FSBOs: Can they list on the MLS?
MLS: The List You Actually Want to Be in
Similar to the famous “Does it make a sound if a tree falls in the forest without anyone around to hear it?“ dilemma, for sale by owner sellers must consider a similar question: If the listing for a house is not seen, will it ever sell?
You should not expect to sell your FSBO home without proper marketing. Visibility is an important factor in getting it sold.
Multiple listing services are the holy grail of home listing databases, where real estate listings are typically posted. It can be difficult for FSBO sellers to get their listings on your area’s MLS, but if you do, you’ll be able to compete with those represented by a licensed agent.
How Does an MLS Work?
A Multiple Listing Service (MLS) is a powerful and essential tool for the real estate industry. It allows real estate agents to list their properties and share them with other agents in order to reach more potential buyers. MLSs are exclusive databases that contain vital information about properties, such as price, location, property details, photographs, and contact information of the listing agent.
You might think that the MLS sounds a lot like popular home listing websites (like Zillow, Trulia, and Realtor.com). The MLS database has been around for a long time (before the internet, brokers would print out listings and send them around) and was a way to keep each other informed about active listings.
Real estate professionals have access to MLS databases, which contain more information than those public listing sites, including seller contact information and commission percentages from sellers.
MLS service with flat fees
You can work with some licensed real estate brokers to list your property on the MLS for a one-time fee through their flat fee MLS listing service. Short of becoming a licensed real estate agent and paying for membership yourself, the only way to get your FSBO home onto the MLS is with a flat fee MLS listing.
A flat fee MLS listing is a pretty good deal for FSBO sellers since they’re able to get their properties listed in a database that most buyer’s agents use to find houses for their clients without paying a commission to the listing agent. Additionally, when you’re on the MLS, your listing will appear on all major public-facing listing sites, giving you maximum exposure to both agents and new buyers.
Conduct some research on brokers who offer flat fee MLS listings in your area if you’re interested in this service. You can often choose from several flat fee packages at different price points, so you can decide if you just want an MLS listing with a few pictures, or if you also want assistance with some of the more technical aspects of selling a home.
An MLS listing with a broker typically costs about a few hundred dollars, depending on what services they offer. A flat-fee MLS listing can cost around $100, with shorter-term listings limiting the number of photos you can use to just a few, or a broker can handle many of the same tasks as a traditional real estate agent for upwards of $1,000.
MLS alternatives
The best way to market your house is to come up with a plan for how you’re going to market it if you don’t want to pay to list it on the local MLS.
The listings of FSBO sellers can be uploaded directly to certain online listing sites, like Zillow, for example. A yard sign and an advertisement in the local newspaper were once the standard forms of advertising for FSBO homes since home buyers now browse for homes online so frequently. Therefore, your home will have a much greater chance of being seen compared to FSBO homes in the past.
Consider advertising your home on other online marketplaces, such as Craigslist.
What are the best practices for FSBO sellers?
FSBOs can save a significant amount of money by listing their homes in your area’s MLS for a flat fee, depending on how much they sell for and how much commission they would pay an agent. As an alternative, if you’re committed to doing a true FSBO sale and saving money wherever you can, it is still possible to attract buyers without having your home listed on the MLS. You may just need to put in more effort.
The amount and effectiveness of your marketing ultimately depend on you. A flat-fee listing service might be worth it for those looking for an easy selling experience, while those who want to save the most money might be less inclined.