Do flat-rate MLS listings get treated differently by agents? (flat fee, sales)

[nativeNorthCaro]

I'm interested to know what other's experience has been with flat-rate MLS listings in the triangle. I'm doing a FSBO (my 3rd) and it's the first time I've used flat-rate MLS. My last home sold (7/2006) within days of listing it in a local FSBO magazine and we got a good amount of traffic from the listing. Based on that experience, when we decided to sell our current home this fall, I did another listing with the same folks, but the experience has been drastically different. I realize that I'm comparing different neighborhoods and different market conditions, but, I've gotten 0 traffic from that listing (6 week listing which is two magazine print cycles). After three weeks of no traffic, I did a flat-rate MLS listing in Triangle MLS with one of the national outfits. Shortly afterwards, I started to get showings from brokers. The number of showings is still increasing, which is good, but I'm curious about a couple of things. I understand there may be a justifiable bias for brokers to not show FSBO's that aren't listed in MLS because they often have no incentive to do so (i.e. owner is either not willing to pay a commission or agent has no easy way to know if they will), but I'm wondering if there a similar bias against FSBO's that are listed in MLS via flat-rate. In addition to the obvious visibility provided by MLS, it also allows a FSBO to clearly state how much, if any, commission you're willing to pay (I chose 2.4%). By doing so, it would seem that for a buyer's agent, there is no dis-incentive to not show my listing simply because it is a FSBO, and that appears to be the case, but I'm wondering what other's thoughts on this are? Based on feedback I'm getting from several of the showing agents, they didn't even notice that it wasn't a listing from a full-service agency...
I'm also curious about other FSBO's experience in the Triangle with the Saturday Real Estate expo in local newspaper. I placed a 1/4 page ad for several consecutive weekends and got no traffic from it.

[sls76]

I don't have any FSBO experience, but isn't 2.4% slightly under what buyer's agents typically get? In our sales we've paid the buyer's agents 3% twice and 2.5% once (but she was also our agent so she made 5% and we were offering a buyer's agent 4% to increase showings). If you are slightly below average, the disincentive would be that they're making a little less, but think they will be doing a lot more work (they don't know that you're a FSBO pro). I read an article recently that in the current (national) market realtors' average commissions were going up. I know when everything is selling it doesn't really matter, but when it's slow you need an advantage (whether you pay the buyer's agent more, have a really well connected agent, whatever).

[coltank]

It's possible you could be getting some bias, b/c it encourages the use of discount brokers if the homes sell just the same. I would think it also would make the transaction more difficult for the buyer's agent, since you as the seller may not know exactly all the laws, etc. I'm sure some of our Brokers here will add their wisdom.

[Stu Barnes]

Originally Posted by nativeNorthCaro

I'm interested to know what other's experience has been with flat-rate MLS listings in the triangle. I'm doing a FSBO (my 3rd) and it's the first time I've used flat-rate MLS. My last home sold (7/2006) within days of listing it in a local FSBO magazine and we got a good amount of traffic from the listing. Based on that experience, when we decided to sell our current home this fall, I did another listing with the same folks, but the experience has been drastically different. I realize that I'm comparing different neighborhoods and different market conditions, but, I've gotten 0 traffic from that listing (6 week listing which is two magazine print cycles). After three weeks of no traffic, I did a flat-rate MLS listing in Triangle MLS with one of the national outfits. Shortly afterwards, I started to get showings from brokers. The number of showings is still increasing, which is good, but I'm curious about a couple of things. I understand there may be a justifiable bias for brokers to not show FSBO's that aren't listed in MLS because they often have no incentive to do so (i.e. owner is either not willing to pay a commission or agent has no easy way to know if they will), but I'm wondering if there a similar bias against FSBO's that are listed in MLS via flat-rate. In addition to the obvious visibility provided by MLS, it also allows a FSBO to clearly state how much, if any, commission you're willing to pay (I chose 2.4%). By doing so, it would seem that for a buyer's agent, there is no dis-incentive to not show my listing simply because it is a FSBO, and that appears to be the case, but I'm wondering what other's thoughts on this are? Based on feedback I'm getting from several of the showing agents, they didn't even notice that it wasn't a listing from a full-service agency...
I'm also curious about other FSBO's experience in the Triangle with the Saturday Real Estate expo in local newspaper. I placed a 1/4 page ad for several consecutive weekends and got no traffic from it.

In my experience their is no bias towards flat rate listings....if any some agents have it towards the flat rate listing company not the seller. When it's flat rate the seller more than likely is going to pay a buyer's agent and that is important to get your home shown. Now is a SLOW time, but if it is on the MLS it will show. I've said this before, but if it's on the MLS and priced right it will sell.....but the (listing) agent earns their commission from contract to close; so since flat rates usually don't represent the seller, they just put it on the MLS; be carefull and read contracts carefully so it will go to closing.

Some agents my have a bias towards fsbo only because it is sometimes harder to get them to pay a buyer's agent, but realistically and ethically, any home that matches our buyer's needs, we are suppose to present to them and show ....but how do you prove that? This business is full of scenarios like that, but bottom line is whether you list with a big company, small company, flat rate, fsbo....whatever, it would be prudent to cooperate with buyer's agents because they bring that buyer in. Most buyers agent receive 2.4; 2.5 for new construction and fsbo usually should offer at least that though some agents ask fsbo's to pay 3% since they are technically handling both sides...BUT all commissions are negotiable.

Lastly, don't waste your money on print ads....it doesn't work....at all. Hope this helps.

[sls76]

Why would you pretend you are a client when you are the owner or an employee? Just be upfront--especially since your profile has List-to-sell's website as your homepage. I'm not sure being sneaky is the best way to attract clients.

[Stu Barnes]

Originally Posted by sls76

Why would you pretend you are a client when you are the owner or an employee? Just be upfront--especially since your profile has List-to-sell's website as your homepage. I'm not sure being sneaky is the best way to attract clients.

I agree....and my post was not an endorsement for any flat fee or full service company....just my opinion on how things work..