Do Flat Fee MLS Listings add Value or Just Cost?
How many hours do you work each year to make $10,000? Flat fee MLS companies charge anywhere from a couple hundred dollars to 1.5% of your sale price to list your home on the MLS. But this is just the upfront fee. The total cost of using the outdated MLS system is MUCH higher.
Most sellers don't understand that the MLS requires them to sign a "cooperating broker agreement" committing the seller to pay the commission of a buyer agent. You heard that correctly, by listing on the MLS, home sellers are agreeing to add a buyer agent middleman into the transaction and then pay that agent literally thousands of dollars to negotiate against their own best interests! Flat fee MLS companies claim that you can work directly with buyers and avoid paying buyer agent commissions, but the structure of the MLS system makes this nearly impossible. Statistically, it almost never occurs.
Nearly all home sellers who list on the MLS pay the hefty buyer agent commission that adds 2.5-3% to the fees of selling a home. On a $400K home, that's an additional $10,000 to $12,000 in commissions paid by you, the seller.
In today's market, homes are selling in a matter of days, not weeks or months. Doesn't it make sense to at least attempt to sell without the MLS before adding over $10,000 in unnecessary commissions?