What is a flat fee MLS listing service in Tennessee?

A flat fee listing service allows FSBO (For Sale By Owner) sellers to list their property on the local multiple listing service (MLS) without the assistance of a traditional real estate agent. The MLS is a platform that aggregates homes currently available on the market and facilitates the exchange of information among real estate professionals, ensuring properties gain maximum visibility among potential buyers.

Although typically restricted to licensed real estate professionals, flat fee MLS services provide a legal and effective bypass for FSBO sellers, enabling them to list on the MLS directly and enjoy the benefits of widespread listing visibility without incurring the full costs of hiring a traditional agent.

How much does a flat fee MLS service cost in Tennessee?

The cost of a flat fee MLS service in Tennessee varies widely, depending on the provider and the range of services included. Fees can start as low as $100 or less for the most basic listing services, offering a cost-effective solution for those looking to get their property on the MLS without a slew of additional features.

On the higher end, some packages can cost thousands of dollars, incorporating a variety of extras that can enhance the selling experience, such as more prominent listings, additional photos, or extended listing durations. Particularly, the more expensive plans may include a comparative market analysis, offering valuable insights into pricing your home competitively in the Tennessee market.

Flat fee MLS listing companies in Tennessee

Disclaimer: Individual program details can change — please visit a provider’s website for the most current information on rate packages, fees, service areas, and more. HomeLight always recommends doing your own research to determine which selling option is best for your situation.

How would a Tennessee seller benefit from a flat fee MLS service?

Opting for a flat fee MLS service in Tennessee could be the right move for sellers looking to maximize their profit by saving on the real estate commission. Typically, home sellers pay a commission ranging from 5% to 6%, split between the listing and buyer’s agents.

By choosing a flat fee MLS service, you effectively eliminate the listing agent’s portion of this fee, which can be about 2.5% to 3%. However, you’ll still cover the buyer’s agent commission and any additional services you employ for the sale.

This approach is particularly advantageous if you have a desirable property in a competitive market, wish to be intricately involved in the sale, or prefer not to work with a licensed agent. An FSBO sale grants you full control over the selling process, from setting the selling price to negotiating the final sale terms.

However, it requires a significant investment of time and energy. Here are the key responsibilities you’ll still need to manage if you are selling your home on your own:

1. Utilize market data to determine your home’s selling price.
2. Craft an appealing listing description and take professional photos.
3. Market your home, including showings and open houses.
4. Make state and federal disclosures.
5. Review offers, and counteroffers, and negotiate the sales price and contract terms.
6. Calculate closing costs and net proceeds and handle any issues with the appraisal or inspection.
7. Manage transfer taxes and gather necessary documentation.

Pros and cons of using a flat fee MLS listing service

Pros

Using a flat fee MLS listing service for your FSBO sale in Tennessee offers several advantages:

• Eliminates the listing agent commission: Typically, this would be about 2.5% to 3% of the sale price.
• Enables self-representation: You can represent yourself in the sale of your home.
• Offers control over the sale process: You manage all aspects of the sale from start to finish.
• Provides upfront known costs: You pay a fixed fee for the listing service.
• Ensures MLS and third-party website listings: Your home gets listed on the MLS, which feeds into various third-party websites, increasing visibility.
• Expands exposure: This service helps increase your exposure to traditional buyers and their agents.

Cons

However, there are some disadvantages to consider when using a flat-fee MLS listing service:

• Commission to buyer’s agent is still required: You must offer a commission to the buyer’s agent, typically about 3%.
• Personal responsibility for the sale: You’ll handle any issues that could delay or terminate the deal.
• Self-serve process: The process is managed without the guidance of a local expert, which might be challenging for some.
• Potential for legal risks: FSBO sellers might expose themselves to liability claims and other legal risks.
• Lower sale price: Homes might sell for less than they would if sold through a traditional real estate professional.

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

Listing your home with a flat fee MLS service in Tennessee involves a few key steps. This process lets you control your FSBO sale while ensuring your property is visible on the MLS and third-party websites. Here’s how to get started:

Step 1: Vet the flat fee MLS service

Begin by researching local flat fee MLS services to find the one that best suits your needs. Look at the different packages and rates they offer. It’s important to check Google reviews and verify the company’s reputation on the Better Business Bureau. Understand what your selected package includes, such as the number of information and photos you can list, which forms are provided at no extra cost, and what additional services might incur extra fees.

Step 2: Register and select a plan

Once you’ve chosen a service, register on their website, select the most suitable package for your sale, and pay the required upfront fee online.

Step 3: Enter your property information

The next step is to provide a detailed description of your property and upload photos. If offered by the service, complete and upload the necessary disclosure forms to accompany your listing.

Step 4: Read and sign your listing agreement

Carefully read through and sign the listing agreement provided by the service. Make sure the agreement allows you to cancel without facing any penalties and confirms that you won’t owe a listing commission beyond the flat fee already paid.

Step 5: Review your live listing

After completing and submitting your listing, the flat fee MLS service will publish it on the local MLS. This makes your property visible to buyers’ agents and, depending on the service, on popular real estate websites like Zillow, Trulia, and Realtor.com. Note that your listing might take a few days to appear on these sites. Once live, checking how your listing is presented on these platforms is crucial to ensure accuracy and completeness.

Are flat fee MLS listings effective in Tennessee?

In Tennessee, leveraging the local MLS through a flat fee service can be highly effective for sellers. Most homebuyers start their search online, where most platforms draw from local MLS databases to showcase the latest listings.

This helps your property reach a broad audience, including buyers’ agents who rely on MLS data to find homes that meet their clients’ criteria.

What's Your Tennessee Home Worth Today?

Tell us about your property and get a preliminary value estimate on your Tennessee home in as little as two minutes.

Get Estimate

Alternatives to flat fee MLS services in Tennessee:

If you’re reconsidering using a flat fee MLS service for selling your home in Tennessee, there are alternatives worth exploring:

• Flat fee real estate agent: A flat fee real estate agent can offer to list and sell your home for a set fee, usually between $3,000 to $5,000, with additional services possibly incurring extra costs. This option suits sellers who want more control over their sales but also want professional assistance.
• Discount brokers: For those seeking a middle ground, discount brokers accept a lower commission than traditional agents, offering basic services at a cost higher than a flat fee MLS but lower than full-service agents. Remember, you’ll still need to cover the buyer’s agent commission.
• Full-service, experienced real estate agent: Employing a full-service, experienced real estate agent provides comprehensive support, leveraging local market expertise to potentially sell your home quicker and for a higher price, a valuable option for those prioritizing ease and outcomes over cost.

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

Using a flat fee MLS listing service in Tennessee can help you save on commission fees traditionally paid to a listing agent. However, it’s essential to consider the broader financial implications of selling your home For Sale By Owner (FSBO).

According to research by the National Association of Realtors, FSBO homes tend to sell for approximately 23% less than homes sold through an agent. While the median sale price for FSBO homes was $310,000, homes sold with the help of an agent achieved a median sale price of $403,000.

Therefore, while a flat fee MLS listing can be a valuable tool for reaching potential buyers, weighing the potential savings against the possibility of a lower overall profit from your home sale is crucial.

What if I need to sell my Tennessee home fast?

If the clock is ticking and you need to sell your Tennessee home fast there are several options. You might consider selling to a”We Buy Houses” company or an iBuyer.

These companies are known for their quick purchasing process, often agreeing to purchase your home in a matter of days, regardless of its condition. It’s important to note that the trade-off for speed is typically a lower sale price than the open market.

Additionally, HomeLight’s Simple Sale platform offers an alternative route to expedite your home selling process. This service can fast-track the sale of your home or help you connect with a local agent to explore more traditional yet efficient selling options.

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

When selling a house in Tennessee, it’s important to be aware of and comply with local disclosure laws. While utilizing flat fee MLS listing services doesn’t absolve you of these responsibilities, understanding and adhering to these laws is essential for a successful sale. Although it’s not a requirement, considering the hire of a real estate attorney is strongly recommended for FSBO sellers. An attorney can help navigate the complexities of disclosures and contracts, ensuring you avoid potential legal issues that could arise after the sale.

Key points to remember:

• Flat fee services require payment upfront, unlike traditional agents who receive payment only upon selling your home.
• Some flat-fee MLS services may frequently change their names, making tracking their success rates and reliability challenging.
• Listings through these services often include the seller’s contact information, which means you’ll likely handle more communication with potential buyers directly.
• Unlike traditional real estate agents, there may not be a dedicated professional to guide you through the process when using a flat fee listing service.
• While you pay a fixed rate for flat fee services, the commission fees for traditional agents are negotiable, offering potential savings.

Ready to sell your Tennessee home?

Selling a home in Tennessee can feel like embarking on a journey that demands as much attention and effort as a full-time job. Opting for a traditional real estate agent can provide sellers with a knowledgeable partner dedicated to navigating the complexities of the real estate market and ensuring the sale of their property. Conversely, For Sale By Owner (FSBO) sellers take on many tasks typically managed by an agent, which can be particularly challenging for those with existing commitments and limited real estate knowledge.

Leveraging a flat fee MLS listing service can mitigate some of these burdens by providing different levels of support tailored to the seller’s needs. However, choosing a flat fee service primarily to save on agent commissions may not be the most prudent decision.

While it may reduce certain costs upfront, sellers are still responsible for the buyer’s agent commission and MLS service fees. Additionally, without a traditional agent’s expertise, the property’s final sale price could be lower. If you’re ready to sell your Tennessee home and seeking professional guidance, HomeLight can connect you with a local agent to navigate the selling process.

Header Image Source: (f11photo/DepositPhotos)