Traditionally, selling commission in most North American markets through MLS have been between 5% an 6% of the sale price. Till the advent of internet, the information on properties, their values, taxes and other factors that affect the values were available only through real estate brokerages who kept and maintained the databases of such valuable information. Brokerages charged a fair price for providing access to such information and selling a property through MLS.
Then the era of free and easy access to information began, internet was in vogue. This also brought in the Flat Fee MLS service in vogue. Though, flat fee MLS service has been around for several decades, its share of the total real estate market was very low. Lately with consumers becoming more concerned about the cost of selling, Flat Fee MLS listing has caught the attention of the public and media.
To really understand selling through MLS, one must know and understand how the process works. When you hire a Real Estate Brokerage to put your property for sale through the multiple listing service, the Real Estate Brokerage becomes the listing Brokerage / Agent of your property.
The information about your properly is processed through the MLS system. All members of the real estate board have access to the MLS system. When a member of the real estate board, acting through the MLS system, brings an offer and the property is sold, he is called a Cooperating Broker.
The fee / commission that you pay for selling is split between the two brokerages, traditionally on a 50/50 basis.
Flat FEE MLS refers to the commission of the Listing Broker, who offers MLS services for a Flat Fee. Flat Fee means, that Listing broker's fee is not a percentage of the selling price, it is fixed. Though the cooperating brokerage can also work on a flat fee, in the current context of Flat Fee, we are only discussing Flat Fee for the Listing Brokerage. The Flat Fee varies from brokerage to brokerage and so do the services offered.
Some brokers, provide you full service at a much lower price than the conventional five or six percent of the sale price. Some offer low Flat Fee MLS but no other support or hardly any support. Many others have a combination of small fee that covers some costs of providing a MLS service and then the total fee is heavily discounted. There is also a trend where instead of buying the bundled MLS service, you can buy only those services that you need.
Marketing through MLS service can be split into several distinct steps and packages of activities.
1. Processing a MLS Listing: Collecting the property information, legal details, dimensions, layout, property features, taking photos and putting all this in the format that is acceptable for processing it on the MLS system, Listing on www.realtor.ca / www.realtor.com
2. Marketing services: Signage, advertising in written, web and other electronic media to generate interest in the property
3. Servicing the Listing: 24 Hour Appointment Desk, Follow Up with Prospective Buyers, Agents, Brokers, Bank / Mortgage company, Liaison between Buyer& Seller's Lawyers, Home Inspector, Appraiser, 24 hour Answering Service,
4. Negotiating a Purchase and sale agreement: Any One Offer or Multiple Offers / Follow up till Closing with Cooperating Salesperson / Broker / Lawyers / Home Inspector / Appraiser / Mortgage Broker / Handling of Amendments / Waivers & Disbursements of Trust Funds, To The Other Broker / To You / Others
5. Consultation: Consultation and advice throughout the selling process
By hiring only those services that you need, you can cut out the waste and save on the costs of selling. In a nutshell there are several business models offering you different MLS packages to save you money.
Don't let anyone discourage you from exploring the different options to save money. Also use your own wisdom, there are people, some with vested interests, who will tell you that using a Flat Fee MLS service will not work. Never mind them and their ignorant talk.
There is no glory in paying more for a MLS listing, for that matter there is no glory in paying more for ANY thing, when you can get the same for less!
Saving money on MLS listing does not mean that you need to compromise your financial interests. Don't go for the lowest price, go for the best value and that may be the middle of the road approach.
Once you decide to explore other options for a MLS listing, compare agent's resumes; look for their education, training, status in the real estate industry, their experience and expertise. Check their credentials on the net by typing their names in the Google search box. The agents who do not show up in the search results, for all matters, do not exist. Go with the ones, who pass these tests. You may think that you do not need their help or expertise; however, if the situation arises and you need expert advice, it will be too late. So be a wise consumer.
Now that you understand Flat Fee MLS listing, when the time comes to sell your property, you will be well prepared and equipped with proper questions to ask; you will be able to identify and pick the services you want and also save money in the process.
Source: EzineArticles.com
Then the era of free and easy access to information began, internet was in vogue. This also brought in the Flat Fee MLS service in vogue. Though, flat fee MLS service has been around for several decades, its share of the total real estate market was very low. Lately with consumers becoming more concerned about the cost of selling, Flat Fee MLS listing has caught the attention of the public and media.
To really understand selling through MLS, one must know and understand how the process works. When you hire a Real Estate Brokerage to put your property for sale through the multiple listing service, the Real Estate Brokerage becomes the listing Brokerage / Agent of your property.
The information about your properly is processed through the MLS system. All members of the real estate board have access to the MLS system. When a member of the real estate board, acting through the MLS system, brings an offer and the property is sold, he is called a Cooperating Broker.
The fee / commission that you pay for selling is split between the two brokerages, traditionally on a 50/50 basis.
Flat FEE MLS refers to the commission of the Listing Broker, who offers MLS services for a Flat Fee. Flat Fee means, that Listing broker's fee is not a percentage of the selling price, it is fixed. Though the cooperating brokerage can also work on a flat fee, in the current context of Flat Fee, we are only discussing Flat Fee for the Listing Brokerage. The Flat Fee varies from brokerage to brokerage and so do the services offered.
Some brokers, provide you full service at a much lower price than the conventional five or six percent of the sale price. Some offer low Flat Fee MLS but no other support or hardly any support. Many others have a combination of small fee that covers some costs of providing a MLS service and then the total fee is heavily discounted. There is also a trend where instead of buying the bundled MLS service, you can buy only those services that you need.
Marketing through MLS service can be split into several distinct steps and packages of activities.
1. Processing a MLS Listing: Collecting the property information, legal details, dimensions, layout, property features, taking photos and putting all this in the format that is acceptable for processing it on the MLS system, Listing on www.realtor.ca / www.realtor.com
2. Marketing services: Signage, advertising in written, web and other electronic media to generate interest in the property
3. Servicing the Listing: 24 Hour Appointment Desk, Follow Up with Prospective Buyers, Agents, Brokers, Bank / Mortgage company, Liaison between Buyer& Seller's Lawyers, Home Inspector, Appraiser, 24 hour Answering Service,
4. Negotiating a Purchase and sale agreement: Any One Offer or Multiple Offers / Follow up till Closing with Cooperating Salesperson / Broker / Lawyers / Home Inspector / Appraiser / Mortgage Broker / Handling of Amendments / Waivers & Disbursements of Trust Funds, To The Other Broker / To You / Others
5. Consultation: Consultation and advice throughout the selling process
By hiring only those services that you need, you can cut out the waste and save on the costs of selling. In a nutshell there are several business models offering you different MLS packages to save you money.
Don't let anyone discourage you from exploring the different options to save money. Also use your own wisdom, there are people, some with vested interests, who will tell you that using a Flat Fee MLS service will not work. Never mind them and their ignorant talk.
There is no glory in paying more for a MLS listing, for that matter there is no glory in paying more for ANY thing, when you can get the same for less!
Saving money on MLS listing does not mean that you need to compromise your financial interests. Don't go for the lowest price, go for the best value and that may be the middle of the road approach.
Once you decide to explore other options for a MLS listing, compare agent's resumes; look for their education, training, status in the real estate industry, their experience and expertise. Check their credentials on the net by typing their names in the Google search box. The agents who do not show up in the search results, for all matters, do not exist. Go with the ones, who pass these tests. You may think that you do not need their help or expertise; however, if the situation arises and you need expert advice, it will be too late. So be a wise consumer.
Now that you understand Flat Fee MLS listing, when the time comes to sell your property, you will be well prepared and equipped with proper questions to ask; you will be able to identify and pick the services you want and also save money in the process.
Source: EzineArticles.com
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