Homeowners who want to sell their properties on their own have various ways to advertise their homes for sale to reach a wider target market. One of these is the flat fee multiple listing service (MLS). Marketing is crucial in selling real estate properties hence, it’s important that FSBO home sellers take advantage of the different marketing methods available to them. The MLS flat fee service is also known as the flat rate MLS or fixed fee MLS. It basically entails the placing of vital information about a property for sale into the multiple listing service database for a certain rate. In availing of this service, a listing contract is normally executed between the homeowner and the real estate broker. The agreement calls for the broker to include the property in the MLS and the home seller to pay the broker a flat fee for the service rendered. This type of marketing service is less costly compared to using the standard real estate listing contract and gives homeowners full control of the selling process. While traditional brokers charge from four to seven percent of the property’s selling price for a listing service, a flat fee MLS can cost only between $400 and $600 depending on the levels of service preferred by the seller. The flat fee is always paid in advance before the start of listing the property instead of at closing which is typical for traditional brokerage services. For homeowners selling their properties as for sale by owner (FSBO), using this service provides big savings enabling them to keep most of the profits. Many MLS flat fee services allow sellers to advertise as FSBO which means if the owners find their own buyer, they no longer have to pay the buyer’s agent commission. A buyer’s agent commission ranges from 2.5 to 3 percent of the property’s selling price and is paid to a broker who brings a buyer. Additionally, MLS flat fee services may allow the cancellation of the listing any time and not require sellers to be locked into a contract for a minimum fixed period. Real estate brokerage services usually offer a package that includes marketing a property for sale as a MLS property listing. In the U.S. and Canada, this type of service calls for homeowners to pay a five to seven percent commission on the property’s sales price. However, the package was later unbundled resulting in the fixed fee service. While it existed before the advent of the world wide web, the flat fee MLS became even more popular with the growth of the internet. Today, numerous websites cater to multiple listing services including those for the FSBO market. Oftentimes, they provide users with a web page as a way for them to advertise their property with all the necessary information and photos they wish to include.
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