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