If you have tried the “for sale by owner route” in selling your property then you know it is a cumbersome and poor option of selling your property on your own.
You are basically forced in getting an agent that is not qualified to find a great FSBO (For Sale By Owner) by getting them to bring 20% of the sale of your property and having the 20% of the sale come from a third party.
Out of the 1 out of 20 agents you get, whoever gives you the lead can you believe is reliable.
That is why people who are looking at using a flat fee MLS service are now turning to the discount MLS brokerages, which are giving access to thousands of hot FSBO real estate markets. By simply placing your listing on their MLS program, agents will have access to an incredible number of sellers who are looking to sell their home and are willing to set up a down payment of up to $2,500, which allows the buyer to get into your property.
So what is a typical number of leads using a 1% discount MLS program? The average number of leads from a discount MLS listing company is between 4-6, with more being bigger deals with more units.
This is normally the way people sell their homes when they are using a Realtor-getting a good agent to find a good deal for them, then having that agent advertise your home for sale, and hopefully getting a buyer to come in, grab your home, and pay their agent a commission of up to 6%. If you think of it that way, then how can you think of selling your home on your own?
The Flat Fee MLS puts thousands of homes on the market for sale and greatly increases the chances of a quick sale. $2,500+ can easily be saved by listing your home on an MLS service and having a buyer show interest in it and want to come to see it in person.
Let me give you an example:
Let’s say your home is worth $100,000; you placed it on the MLS program and found one potential buyer for $100,000. In a traditional sale, you would have to come up with $50,000 plus your closing costs to sell your home. With a discount MLS program, your house that is priced at $100,000 is listed on the MLS program at $100,000 and allows you to only list it at $100,000 + $2,500 for a total of $2,500 savings, for a total saving of $5,500!
That’s a $5,500 savings that can be applied to another real estate, such as repairs on the home, new appliances, or furniture, to even help you pay more of your closing costs in the process. The true beauty of a flat-fee MLS listing is that you are truly looking to save money. The MLS fee is typically 1% of the sale price of your home. If your home is listed at $100,000, your agent’s fee is approximately 1% of the sale, or $5,000.
Instead of having to come up with this one $5,000 plus fee at closing, the real estate brokerage is offering to lower the price of your home by the same percentage as the agent’s fee.
What ends up happening is that you are able to effectively save yourself thousands of dollars in real estate commissions. You are able to get more for your property, and more of the sale will go to you directly!
Sounds like an easy way to get more cash don’t you think?
I am sure that every homeowner would like to pay NOTHING more than a good agent would charge to list their home and get it sold. However, what most homeowners don’t know is how much of that $100,000 property was already paid out to the agent in the first instance.
For example, let’s say you listed your home for $100,000 with a $1,000 listing fee. The buyer is looking at homes in your neighbourhood that are listed for $100,000 and wonders why you are selling at $100,000. The agent is likely going to tell you to wait because they have buyers looking for properties in your area that match your asking price.
Most agents will also promise you that they are going to buy your home within the next two or three weeks (a very common service provided by discount MLS services), but they are likely already negotiating with a buyer. This means that you will then only get $10,000 for the sale of your home.
That’s $20,000 you would probably need to come up with, or you need to come up with an $8,000 deposit to lock up a buyer. In the current market, this is not easy at all.