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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.
- Helps expand your exposure to traditional buyers and their agents.
Cons:
- Even with new commission rules, you may still need to offer to shoulder the buyer’s agent fee to help sell the property.
- You’ll be responsible for handling any issues that may delay or kill the deal.
- It’s a self-serve process that you’ll manage without the guidance of a local expert.
- You may be exposing yourself to liability claims and other legal risks.
- Your house will likely 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:
- Vet the flat fee MLS service. Research the local service you want, including packages and rates. 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.
- Register and select a plan. Register on the flat fee MLS company website, select the package you want, and pay the upfront fee online.
- Enter your property information. Describe your property and upload photos. If your service offers it, fill out the disclosure form.
- 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.
- 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 is displaying on real estate sites to be certain it’s correct and complete.
Are flat fee MLS listings effective in Rhode Island?
All homebuyers use the internet when searching for a new home, and with few exceptions, these online tools rely on local MLS databases to populate the most up-to-date listings. Buyers’ agents rely on MLS data as well, making it one of the most effective marketing opportunities for sellers.
Alternatives to flat fee MLS services in Rhode Island:
If you’re not sure a flat fee MLS service will fit your selling situation, here are some other options worth exploring:
- Flat fee agent. A flat fee real estate agent offers to list and sell your home and provides limited services for a flat rate rather than a percentage of the home sale. The average flat fee can range from $3,000 to $5,000, but some may charge for additional services. A flat fee agent might be a good option for a homeowner who wants more control of their home sale but needs the guidance of a professional. Read your listing contract carefully to find out exactly what services a flat fee agent provides and if there are any additional fees.
- Discount brokers. You can seek out the services of a low-commission or discount real estate broker. These companies or agents are typically more expensive than flat-fee MLS services. 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. Even with a discount broker on your side, the buyer may still negotiate for you to cover the full buyer’s agent commission.
- 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 will know local market trends, be able to leverage local connections with contractors and sales contacts, and have the proven skills to sell a home faster with the best results.
Will I save money with a flat fee MLS listing service?
Though you will save money on the commission fees, you may lose out in the long run. According to the National Association of Realtors, FSBO homes typically sell for about $380,000, while homes sold by agents reach a median of $435,000.
So, while a flat fee MLS can be an effective tool, it’s important to remember that selling your home FSBO could result in less overall profit once it is said and done.
What if I need to sell my Rhode Island 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 will typically pay less than if you sold your home on the open market. However, when time is of the essence, these can be a good option.
HomeLight also offers Simple Sale, which can expedite the process or connect you with a local agent to give you some more options.
What else should I know about selling a house in Rhode Island?
While there are no strict rules for using flat fee MLS listing services, sellers must comply with local disclosure laws. Although not mandatory, hiring a real estate attorney is advisable for FSBO sellers to manage the complexities of disclosures and contracts, avoiding 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.
- Often, these services include the seller’s contact info directly in the listing, shifting more communication responsibilities to the seller.
- There may not be a dedicated individual to assist sellers through the listing service, a stark contrast to traditional agents.
- While flat fee services charge a fixed rate, traditional agent fees can be negotiated.
Ready to sell your Rhode Island home?
Selling a house is akin to taking on another full-time job. With a traditional real estate agent, sellers gain a knowledgeable partner focused on selling their property. Conversely, FSBO sellers must tackle many responsibilities typically handled by an agent. This can be daunting, especially for those with existing full-time commitments and limited knowledge of the real estate process.
Utilizing a flat-fee MLS listing service can ease some of these challenges, as the service offers varying levels of support depending on the package chosen.
HomeLight can connect you with a local agent in your area to help you manage the process and ensure a successful sale.
Editor’s note: This post is for educational purposes only. Links and mentions of Rhode Island flat fee MLS companies in this post do not constitute an endorsement.
Header Image Source: (sepavone/DepositPhotos)
