How to Sell Your FSBO Home with a Flat Fee MLS listing company

Comparison of flat fee MLS companies for FSBOs

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What sellers might benefit from a flat fee MLS service?

A flat fee MLS service might be the right choice for you if:

You’re looking to save on the cost of a real estate commission.
Homesellers who hire a listing agent typically pay a 5% to 6% real estate commission, which is split between the listing agent and the buyer’s agent. A listing service can help you eliminate the cost of a listing agent (2.5% to 3%). Instead, you’ll pay a flat fee of $89 to $1,299, depending on the company and level of service you choose. But, you’ll still pay the buyer’s commission in addition to the cost of any other services you use to help you sell your home.

You have a desirable home and it’s a hot market.
A desirable home in a hot market may sell itself. Listing your home in the MLS may bring multiple buyers and competitive offers your way. However, you’ll still be responsible for all aspects of your home sale.

You want to be very involved in your home sale.
If you have previous home selling experience, and you’re craving a challenge, you may want to take full control of your home sale. A FSBO sale may be your chance to shine. A flat fee MLS is the first step in your home-selling journey.

You don’t want to work with a listing agent.
Not all agents are the same. That said, for whatever reason you choose not to work with an agent, a flat fee MLS company allows you to forgo the services of a licensed agent and still get your home listed on the MLS.

You have the time and energy to invest in the home-selling process.
Depending on the level of service you purchase from a flat fee company, you may need to take on a variety of tasks normally handled by a real estate agent.

“Until they sell their own house, a lot of people don’t realize what goes into listing, marketing, selling a property, and overseeing the transaction,” says Keyser.

Even with a flat fee listing service, you’ll typically need the time, energy and know-how to:

• Use market data to set the best selling price for your home.
• Write a listing description that appeals to buyers and their agents.
• Take professional photos of your property.
• Market and advertise your home.
• Make the state and federal required disclosures.
• Coordinate showings and open houses.
• Review offers and make counteroffers.
• Negotiate the sales price.
• Understand and negotiate the terms of your contract.
• Calculate your closing costs and your net proceeds.
• Navigate any issues that may come up with the appraisal or inspection.
• Handle any local real estate transfer taxes.
• Get the required documentation together.

Pros and cons of using a flat fee MLS listing service

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. Be sure to 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 buyer 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 is displaying on real estate sites to be certain it’s correct and complete.

Are flat fee MLS listings effective?

Almost all homebuyers use online tools when searching for a new home — and with few exceptions, these online tools are relying on the local MLS databases to populate the most up-to-date listings.

Buyers’ agents also rely on MLS data to find homes that fit their client’s needs, download detailed information and disclosures, and schedule showings. Because the local MLS is one of the best ways to market your home and get it in front of buyers, it’s crucial to list your FSBO home on the local MLS.

Alternatives to a flat fee MLS service

Option 1: Flat fee real estate agent

A flat fee real estate agent might be a good option if you want more control of your home sale but need the guidance of a professional. A flat fee agent will list and sell your home and provide limited services. The average cost for a flat fee agent is $3,000 to $5,000. However, some may charge an additional percentage at closing, so read your listing agreement carefully.

Option 2: Discount real estate brokers

You can seek out the services of a low-commission or discount real estate broker. These companies or agents typically charge more (1% to 2% of your home sale) than flat fee agents. However, they will accept a reduced commission and often still provide some of the basic services and support you might receive from a full-commission agent. With a discount broker, you will still be on the hook for the full buyer’s commission. If you’re considering this route, you may want to check with local agents to see if they would be willing to negotiate a discounted commission.

Option 3: For sale by owner (FSBO) platform

In addition to flat fee listings, online FSBO platforms may offer FSBO-only (non-MLS) listings, in-depth self-service FSBO platforms, and/or limited agent assistance for a flat fee or discounted commission.

Some of the flat fee MLS companies we’ve listed above have packages that fall in this platform option category. Others include:

• Fizber.com
• beycome.com
• Homecoin.com
• ListWithClever.com
• ForSaleByOwner.com

Option 4: Full-service, experienced real estate agent

List with a top-performing local real estate agent, who will provide dedicated full services in addition to listing your home. An experienced local agent has the advantage of knowing current market trends for your area, leveraging local connections with contractors and sales contacts, and having the professional skills to sell your home faster with the best results.

“We live in a free market where you can sell your home online if you want,” says Keyser. “If it was easy to sell your home and for the most amount of money, we’d see more of it. But year over year, nine out of ten people are using an agent, because there’s a real benefit there.”

Some of the benefits of using a full-service, full-commission real estate agent or broker include:

• Accurate pricing to fit market conditions.
• Ability to sell your home at a higher price.
• Access to a network of skilled professionals.
• Home preparation recommendations and services.
• Appraisal expertise for the best valuation.
• Guidance through inspection issues.
• Elevated marketing and broader visibility.
• Takes pressure and workload off the sellers.
• Contract savviness to avoid delays.
• Professional negotiation skills.

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

While it’s possible to save money on the listing agent commission fee, you may be losing money in the long run. Not only will you be sacrificing time and work, but you will also be proceeding without the expertise of a professional who could save or earn you money later when negotiating with a potential buyer.

If you’re considering using a flat fee listing service, know that the money you save in commission may be offset by the selling price of your home. According to the National Association of Realtors (NAR), sellers who use an agent to sell a home typically make $105,000 more on their sale price than FSBO sellers.

“The biggest benefit to using a flat fee service is saving the real estate commission. But even with a flat fee listing, you’re [typically] getting less money than you would paying a fee to a Realtor®. And that’s directly tied to incorrectly pricing your property and not negotiating the best price,” cautions Keyser.

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What if I need to sell my home fast?

If you need to sell your home fast, you can seek a cash offer from a house-buying company, such as an iBuyer or a We Buy Houses investor group.

One of the most convenient ways to sell your home fast is HomeLight’s Simple Sale platform. You can skip repairs, showings, and commissions and receive a no-obligation cash offer in as little as a week. If you accept the offer, you can close in as few as 10 days.

What else should I know about selling a house FSBO?

Depending on the state or region where you live, disclosure laws may be non-optional. For more information about required disclosures, search for the disclosure form from your state legislature or local real estate association.

In addition to making the required disclosures, some states require an attorney to sell your FSBO home. Even if your state does not require an attorney for your home sale, it’s highly recommended that you hire one to help you understand the terms of your contract, oversee your documentation, and reduce your risk of liability.

You’ll also want to make sure that deadlines and obligations are met when you enter into a contract. If your flat fee service doesn’t have a system to help with that, you’ll need to keep track.

“You can get yourself in trouble just by not knowing what you’re doing,” Keyser explains. “I worked with a seller who had tried to sell FSBO and entered a contingent contract, and the sale was going nowhere. The buyer never paid in their escrow, so the house was sitting in no man’s land for months with no closing date and no accountability. At the same time, the seller missed an opportunity on the buy side for a home they really loved. It was simple to get them out of the deal because the buyer hadn’t held up their end. We sold the property for $50,000 more than their FSBO contract.”

Ready to sell your home?

Listing a house by owner in your local MLS is the first step to getting the maximum exposure of your FSBO home. But doing so requires the assistance of a listing agent or the services of a flat fee MLS company.

With a flat fee listing service, you can avoid paying the listing agent commission and maintain complete control of your home sale. While you may save on the listing commission, know that FSBO listings tend to sell for less than agent-assisted sales. An experienced agent who knows the area can help you maximize your sale price and get a premium offer. This can help to offset or, in some cases, more than make up for the cost of commission.

If you choose to go FSBO, you should have a good idea now of what to expect from a flat fee MLS listing company.

If you choose to maximize your profit and save the time and potential headaches of a FSBO sale, HomeLight can connect you with some of the top-performing agents in your local market.

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