Flat Fee MLS is good for Buyers, Sellers and Brokers

The typical real estate model where up to 7% in real estate commission is split between the seller’s and buyer’s realtors is causing an increasing controversy.

With some real estate agents making commissions in the millions, embracing change is not likely - instead the industry would rather see a cull in the number of real estate agents than accept a flat fee commssion arrangement. The exclusivity arrangement in real estate agents contracts means real estate agents control who, what and what commission rate is expected on the MLS - listing on the MLS only costs $35 but real estate agents cite this is only a fraction of the cost involved in marketing a property but putting a price to this is difficult and their is the increasing sneaking suspicion over the value added by the traditional real estate model.

Flat fee brokers providing FSBO’s access to the MLS are by contrast performing well for all concerned, with buyers and sellers not having a high commission getting in the way of closing a deal and flat fee real estate agents gaining business.

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