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Pros and cons of using a flat fee MLS listing service
Before choosing a flat fee MLS listing service, Knoxville home sellers should weigh the benefits and drawbacks of this approach. While it can save money on listing agent fees, it also requires significant effort on the seller’s part.
Pros:
- Eliminate the listing agent commission: Typically 2.5% to 3% in savings.
- Maintain full control: You manage pricing, marketing, and negotiations.
- Pay upfront, known costs: Unlike traditional commissions, fees are set in advance.
- MLS exposure: Your home appears on the MLS and third-party real estate websites.
- Attract more buyers: Expands visibility to buyers and their agents.
Cons:
- You still pay a buyer’s agent commission: Often 2.5% to 3%—unless you are selling directly to a buyer.
- More responsibility: Pricing, marketing, and negotiations fall entirely on you.
- Potential legal risks: Handling disclosures and contracts incorrectly can lead to issues.
- Less buyer trust: Some buyers prefer working with an agent-led listing.
- Possible lower sale price: FSBO homes often sell for less than agent-assisted sales.
How do I list my home with a flat fee MLS service?
Once you decide to use a flat fee MLS listing service, follow these steps to get your FSBO home on the MLS:
Step 1: Research flat fee MLS services
Compare local flat fee MLS providers in Knoxville. Look at pricing, included services, and customer reviews. Check the Better Business Bureau to ensure the company is reputable.
Step 2: Choose a package and register
Visit the provider’s website, select the service package that fits your needs, and pay the upfront fee.
Step 3: Submit your listing details
Enter information about your home, including square footage, number of bedrooms and bathrooms, and special features. Upload high-quality photos and, if applicable, complete any disclosure forms.
Step 4: Sign the listing agreement
Carefully review and sign the listing agreement. Make sure you understand the cancellation policy and confirm that you won’t owe a commission to the listing company.
Step 5: Review your live listing
Once published, check how your listing appears on the MLS and third-party sites like Zillow and Realtor.com. Some listings may take a few days to populate. Confirm that your contact details are correct so buyers and agents can reach you.
Are flat fee MLS listings effective in Knoxville?
A flat fee MLS listing can be an effective way to market your Knoxville home. Since most buyers start their home search online, having your property listed on the multiple listing service ensures it appears on major real estate websites where buyers and their agents look for homes.
Buyers’ agents rely on MLS data to find properties that match their clients’ needs, making MLS exposure a key factor in a successful home sale. However, while a flat fee MLS listing boosts visibility, FSBO sellers should be prepared to handle pricing, showings, negotiations, and paperwork on their own.
Alternatives to flat fee MLS services in Knoxville:
If a flat fee MLS service doesn’t seem like the right fit for your home sale, here are a few other options to consider:
Flat fee real estate agent
A flat fee real estate agent lists and sells your home for a set rate rather than charging a percentage of the sale price. These fees typically range from $3,000 to $5,000, but additional services may come at an extra cost. This option provides some agent support while still offering savings compared to a full-service commission.
Discount real estate brokers
A discount real estate broker charges a lower commission than traditional agents, often around 1% to 2%. While more expensive than a flat fee MLS service, they typically offer more hands-on assistance with marketing, pricing, and negotiations. However, sellers still need to pay the full buyer’s agent commission.
Full-service real estate agent
For sellers who want expert guidance, working with a local real estate agent provides full-service support, including pricing strategy, marketing, and negotiation expertise. While commission costs are higher, an experienced agent can often help sell a home faster and for a higher price.
Will I save money with a flat fee MLS listing service?
Using a flat fee MLS listing service can reduce commission costs, but it may not always result in higher overall savings. While you’ll avoid paying a listing agent’s commission, you’ll still be responsible for the buyer’s agent commission and any additional costs associated with marketing and selling your home.
According to the National Association of Realtors, FSBO homes sell for nearly 14% less than those sold with an agent. The median FSBO sale price is about $380,000, compared to $435,000 for homes sold with an agent. Additionally, nearly 40% of FSBO sellers sell to a friend or neighbor, with an even lower median sale price of $345,000.
While a flat fee MLS service can help cut listing costs, sellers should consider the potential impact on their final sale price before choosing the FSBO route.
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