How would an Idaho seller benefit from a flat fee MLS service?

A flat fee MLS service can be a great option if you’re looking to save on the cost of a real estate commission. Instead of paying the typical 5% to 6% commission, you only cover the buyer’s agent commission and a flat fee for the listing service. This can significantly reduce your overall selling expenses.

It should be noted, however, that on March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.

These services are ideal if you have a desirable home in a hot market or if you want to be extremely hands-on in your FSBO sale. You’ll have control over the process and avoid the costs of working with a licensed agent.

However, selling your home FSBO requires you to manage several tasks on your own.

Here’s a brief list of what you’ll need to handle:

1. Setting the selling price
2. Writing a listing description
3. Taking professional photos
4. Marketing and advertising
5. Making disclosures
6. Coordinating showings and open houses
7. Reviewing and negotiating offers
8. Understanding the contract
9. Calculating closing costs and net proceeds
10. Handling appraisal and inspection issues
11. Managing transfer taxes
12. Gathering documentation

Pros and cons of using a flat fee MLS listing service

Pros:

• Eliminate the listing agent commission (typically 2.5% to 3%).
• Represent yourself in your home sale.
• Control all aspects of the sale from start to finish.
• Pay known costs for the listing service upfront.
• Get your home listed on the MLS and third-party websites.
• Expand your exposure to traditional buyers and their agents.

Cons:

• You’re still required to offer a commission to the buyer’s agent.
• You’ll be responsible for handling any issues that may delay or kill the deal.
• It’s a self-serve process that you’ll navigate without the guidance of a local expert.
• You may expose yourself to liability claims and other legal risks.
• Your house may sell for less than it would with a traditional real estate professional.

How do I list my home with a flat fee MLS service?

Once you’ve decided to list your home with a flat fee listing service, you’ll follow these steps to get your FSBO home on the MLS:

Step 1: Vet the flat fee MLS service
Research the local service you’d like to use, including packages and rates. Be sure to look up Google reviews and check out the company on the Better Business Bureau. Before you proceed, know how much information you’ll be able to list, how many photos you can post, what forms are available free of charge, and what add-ons come at an additional charge.

Step 2: Register and select a plan
Register on the flat fee MLS company website, select the package you want, and pay the upfront fee online.

Step 3: Enter your property information
Describe your property and upload photos. If your service offers it, fill out the disclosure form.

Step 4: Read and sign your listing agreement
Sign the listing agreement. Read your listing agreement thoroughly to ensure you can cancel without penalty and won’t owe a listing commission.

Step 5: Review your live listing
Once you complete your listing, the listing company will publish it to the local MLS, which means it will be visible to buyers’ agents. Depending on the company you choose, it will most likely be posted on real estate websites such as Zillow, Trulia, and Realtor.com. However, it can take a couple of days or longer to populate. It’s a good idea to review how your listing displays on real estate sites and verify that it’s correct and complete.

Are flat fee MLS listings effective in Idaho?

Flat-fee MLS listings in Idaho can be highly effective because all homebuyers use the Internet to search for new homes, and most online tools rely on local MLS databases for the latest listings. Buyers’ agents also depend on MLS data, making it one of the most powerful marketing opportunities for sellers to reach a broad audience.

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Will I save money with a flat fee MLS listing service?

While you save on commission fees, you may lose out in the long run. Research from the National Association of Realtors shows FSBO homes sold for around 23% less than homes sold by an agent. The median selling price for FSBO homes was just over $300,000, compared to over $400,000 for agent-sold homes.

So, while a flat fee MLS can be effective, remember that selling your home FSBO could result in less overall profit once everything is said and done.

What if I need to sell my Idaho home fast?

If you need to sell your home quickly, you have options. Consider working with a We Buy Houses company or an iBuyer. These companies will purchase your home in almost any condition, often in days.

Be prepared to lose money, though, as they typically pay less than what you might get on the open market. However, when time is of the essence, these can be a viable option.

HomeLight also offers Simple Sale, which can expedite the process or connect you with a local agent to provide more options.

What else should I know about selling a house in Idaho?

When selling a house in Idaho, it’s important to comply with local disclosure laws. Hiring a real estate attorney is advisable for FSBO sellers to navigate the complexities of disclosures and contracts, helping to avoid costly legal issues post-sale.

Key points to remember:

• Flat-fee services are paid upfront, regardless of whether the house sells, unlike traditional agents, whose fees are contingent on the sale.
• Some services may change names frequently, complicating the tracking of their success rate.
• These services often include the seller’s contact info directly in the listing, shifting more communication responsibilities to the seller.
• Unlike traditional agents, there may not be a dedicated individual to assist sellers through the listing service.
• While flat fee services charge a fixed rate, traditional agent fees can be negotiated.

Ready to sell your Idaho home?

• Selling your home FSBO is akin to taking on another full-time job.
• Traditional agents provide a knowledgeable partner focused on selling your property.
• FSBO sellers must handle many responsibilities typically managed by an agent.
• Flat fee MLS listing services can ease some challenges, offering varying levels of support.
• Cutting costs on agent commissions with flat fee services may not always be wise.
• Sellers must still cover the buyer’s agent commission and MLS service fees.
• FSBO homes often sell for less than homes sold by traditional agents.

HomeLight can connect you with a local agent in your area to help you manage the selling process effectively and maximize your return.

Header Image Source: (Dan Cutler / Unsplash)