What is an MLS? An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers. Membership is not open to the general public, although selected MLS data may be sold to real estate listing websites. MLSs are local or regional, they do not cover the a whole country. Now with the Internet there are more opportunities for home sellers. For instance, now “For Sale By Owner” MLS services are available. These function much the same way as brokers MSL and they allow the general public to list their properties without having to hire a real estate agent. For Sale By Owner MLSs are a less expensive alternative to other MLSs because you will not have to pay the expenses it would cost for the services of an agent.
For Sale By Owner MLS sites have also provided a way for sellers to list their homes nationally without an agent. By saying one-half of the commission using a flat fee mls listing or all of the commission by selling FSBO (fore sale by owner), sellers can offer their properties at reduced price (which also makes selling easier) compared to broker listed properties which benefits the buyer as well.
There are a lot of businesses online that offer flat fee mls which allows you to get the same benefits and exposure your MSL listing and save thousands when you sell your home. You pay a flat fee and cut the cost of commission that you would have to pay a real estate agent to provide a similar service for you. You are getting the same advertising advantages with way less cost to you.
Assume that you list your property with a company for a flat fee of $499.00. Then your home sells for $200,000. Your commission payout to the buying agent would be $6,000 plus the $499.00 fee, for a total of $6,499.00. This is calculated as follows: $200,000 X 3% = $6,000 paid at closing and the fee of $499.00 (paid at time of listing). If you listed your home with a traditional broker for 6% the commission payout to the selling and listing brokers on a $200,000 sale with a 6% commission rate would be $12,000. Therefore the savings would be $5,500 ($12,000-$6,499 = $5,500). You can save literally thousands of dollars by using a For Sale By Owner MLS rather than a traditional MLS.