Flat Fee MLS

When you are going to be selling a home, especially when the housing market is in a bit of a cooling off period or a slow season, there are two things that are absolutely essential.

First, there’s setting the right price. It’s impossible for sellers these days to sell their home when the price is too high, and when the market has slowed a bit, you’re going to find that it’s even more difficult to get your asking price. This is mostly because there are less buyers vying for the property. However, if you’re able to take the time to set the right price for your home - based on other properties in the area and the size and condition of your home - your chances are going to be a lot better. And, of course, when you sell with flat fee MLS, you’re still in a better position to profit when you sell.

Flat fee MLS also addresses the second essential element for selling in a cooling market: exposure for the property. With flat fee MLS, your home will be listed alongside those represented by listing agents and you’ll have the chance to clearly identify all of the house’s best features and selling points. As a result of increased exposure, there will be increased interest and that leads to a greater chance that your home will sell.

What you’ll find when you use flat fee MLS to sell your home is this: you’ll have access to the tools you need to sell your home, be able to access tips and tools designed to help you sell and, even in a cooling market, you’re in a better position to sell the property regardless of what the market is like.

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Homes sales are increasing

SALES of homes and property in Terrace continue to rise, keeping up with the same trend across northern B.C.

Sales through the Multiple Listing Service (MLS), a service which is used by realtors to sell real estate, are ahead of last year with 298 properties of all types selling to the end of September compared to 252 sold for the same period in 2005.

The MLS in British Columbia is more popular today than it was this time last year. As home sales are declining everywhere, home sales through the Multiple Listing Service are increasing. Most home buyers purchase their homes through the MLS. That’s why you should list your home on the MLS and you can do that with one low fee right here on IHS Realty.

See Also

• Save Money Now
  Learn how flat fee MLS can save you money.

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Real estate commission eliminates limited service model

As expected, the real estate commission in New Mexico has effectively eliminated the rights of consumers in that state to purchase real estate services "a la carte". Deeming the citizens of New Mexico just too dull witted to understand and comprehend the the real estate services that they might want to purchase, the N.M Real Estate commission voted to approve a measure banning any real estate brokerage model that doesn’t provide a bundle of services and props up the traditional real estate commission model.

Opposed by the United States Department of Justice as anti-competitive and restricting to consumer choice, the rule change will go into effect in the next 30 days (apparently a real estate emergency is at hand). John R. Read, chief of the Justice Department’s Litigation III section, said, "Our view is consumers should have choices. For example, if you’re a (for-sale-by-owner) and would like to get listed on the MLS, you ought to be able to buy that service without having to buy everything else that goes along with it." Read also said, "We have found no filed complaints regarding fee-for-service brokers."

No longer will New Mexican home owners be able to sell their homes using a flat fee MLS listing service. The new rule requires that anyone who purchases services from a real estate agent also be required to purchase contract negotiation and presentation services and transaction follow-up as well.

See Also

• Justice Department Encourages the New Mexico Real Estate Commission to Maintain Consumer Choice in Real Estate Brokerage Services
  Proposed rule amendments would restrict consumer choice and cause New Mexicans to pay more for real estate services
• New Mexico real estate agents must offer more service
  Real Estate Commission approves minimum-service measure despite DOJ opposition

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Referral sites versus actual flat fee brokers

One thing has become clear from an online search for websites devoted to flat fee mls listing: the number of flat fee mls companies have proliferated over the past several years. Due in part to the housing boon, numerous flat fee mls listing websites offer consumers a range of choices for placement of a property on the Multiple Listing Service. These services save home sellers thousands of dollars over traditional real estate agents.

But is there any difference among the thousands of websites offering to list your home in the MLS for a low, flat fee? A close inspection of the leading flat fee mls websites shows that many claim to be able to list your property in the MLS anywhere in the country. To analyze this claim we first need to understand what the MLS is and what it does for home owners wishing to sell their property.

1. There is no one nationwide MLS that covers the entire country. Each locality, state or region has it’s own MLS and some have several.
2. MLSs are generally run by or controlled by Realtor members of the local association of Realtors and placement of a property on the MLS is restricted to MLS Realtor members.
3. There are currently no real estate companies, flat fee or otherwise, that have membership in every MLS in the country. That would require licensing in each state and membership in thousands of MLSs - an expensive proposition.
4. An MLS is a database of properties for sale, usually exclusive to the Realtors in the MLS coverage area, which ranges from a small town and the surrounding counties to an entire state or multi-state region.
5. Through the MLS real estate agents offer to cooperate with one another to sell each other’s listed properties and to share in the real estate commission.
6. Although estimates vary, the MLS accounts for approximately 75% of home sales in any given area of the country.
7. Realtor.com  is the official website of the National Association of REALTORS®. They are the world’s largest real estate database of homes for sale and are largest most active website with more than 353 million page views monthly. REALTOR.com houses more than 2.2 million listings nationwide.  Properties listed in local MLSs may appear on Realtor.com, but not for sale by owner properties.

Given these facts about MLS, choosing a real estate website that offers flat fee mls listing presents an obvious question: "How does the website that offers to place a home in the MLS anywhere in the country operate given #2 above?" The answer may come as a shock to newbies to the flat fee market.

The vast majority of real estate companies offering flat fee mls listing on the Internet are nothing more than online referral fee generating applications. They collect your money for the MLS listing and go out and find a MLS member broker who will place your property into the MLS for a portion of the fee you pay. What’s wrong with that?, you may ask. As long as my property gets listed why should I care who gets paid?

The real problem is accountability. Let’s say you list with an online site claiming to be able to place your property on the Internet in New Jersey. The actual website operator may be located anywhere in the world and not subject to the laws and jurisdiction of the state of New Jersey. If he collects your money and can’t find a broker in NJ to list your prpperty, you’re out your $500 or so until the website operator exhausts their attempts to locate someone who will agree to list your property in your nearby MLS (for a greatly reduced share of their normal fee).

What if the California based flat fee website operator decides to look for a broker for month, or even longer. What recourse do you have? From your state licensing authority’s point of view, very little. Real Estate Commissions exist in each state to regulate the actions of real estate agents. If you have a problem with your Realtor, you can go to the State Real Estate Commission to make a claim. Alas, the Internet allows website operators to fly under the radar and out of the reach of local regulators. Once they have your money, you are at their mercy. You could attempt to settle the matter through your credit card company, but that will still take some time.

Another consideration is that the referral website owner may make claims about what is included for your flat fee that the local broker actually doing the work may not honor. Because the referral website is marketing flat fee services nationally, they can’t possibly list the inclusions and exclusions, rules and regulations for each local MLS. With referral website operators, you may not get all that you paid for.

So what’s your best bet when dealing with online flat fee listing companies? First, make sure the company you are dealing with is licensed in your state (see the licensing link below). Second, ask to speak to the broker. If the website operator refuses, try somewhere else. Third, ask for references of testimonials. Talk to someone who has sold through the flat fee broker about their experiences.

Flat fee MLS offers a tremendous cost savings over traditional real estate agent offerings. The caveat, like with all Internet companies, is to know who you are dealing with. Find a reputable company with a long track record of success.

See Also

• List of Flat Fee MLS Listing Brokers Nationwide
  A website listing flat fee broker MLS packages throughout the United States
• Real Estate Licensing Commissions
  A list and links to state real estate licensing authorites
• Flat Fee MLS Referral Website Complaints
  Typical flat fee MLS referral website customer complaint

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InSight Realty offers online property data search to the Triad area

InSight Realty, an online real estate company offering flat fee MLS listing and discount real estate services throughout the Mid-Atlantic, announced today the addition to its website, www.InSight-Realty.com, of an online IDX property search engine for home buyers in the Greensboro, Highpoint, and Winston-Salem, North Carolina area. The company now offers home search capabilities of residential single family properties for sale from the MLS databases in 4 of its regional markets.

InSight’s search engine allows home buyers to search for homes listed in the Multiple Listing Service updated on a daily basis. Home buyers can also request showings of homes for sale using an online form and can request that new listings matching their criteria be emailed to them as soon as they come on the market.

In addition to the TRIAD MLS, InSight now offers IDX search capabilities for First MLS in Atlanta, GA, Triangle MLS in Raleigh, Durham, Chapel Hill, North Carolina and Central Virginia MLS in the Richmond, VA market.

See Also

• Internet Data Exchange IDX
  Realtor Internet Listing Display Policy

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When the Housing Bubble Bursts…,or, just slowly leaks air.

Patrick Newport, U.S. economist at consulting firm Global Insight in Waltham, Mass., said in a recent statement,  "Interest rates have eased in recent weeks, but we are expecting them to drift back up over the first half of 2006," he said, adding that if the Federal Reserve raises interest rates two more times before pausing, the increases "will cool off the housing market and deflate many local housing bubbles."

It seems that everywhere you look today, a housing bubble burst imminent. So, what do you do if you want to sell your home in a slowing market? In a buyer’s market, pricing it the number one most important factor in selling a home. Obviously, anyone can sell their home by lowering the price enough to cause a sale, but for most home owners, this option leaves a bit to be desired.

So, to re-phrase the question, "How do you sell your home and still NET the most  during a market slowdown?" Enter "flat fee mls" listing. A relatively recent entry to the real estate brokerage industry, a flat fee MLS listing allows home sellers to place their property in the Realtor MLS and on Realtor.com for an upfront fee (usually in the $500 range) instead of paying a whopping 6% commission at closing.

A flat fee MLS listing allows a home seller to lower their price and still, maximize their net return. Studies show that a MLS listing increases the odds of selling a home by providing the highest marketing exposure possible. Higher exposure means a greater demand and consequently a higher price. 

Here’s how it works: Instead of listing with a traditional broker, find a flat fee broker offering MLS entry only listing of homes for sale. (for a nationwide listing of flat rate brokers visit www.MLSLion.com). A flat fee broker will enter your property into the Multiple Listing Service in your area where it can be viewed by all of the real estate agents as well as their buyers. If a buyer’s agent brings you a buyer, you pay them 1/2 of the normal commission amount, generally around 3%. For every $100,000 of your sales price, you save approximately $2,500. That means on an average $200,000 home, you can lower the sales price by about $5,000 and still net the same amount of money from the sale as if you had used a traditional real estate agent. Of course, all other factors being equal, a house selling for $195,000 sells before one selling for $200,000 in any market.

If you’re not ready to go the For Sale By Owner (FSBO) route, most flat fee brokers also can provide additional assistance for marketing, contract preparation and transaction management and closing. Flat fee MLS also provides significantly higher marketing exposure than FSBO. The reason is simple - most buyers go to real estate agents using the MLS to purchase a home. In fact, the most recent comprehensive study showed that over 75% of home buyer’s use a real estate agent when purchasing a home.

There’s usually little risk with flat fee MLS listing too, as many flat fee brokers will credit your upfront fee back if you allow them to refer you to a traditional real estate agent, should you change your mind down the road. It’s truly the best of both worlds. All of the exposure of a traditional real estate listing without the cost, or even the risk!

See Also

• Real Estate Journal
  Homes Sales Fell in December, Condo Market May Falter
• Extreme home selling
  As the market slows, home sellers are throwing in sweeteners to move properties…dual-mode toilets, anyone?

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