Alternative online models pushing real estate agents out of spotlight

The Internet has created another money saving opportunity for consumers. A new breed of company has emerged as a power player in the real estate industry in recent years due in large part to the current run of continually rising home prices in the United States.

As the cost of homes has risen, so have the accompanying commissions paid for selling a home with Americans paying out more than $70 billion last year. As a result, more and more home sellers have decided to look for alternatives to paying the relatively high commission rates charged by traditional real estate brokers.

A successful variation of the discount brokerage theme has emerged in online flat fee MLS listing. According to this model, home sellers can list their properties in the Realtor MLS system through an online broker for a low, one-time flat fee. And in true Internet fashion, they never have to leave their homes or spend precious evening hours interviewing real estate agents.

Online flat fee MLS listing sites such as MLSLion.com provide home sellers with an affordable method of garnering the same marketing exposure for their homes once only available through traditional real estate brokers charging 6% or more. With a flat fee MLS listing sellers receive a listing in the local Realtor Multiple Listing Service and on Realtor.com.

With online flat fee MLS listing, sellers handle the showing and sale of the property themselves. If a broker member of the MLS sells their property, they pay just 3% or half of what tradtional brokers charge. However, importantly, home sellers retain the right to sell their home directly to a buyer without paying any commission.

See Also