? Well, I actually worked as a transaction coordinator (someone who does all the paperwork for transaction) for a flat fee company when I was in high school. It really helped me with understanding all the contracts and things that can go wrong during a deal. However, it also showed me how flat fee services function and why they operate. Basically in larger operations, the agents are paid on salary and they are fed transactions as leads. So, the agent doesn’t care they are getting less because the risk of them not making anything is eliminated. When working as a commission based agent your ability to make money and feed your family hangs onto your ability to help people sell and buy houses.
As you can imagine a low risk career in real estate can definitely attract a lot of people. But, also ask yourself who would you expect to market your home the best? Someone who gets paid no matter what or someone whos whole income relies on selling your property? When you go with a flat fee service you will be getting just that a “flat service” whereas with a commission agent you will get someone who has to be driven.
Will You Really Save?
I know the real question everyone is wondering! The answer really depends on the situation and person/family. Like I said I worked for a flat fee service before I could be licensed on my own and I have my reasons for going commission based and none of them were related to money. So, I respect the opportunity for some people to explore it as an option. You will still be responsible for the buyers agent commission (2.5-3%), marketing the property on your own, a cma or appraisal, and the flat fee agent’s fee. But, if you are a social media freak, local business owner with a huge network, a marketing nerd, and a very outgoing person… you may be able to handle the active marketing side. But, keep in mind there is also a reason why people pay agent professionals like myself who study the current market and trends specific to the local real estate industry. I would always recommend going with what you specifically need and getting with a flat fee service will definitely help MORE then just selling FSBO! It could be the best baby step towards hiring a commission agent like myself. That way you know you tried everything possible to your personal best extent before making the jump to hiring a commission agent. I also recommend that before anything you make sure that you are listing your property for the right price as that is extremely important. So, make sure to consult a local realtor or appraiser.
Whether you are looking to “save some money” or take the next step on your FSBO process. I hope this blog post helps you in knowing which way to go or at least inspires you to look more into it. A flat fee service will get your property onto the MLS, but keep in mind the other factors at play to get your home sold will ultimately fall onto you. The longer your property sits on the market the harder it will be to remarket to buyers as the initial fresh listing will not be obtainable. So, make sure you choose the best option for you and your family.
