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I've been planning on selling my home FSBO and realize that one way or another I should list on the MLS for maximum exposure. I've been considering one of those generic Internet flat fee sites offering services basic MLS listing packages for $300, etc. until I just recently ran across a local Realtor offering a listing package for $1000 flat fee plus 3% offered to the buyer's agent.
Included in the $1000 is:
-Photos of the home.
-MLS lock box.
-Signs.
-MLS submission (for all major real estate websites)
-Handling of all paperwork and negotiations from start to finish.
No local advertising in the paper. No flyers printed. I would field phone calls from buyer's agents wanting to view the home.
I'm confident in my ability to take appropriate photos of my home and already have professional-looking FSBO signs. The lock box probably isn't urgent as I have dogs at home that I plan on taking offsite when buyers visit (ie, while my showing times are flexible, I'll need to come home anyway at the time of the showing and will leave the home unlocked). I've gone through one FSBO transaction as a seller before with vacant land that was very straightforward, though I'm less clear of the paperwork involved with an actual home sale. I feel reasonably comfortable analyzing a submitted offer, but obviously would feel more comfortable with an agent looking it over. I also would offer the 3% buyers commission either way. I've also already had two comparative market analysis's completed with similar results, so that I feel comfortable with my potential listing price.
So my question is this: Is having the sign of a local agency, having a local agent handle closing paperwork, and having an MLS lock box worth the extra $700? Are buyer's agents more likely to check out a home listed by a local agent MLS versus a generic flat fee MLS agency?
I'm being laid off from job Decemebr 31st, so every dollar is reasonably important at the moment. Thanks.
The number one reason why FSBO and flat fee listings are not as effective as they could be, is because the property is not priced to sell. You have to be in a position to defend your home's value with factual closed comps. Every new closed comps , new listing and price adjustment on comparable homes impacts the value of your home.
I don't know what state you're in, but Texas passed a "limited services requirement" almost 2 years ago. Agents are not "allowed" to just list properties in the MLS for a flat fee anymore. Double check your area laws to see if the $300 to list in MLS is even legal. Many Texas agents are getting fined and licenses taken away for trying to skirt this new law.
I don't know what state you're in, but Texas passed a "limited services requirement" almost 2 years ago. Agents are not "allowed" to just list properties in the MLS for a flat fee anymore. Double check your area laws to see if the $300 to list in MLS is even legal. Many Texas agents are getting fined and licenses taken away for trying to skirt this new law.
What requirement are you referring to? According to the Texas Real Estate Commission's website, the limited services requirement that was being considered by TREC was abandoned in 2005. What's more, a quick look at the statute that was being considered for modification shows no real limit on limited service agents.
And in any event, there is no penalty to a consumer for using a limited service agent who does not provide all the services that are required by law.
Stop trying to scare people into keeping you employed.
Located in Washington state. It's not really being marketed as flat fee just for MLS, more of a flat fee for some limited services including MLS, but no additional advertising.
So that's my main question: Will I find it more difficult to market my own home if I'm listed with some Internet flat fee company, versus a local agent listing? Would you as a buyer's agent feel better about dealing with a local agent to the point where you might avoid showing a flat fee MLS home?
Located in Washington state. It's not really being marketed as flat fee just for MLS, more of a flat fee for some limited services including MLS, but no additional advertising.
So that's my main question: Will I find it more difficult to market my own home if I'm listed with some Internet flat fee company, versus a local agent listing? Would you as a buyer's agent feel better about dealing with a local agent to the point where you might avoid showing a flat fee MLS home?
I do flat service rates and the model is a fee-for-service model and have no trouble getting agents to show my homes. The limited representations listings ($300-$500) do deter some agents.
What FalconHead is referring to, I think, is the minimum service requirements that a few states have such as presenting offers, etc. MLS only is still allowed in every state, but some states require that if an offer is sent to the agent instead of the client, it get presented. I guess some buyer's agents were refusing to send offers directly to sellers and would send them to the limited rep agents and then the offer would never get to the seller.
All you are doing it getting a discounted stated rate instead of paying a full commission. If you have no trouble fielding the calls, why not? You say they handle all the paper work for their fee, so it's not like you aren't going to have to do that on your own. Doesn't sound like a no-representation situation, just sounds like they just don't advertise or field showing calls and for that give you a discounted rate. I don't see a problem with it.
What FalconHead is referring to, I think, is the minimum service requirements that a few states have such as presenting offers, etc. MLS only is still allowed in every state, but some states require that if an offer is sent to the agent instead of the client, it get presented. I guess some buyer's agents were refusing to send offers directly to sellers and would send them to the limited rep agents and then the offer would never get to the seller.
To an extent, this is part of it, but it goes further. It was put into place Sept 2006, if I remember the month correctly. The listing agents must negotiate on the behalf of their clients, they must provide comps to their clients, they must help get their clients to closing, and several other "minimum requirements".
THe listing agent cannot just say, "Send offers to seller at this number." The listing agent cannot just say, "All Negotiations are to be done directly by seller." These are a couple of the most common things that used to be put in the MLS, but are not allowed anymore, and agents caught not doing their minimum requirements are getting slapped with a professional standards hearing.
I'm on the Professional Standards committee for the state of Texas and I'm the Vice Chair for the grievance committee for the Austin Board of Realtors. I think I know what I'm talking about, but thanks Austin-Willy for pointing out again that you don't know it all.
To an extent, this is part of it, but it goes further. It was put into place Sept 2006, if I remember the month correctly. The listing agents must negotiate on the behalf of their clients, they must provide comps to their clients, they must help get their clients to closing, and several other "minimum requirements".
THe listing agent cannot just say, "Send offers to seller at this number." The listing agent cannot just say, "All Negotiations are to be done directly by seller." These are a couple of the most common things that used to be put in the MLS, but are not allowed anymore, and agents caught not doing their minimum requirements are getting slapped with a professional standards hearing.
I'm on the Professional Standards committee for the state of Texas and I'm the Vice Chair for the grievance committee for the Austin Board of Realtors. I think I know what I'm talking about, but thanks Austin-Willy for pointing out again that you don't know it all.
So post a link to the statute or regulations vice chair.
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