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Welcome to Brokerless Flat Fee MLS - Main Menu
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Flat Fee Home Selling by State
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How Flat Fee MLS Works
The Process Explained
Flat fee MLS (a.k.a For sale by owner MLS or limited service MLS) is a term used to describe a practice in the real estate industry in which realtors place pertinent information about a property for sale into the database of the local Multiple Listing Service (MLS) for a set fee or dollar amount as opposed to a commission based on the contract selling price of the property. The seller's home is essentially marketed in cyberspace (i.e. cyberspace home selling) for a specific period of time (or until sold) for this one time flat (or fixed) fee.
 The arrangement between the real estate broker and the property owner ("seller") typically requires that the parties enter into an exclusive-agency listing agreement, a listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner’s stated terms. The owner reserves the right to sell without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker. In return, the seller will be required to pay the listing broker a flat fee for his/her limited services provided. This essentially reduces contractual risks between the seller and the listing broker, since the seller is free to sell (or otherwise transfer title to the real property) to any person procured by the seller (i.e. someone who is not represented by a "Buyer's Broker") without having to pay a brokerage commission or penalty. The net effect is to limit brokerage services provided, thereby giving the seller greater control and flexibility at significantly reduced costs.
In this instance, the flat fee that the seller pays replaces the much higher listing fee, usually 2.5% to 3.5% of the sales price, that is otherwise paid if the seller were using a full service listing broker in his/her local area. As a result, the seller will not pay additional service fees that are typically based on the contract selling price. The seller will, however, be required to pay a cooperating brokerage fee, usually between 1.5 to 3.5 percent, stated as a percentage of the total purchase price. The title agent conducting the closing will be be instructed, pursuant to the purchase and sales agreement (or listing agreement), to disburse any fees due to the cooperating broker.
The listing fee for a “Flat fee MLS” can range anywhere between $99-$699, depending on the area. Real estate brokers have traditionally charged sellers anywhere from 3% to 7% of the contract selling price, which is typically split between two brokers involved in the transaction or two agents/brokers from the same company. MLS Rules require that its members cooperate and offer compensation to other members.
Please note: In all cases, where the property is “listed” in the MLS for a flat fee, the seller must offer compensation to a "Buyer’s Agent”, typically 2% to 3.5% of the selling price. This fee is paid to the cooperating broker (or agent) for producing a bidder or purchaser, when the transaction results in a successful sale and closing of escrow of the property.
Paying a flat fee for an MLS listing means more equity in your pocket! All the advantages associated with having an MLS listing will be available to you at a fraction of the cost. As a result, there will be no additional listing fees owed specifically to the Listing Broker. Typically, those fees run from 2.5% to 3.5% of the selling price, and are normally paid to the Listing Broker at closing. Since lower fees means more equity in your pocket, Brokerless could save you, the seller, thousands of dollars in commissions.
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Exclusive Agency v. Exclusive Right-to-Sell
A contract between a landowner (as principal) and a licensed Real Estate broker (as agent) by which the broker is employed as agent to sell Real Estate on the owner’s terms within a given time, for whose service the landowner agrees to pay a commission.
Generally, two types:
1) Exclusive right-to-sell Listing Agreement: An exclusive right-to-sell listing is the most commonly utilized instrument. It gives the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage or directly. The owner pays both the listing and selling broker fees. The owner cannot sell the property herself without paying a commission, unless an exception is noted in the contract.
2) Exclusive-Agency Listing: A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner’s stated terms, for a commission. The owner reserves the right to sell without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker. Most commonly used with Flat fee MLS listings.
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Multiple Listing Service (MLS)
The MLS (Multiple Listing Service) is a computerized database that enables realtors to display real time real property listing information, so that authorized participants, as well as the public, can view and evaluate listings. The MLS serves as a means by which authorized participants (listing brokers representing sellers) make blanket unilateral offers of cooperation and compensation to other authorized participants (co-operating brokers representing buyers). MLS participants actively show and sell homes that are listed by other participants (member realtors). This process provides the basis upon which the Broker, who is working with the buyer and referred to as the co-operating broker, earns a commission. A cooperating broker's entitlement to compensation is determined by the broker's performance as procuring cause of sale or lease. Approximately, 75% of all properties sold are sold through the MLS.
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Variations of Limited Services
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General Questions Regarding Flat Fee MLS
- How does the BrokerlessMLS plan work?
- The flat fee that you pay replaces the much higher listing fee, usually 2.5% to 3.5% of the sales price, that you otherwise would pay if you were using a full service Listing Broker in your local area. As a result, you will not pay additional fees that are typically based on the contract selling price.You will, however, be required to pay a Cooperating Brokerage fee, usually between 1.5 to 3.5 percent, stated as a percentage of the total purchase price. The title agent conducting your closing will be be instructed, pursuant to your purchase and sales agreement (or listing agreement), to disburse any fees due to the Cooperating Broker.
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- What happens when potential buyers call regarding my property listing?
- The Flat fee MLS business model is geared towards seller control and flexibility. You will be in charge of all showings, buyer inquiries and negotiations. The listing broker can usually assist with paperwork, showings and buyer inquiries for an additional fee. The closing process is the period between contract to closing. During this time, you will schedule and complete all of the prerequisites needed to close the sale of your home. At closing of escrow, you will convey title to your property. In certain circumstances, flat fee MLS brokers offer additional services for a portion of the buy side commission.
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- Why should I sell my home using the business model employed by Brokerless, Inc.?
- Control and flexibility at a fraction of the costs. This will result in less contractual risks between you and the listing broker as well. This is due to the fact that limited service business models entertain the use of exclusive agency listing contracts, as opposed to exclusive right of sale listing agreements. Our affiliates will be available to serve you at all relevant times during normal business hours. At Brokerless, Inc., we believe it's important to team with industry professionals when synergies are created. The consumer benefits by obtaining similar services at substantially reduced rates.
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- How do I get my property listed in my local MLS?
- The process involves a few simple steps. Please be advised that certain flat fee mls companies will not list your property in your local mls. Regardless, your property will be displayed on Realtor.com. You should always refer to the privacy policies of the organization that will handle your listing. Any information that you provide should be kept strictly in accordance with current privacy laws. Please refer to our linking policy. In most regions of the country, the steps are as follows:
1) Create A Flat Fee MLS Listing Account.
Several checks are performed to ensure a healthy setup of your account.
2) Choose A Flat Fee MLS Listing Package.
3) Complete And Submit The Flat Fee MLS Listing, Limited Service Agreement. This must be handled by the real estate professional you are working with. When you are completing the listing agreement, you will need to specify how much you are willing to pay the buyer's agent (otherwise known as a cooperating broker). The cooperating brokers entitlement to this compensation is determined by the brokers performance as procuring cause of sale or lease. The fee usually runs between 1.5 to 3.5% of the total purchase price of your home, and is paid at closing. Remember, if there is no buyers agent, you pay no commission.
4) Make Payment. Please be advised that the steps vary, depending on the broker's internal business polices.
Please Note! Once listed in the MLS, your property becomes available for other realtors to show. You agree to show your property at your convenience.
- Who will be my targeted audience and how many people will get to see my listing?
- Your targeted audience will be individuals searching MLS listings for sale in your local neighborhood. Realtor.com is the largest real estate web site that displays MLS listings. Every month millions of unique visitors search the Realtor.com database of listed properties. Realtor.com sends out numerous feeds to a majority of internet sites that display MLS listings as well.
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- Will I be required to hire an attorney in order to sell my own home?
- There is no legal requirement to hire an attorney. However, many customers will hire a real-estate lawyer to protect their interests. In most regions of the country, a title company (agency) can handle every aspect of a real estate transaction, including the preparation of documentation. Please be advised that a lawyer can act as both your attorney and title agent (i.e. one who issues title insurance policies and conducts closings). When selecting an attorney, choose one that specializes in real estate and be aware of RESPA.
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- Will my personal information remain private?
- We do not use personal information for any reason other than to communicate details to our affiliates regarding services we offer. We will not sell your personal information under any circumstances. For more information on how we will handle personal information, please refer to our privacy policy.
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- How do I find property that is listed for sale on Realtor.com?
- Go to www.Realtor.com. Realtor.com offers the greatest searching capabilities for viewing MLS Listings.
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- Does Brokerless, Inc. own multiple web sites involved in flat-fee-mls?
- Yes we do. Brokerless, Inc. owns www.Brokerlessmls.com, www.Addalisting.net, www.Addalisting.com, www.MLSBrokers.net, and Brokerless.net., www.Brokerlessmls.org, www.Brokerlessmls.net. Chances are, you landed on this site by accessing another site we either own or have an affiliation with.
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- What is the best photo to use?
- We recommend the use of a photo that displays your home's most favorite attributes. Generally speaking, a photo displaying key characteristics will be sufficient for this purpose. Most MLSs will take at least one photo and display it as part of their membership service.
- Can my property be listed on the MLS for longer than my agreement calls for?
- Yes. However, listing agreements must have a definite expiration date. Therefore, additional paperwork will be required to extend the original period contemplated in the agreement. Your broker should be able to assist you with this.
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- Who will be my listing Broker?
- This will depend on where your property is situated. Brokerless, Inc. is in the process of establishing working relationships with real estate brokers throughout the continental U.S.
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- Will anyone want to show my home if I'm only paying, for example, between 1.5% and 3.5% commission?
- Yes. This is the fee the cooperating broker earns for introducing the bidder/buyer. At closing, the closing agent will be instructed to disburse any fees due to the cooperating broker to them. The cooperating broker's entitlement to this fee is based on the procuring cause of the sale or lease.
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- Does Realtor.com display seller information?
- Realtor.com does not display seller information, such as phone numbers and email addresses, on their site. Flat-fee MLS brokers are required to give their own contact information on Realtor.com® and other MLS websites. The listing broker will divert all buyer inquiries to sellers directly.
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- How many photos can I list on the MLS?
- Most MLS's allow up to 6 photos. You will need to confirm this with the real estate professional handling your transaction.
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- Will the buyer's agent assist with paperwork?
- In most cases, yes. Please be advised that a cooperating broker represents the interests of the buyer and not the seller. A number of our affiliates offer transaction coordinating services to assist sellers from contract to closing.
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- How many forms do I need to complete in order to get my property listed on the MLS?
- This will depend on the region of the country your property is located in. These will include both state and federal forms, as well as forms required by the Multiple Listing Service where your property will be listed. The real estate professional handling your transaction will provide these forms to you prior to listing.
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- When will I be charged charged?
- You will be charged a one time fee prior to your property being listed. Additionally, you will be required to pay a fee at closing if you commit to a deal that requires you to pay a buyer's agent, otherwise known as a cooperating broker. When completing the listing agreement, you must indicate how much you are willing to pay the buyer's agent (otherwise known as the cooperating broker).
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- What are the payment methods that I may choose from?
- We encourage that all our customers pay for their services online. Optional forms of payment are available, but this strictly depends on policies and practices the broker that has been designated to your transaction employs.
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- How do I change the status of my listing?
- Customers can change the status of their listing by completing an additional short form that is provided by their realtor. Our affiliates have systems in place to facilitate this.
- Sincerely,
The Support Team at Brokerless, Inc.
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