| For years, extremely knowledgeable home sellers, | | | | listed property on the MLS. Buyer's agents find the |
| people like commercial real estate agents, real estate | | | | property in their customary search process and show |
| attorneys, and former residential agents would contact | | | | the property knowing that a particular compensation |
| their friends in the residential real estate business, | | | | level will be paid by the seller at closing in the event |
| asking them to cut a deal. "Just put me in the Multiple | | | | that their buyer purchases the property. The "by |
| Listing Service (back then it might have been referred | | | | owner" concept is useful, however, in understanding |
| to as the Multi-List) for a small fee and I will handle all | | | | that the owner is in control of their own listing. They |
| the work," they would say. Occasionally the residential | | | | can decide how showings will be handled, when to hold |
| real estate agent would oblige, although they would | | | | open houses, and how they want to negotiate. For |
| want to keep the arrangement secret from their full | | | | some sellers, simply having control over their listing is |
| paying customers. Although the home seller did not | | | | their main motivation for a flat fee MLS listing; the |
| have a way to directly list their property on the MLS, | | | | money they save is an added bonus. They can price |
| they were able to gain access through their Realtor | | | | the property how they see fit. They can hold firm to a |
| friend. The Realtors would not, however, offer | | | | particular price, or come down on price to make the |
| something like this to the general public. | | | | sale happen. Since money is saved in commissions, |
| In recent years, there has been so much demand for | | | | they often will walk away netting more money in their |
| this type of service that real estate agents have | | | | pocket. Some sellers like that they can answer their |
| realized that it may be a viable business to focus on | | | | cell phone for all prospective buyer and Realtor phone |
| this niche exclusively. Flat fee real estate brokers | | | | calls instead of worrying about those calls being |
| effectively unbundled their services by charging a base | | | | unanswered. |
| listing fee for the listing and offering upgrades that a | | | | Listing by owner on the MLS, flat fee listing, flat fee |
| customer could pay for, for instance, signs, lockboxes, | | | | MLS, or whatever the term may be, has grown in the |
| and virtual tours. These money saving programs are | | | | last few years and continues to grow even in a down |
| becoming increasingly popular for one reason, they | | | | market. Preserving one's equity is important to |
| work. Many sellers close escrow on their properties | | | | homeowners regardless of market condition. After all, |
| having saved thousands or tens of thousands of | | | | when a Realtor sells his or her own property, they |
| dollars. | | | | usually do it themselves, offer a commission to a |
| Home owners need to understand what "by owner" | | | | buyer's agent on the MLS (often 2.5 or 3%), and save |
| listing on the MLS is. First, the listing is not technically "by | | | | thousands in the process. Homeowners want to list |
| owner" at all, since anytime you list with a broker, even | | | | their own properties in this same fashion, and thankfully |
| a flat fee broker, your property is no longer considered | | | | now have the option. |
| for sale by owner or FSBO. It is treated like any other | | | | |