Flat Fee MLS listing services have become popular after the full-service real estate agent commission skyrocketed in the last few years. Two main benefits of going for a Flat Fee MLS listing are low cost and high exposure. With the hike in the mortgage rates, sellers are constantly searching for means to maximize their profits and buyers are on the lookout for affordable housing. Listing with a Flat Fee MLS service creates a win-win situation for both parties, benefiting everyone involved in the deal.
Here is everything you need to know about Flat Fee MLS Listing services in America and also their alternatives if you want to explore more options to carry out the sale.
1: Why is it enticing to work with a Flat Fee MLS service?
Flat Fee MLS services have gained a lot of importance in recent times because of the flexibility and scope for savings it offers. Also, there is a lot of dynamicity in the market now and hybrid options for buying as well as selling are encouraged. Here are a few more benefits of signing up for a Flat Fee MLS listing service.
A: Speed and effectivity
Speed to market is one key point to consider when choosing a Flat Fee MLS listing company. The listing time taken is usually less than 24 hours, which works great to hurry up the sale process. Most processes are online here which is easy and effective for the sellers.
B: Maximum savings
Traditional full-service agents charge close to 6% commission but a Flat Fee MLS listing service will only charge a few hundred dollars, ensuring max savings for sellers. A few companies like Houzeo offer buyer agent commission to ensure that the property is sold at the best possible price.
C: Flexibility and autonomy
There is a lot of flexibility in terms of the arrangement of showings and marketing strategies employed to make the sale. The best part about the Flat Fee MLS companies is that they offer full autonomy to sellers as they are looped into every development and step through an app or other tech tools. Gone are the days when sellers had to wait for the red tape and complicated formal and legal procedures to be completed by their agent
Most Flat Fee MLS Listing services are highly customizable and hence it is very convenient for sellers to pick and choose services only they wish to pay for. Experienced sellers can only pay for the MLS listing with minimum photos for less than $100 and can have a DIY approach to selling their house, which can save them a lot of money.
There are hybrid structures available within the Flat Fee MLS listing service set up which can be tailored according to the individual seller’s needs.
E: Complete digital aid
Most Flat Fee MLS listing services are very advanced technologically. There is an app to monitor listing. In addition to this, there is an arrangement to manage showings online, documents and disclosures are processed in just a few clicks, offers could be discussed and settled on an online platform, and closing assistance is given through the mobile app.
2: The hard reality of working with Flat Fee MLS Listing company
It is easy for FSBO sellers to sign up for a Flat Fee MLS Listing company in all excitement of saving up on dollars but the following factors give a cautionary warning to inexperienced sellers.
A: Hidden costs
While these companies market their rates as low as $70-$99 but there are hidden costs involved at the time of the closing. Flat Fee MLS listing company, Fizber, is known for levying extra charges at the closing. It is important to calculate these costs beforehand. Hence a seller’s research should be perfect before deciding on the Flat Fee MLS Service for themselves.
B: House may sell for less
Data says that FSBO homes predominantly represented by Flat Fee MLS Listing services sell for less as compared with properties represented by the full-service real estate agents. But there is no need to get deterred by mere statistics as with the right approach and right service for your needs, you can crack the best possible deal with the Flat Fee MLS Listing company.
C: No agent support, DIY approach
Most Flat Fee MLS Listing sites are based on the foundation of DIY. This is great for experienced sellers but first-time FSBO sellers find it difficult to navigate through the real estate red tape and do all the legwork in preparation of the documents for a successful sale.
D: Delay in closing the deal
There might be delays since the FSBO sellers are left to their devices to make the deal happen. Without agent support, it is difficult to accelerate legal processes to complete the sale.
3: Best Flat Fee listing services
The following are the best Flat Fee MLS services in the country for FSBO sellers.
Known for its cutting-edge technology and no hidden fees, the company enjoys a 4.9/5 rating on Trustpilot. They have plans starting from $199 to $999. Their highly customizable packages give you an MLS listing at a low price and also provide full-service agent services, virtually, with their premium packages.
You can check out Houzeo reviews for more information.
B: Congress Realty
This is one of the most recognized companies in the country. Their basic functional package is $299. Their monopoly is in their two services: unlimited photos and Comparative Market Analyses (CMA) on the seller’s request.
Fizber is one of the cheapest Flat Fee MLS listing companies available in the country right now. Their basic plan starts from $95 onwards but they levy extra charges of about 0.5% as a success fee at the time of closing.
The basic package starts at $99 and their premium package is $399. Their USP lies in the fact that there are no hidden charges with FSBO.com. But their demerits include that they have limited options for sellers seeking pay-per-package services.
They have two packages at $299 and $399 which give listing, photos, and syndication to other sites. There is little customization available which is a little cumbersome for FSBO sellers as they have to do all the marketing and carry out the sale of the house by themselves.
4: Alternatives to Flat Fee MLS listing service
If you are still not sold on the idea of signing up for a Flat Fee MLS site, here are a few other options you could opt for.
A: Full-service real estate agents
Full-service real estate agents are traditional means to sell a house. They charge around 6% commission but handle everything from pricing to closing of the house. They are a convenient way to sell a house if you are new to the business and do not want to risk it.
B: Low commission estate agent
Just as the name suggests, these agents charge a lower commission than the market rate. If the usual commission is around 3% from the seller’s side, they charge only about 1.5%-2%.
C: Discount realtors
Discount realtors charge only about a 1% commission rate as opposed to the usual 3% and are known to give only specific services. Experienced sellers prefer this method. If you search for discount realtors near me you would find a number of options including Redfin and ListingSpark which are highly rated.
D: The virtual full-service agent
This is a 100% online service given to sellers at a highly low cost or a flat rate. Flat Fee tech companies like Houzeo have known to give full virtual services for around $999+. Everything from pricing assistance to closing is handled online. This is increasingly a popular method these days.
E: Cash buyers
Cash buyers are popular in a distress sale or when the property is to be sold in the ‘as-is’ category. With cash buyers, the sale is quick and sometimes the sellers get less than the market value but that is sort of expected with cash buyers.
Flat Fee MLS Listing is the best way to save up on a few thousands of dollars rather effectively. With companies like Houzeo, you can literally sell your house in a few clicks sitting in the comfort of your home.