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FSBO's listing on MLS, Standard of Practice?

By Ken Nimmo

Real Estate Agent with National Real Estate of Prescott

March 21, 2007 03:33 AM

We as Realtor's have to get licensed, have a minimum standards of practice, continued education, pay for dues and so forth. In the Standards of practice we are to give advice on the listing/purchase transaction and help the process to it's end. So my question here is how can a FSBO list there home on the MLS for a fee. Is the listing company following a minimum standards of practice by putting a sign in the yard and entering the listing on the MLS.

Where is our NAR standards of practice there. Does this company or companies have the best interest of the clients. Why would the company care if the home sold or not. They get a fee just for putting the FSBO on the MLS.

What about the forms, escrow process, advising on the buyer inspection process, the loan process, helping to understand how the buyer is qualified to purchase. What liabilities are there during an open house, how to even stage and advertise an open house.

To me this doesn't hit our standards of practice as a whole.

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Roger Stensland

Keller Williams Realty Puget Sound - Maple Valley, WA

Let's Move!

The MLS is a business. I don't know what fees they charge the discount brokers. I think that they are bad for business and our reputation, but the MLS, besides liking the fees they can charge these brokers, probably fears a discrimination lawsuit if they refuse their business. My personal opinion is that they shouldn't be allowed to participate in the MLS.

Mar 21, 2007 03:40 AM

Dave Cheatham

INC Financial - Bartlett, IL

very interesting. i do not agree with everything you say. Remember that 85% of all FSBO's do not sell . They do not sell for many reasons and I try to help them in some of those when i talk to FSBO's

The truth is that FSBO's in my opinion help Realtors. The FSBO see how hard it is to do the job and need people to help.

Now for listing on the MLS. In IL this is an issue I know that I have had to deal with. I think it is a good thing in some ways. I do think whoever lists the home on the MLS has some other work they need to do. In part I think it is a scam. I do not like the menu approach. He is what I have, what do you want and I will add that to the cost of my service.

I like it on th MLS because it helps at times get a better idea of the true market out there. Now I have sold my home FSBO. I never put it on the MLS and would not ever do that.

As a person that works with FSBO's. I can tell you I hear bad things from them abut many Realtors telling them that they can not do it and they are in bad shape. I know a Realtor that goes into FSBO's and helps them try to sell it on their own. Now he does not add it to the MLS. God for him. He gets the FSBO's listings because he tries to really help them up front.

Just my thoughts. Sorry it was so long.

Mar 21, 2007 04:43 AM

Ken Nimmo

National Real Estate of Prescott - Prescott, AZ

Dave,

Don't get me wrong I like FSBO's to. I work them adamantly. My problem is having them on the MLS.

Mar 21, 2007 04:51 AM

Fred Pickard

Fred Pickard Innovations Realty Inc - Hershey, PA

Hershey, PA

Ken,

My biggest issue with Flat fee companies is not that they are Realtor and MLS members, it's the way they misuse the MLS systems. Membership in the MLS includes an agreement to cooperate with other members and to compensate members for selling the house.

In many areas, the flat fee firms place the listing in the MLS with a co-op of $1, so they are offering compensation but really are not. That leaves the buyer's agent having to negotiate a reasonable commission from a seller who already has shown that they are cheapskates.

The FFF companies follow the wording of the rules, just not the spirit of the rules.

Mar 21, 2007 07:39 AM

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Ken Nimmo

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