Fresno area homeowners do have several options when it comes to selling their homes: they can list their home with a local real estate agent, they can attempt to sell the home by owner, or they can sell through a combination of the two: a flat fee MLS listing. To do this, the seller would need to locate a member of the Fresno Association of Realtors MLS system that would list the property for a small upfront fee rather than charging a listing commission on the back end. The seller would agree in writing to compensate a buyer's agent if their buyer-client ended up purchasing the home. In doing this, virtually any agent in Fresno, Clovis, Kingsburg, Prather or surrounding areas could potentially sell the home.
It is like hiring a huge sales force at a discounted cost.
With around one million residents, Fresno County's real estate market is certainly dynamic with homes of many price points from basic and entry-level homes to high-end homes or agricultural properties with acreage. Flat fee MLS listings can benefit virtually any property owner because the savings increases proportionately to the price. For instance, a seller with a one hundred thousand dollar home might save two to three thousand dollars compared to a different broker by utilizing a flat fee company. A seller with a two million dollar home might save fifty or sixty thousand dollars. With today's real estate prices, it is easy to see the popularity of flat fee MLS throughout the State of California including Fresno.
It is important to utilize state-promulgated forms and disclosures when selling property in California. Prior to listing, any seller needs to make sure their broker will either provide the correct forms, or that the seller can locate the forms. They also want to make sure that if they are using either a traditional agent or a flat fee listing service that the person they are dealing with is in fact licensed in the State of California and a member of the correct MLS system. Listing a Fresno area property in the Westside Los Angeles system, the Orange County SoCal MLS system, or the Sacramento Metrolist system, for instance, would not be very beneficial for a Fresno County home seller. Fresno area real estate agents use the Fresno MLS to locate properties. Fresno area buyers performing Internet searches also use websites that pull a limited view feed from the actual Fresno MLS. Sellers need to be very mindful of this and not waste time by listing in an out-of-area system.
Fresno real estate promises to be interesting the next several years. The county's agricultural base remains strong; ethanol companies have decided to locate some operations in the county and food processing companies continue to operate in the Fresno area. Government employers like the IRS and Caltrans remain a relatively large source of jobs. With a slowdown in new home construction and decline in real estate related jobs, Fresno will be in a transitional period and homeowners will definitely be more mindful of the need to cut costs in real estate transactions.
When you are ready to sell real estate you have options, I know many of you think you have to list with a broker and pay outrageous commissions. That is not true. You can sell by owner or you can sell by owner and take advantage of Multiple listing services as well.
Let me compare the two services for you, then you decide.
What do brokers do for 6%?
They do a number of services. The most common of these is:
1. List your property on the local Multiple Listing Service
2. Review and/or write your purchase agreement.
3. Act as a transaction coordinator who follows your contract through to closing.
4. They usually set showings.
5. They will give you a sign with their number on it
6. They usually provide a lockbox
7. Most will prepare flyers, with their contact information on it.
On a $200,000 dollar property you commission would be $12,000 or more.
What do flat fee brokers do?
1. List your property on the local Multiple Listing Service for a Flat Fee, usually around $200.00 Some services charge considerably more than that. Do some research to find the best service and the best price.
2. Review and/or write your purchase agreement. This is a separate fee, usually around $279.00.
3. Act as a transaction coordinator who follows your contract through to closing. A separate fee, usually around $379.00
4. You set the showings around what is convenient for you and the buyer.
5. You have your own sign with your phone number as contact.
6.You have a key box, and you control who has access to it.
7. You create your own flyers with your contact number or you can get free flyers from a local title company or a lender.
The great thing about the flat fee service is you can pick and choose the services you want and pay only for those you need.
What will you do with all the money you save?
If you bought all the separate services, your cost would be less than $1,000.
If sold by a MLS broker and you paid a coop fee, you would still save between $5,000 and $6,000 thousands dollars.
Since you can still sell by owner, if you were able to find your own buyer, you would pay no coop fee. This would not be an option with the 6% listing. You could save more than $11,000 dollars. Not bad.
Benefits of using Flat Fee MLS:
1. You save time - properties usually sell faster
2. You save money - properties usually sell for top dollar
3. You maintain control - Brokers have a lot of control with 6% listings
4. You can sell by owner and owe no commission - No so with full service listings.
5. You can cancel at any time - May or may not be true with full service listings
6. You get far greater exposure to qualified buyers
7. You get thousands of Brokers with qualified buyers to help sell your house
8. You most likely will get listed on Realtor.com as well as the local MLS
What to look for in your Flat Fee broker
All flat fee brokerages are not alike and there are many scams. Some call their service MLS when in fact they are not even members of the MLS. They may not be licensed real estate agents. They take your money and put you on their web site but not on the Realtor's MLS.
So do some investigating. Find out:
1. Do the have experience with for sale by owners?
2. Are they members of your local MLS?
3. Are they licensed Brokers in your state?
4. Do they maintain an office locally? And do they have a local phone and address?
5. Are they easily accessible by phone, fax, email and mail?
6. Avoid large franchise companies and Multilevel Marketing scams
Things you need to do as a FSBO:
1. Detach from the property.
2. Clean house and garage.
3. Learn how to stage the property
4. Research other properties in your neighborhood so you can price it right.
5. Put away all valuables while you're on the market
6. Get flyers for your buyers
Summary
So why wouldn't you do Flat Fee MLS instead of full service 6% commission?
There are lots of reasons people choose to go with a higher commission and I respect their choice.
I think you'd be wise to look into Flat Fee MLS services in your area first and then compare the two and make an informed decision.
Both Donald Plunkett & Wee Dilts are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Donald Plunkett has sinced written about articles on various topics from Real Estate, Business and Finance and Real Estate. Donald Plunkett offers . His company, Congress Realty, is a multi-state flat fee brokerage.. Donald Plunkett's top article generates over 6600 views. to your Favourites.
Wee Dilts has sinced written about articles on various topics from Finances, self improvement and motivation and Marketing. Wee Dilts created the original for sale by owner flat fee MLS program, authored the best selling "How to Sell Real Estate by Owner" book, and has assisted FSBOS since 1983. Colorado For Sale by Owners can register for MLS, purchase her book, or download F. Wee Dilts's top article generates over 22200 views. to your Favourites.