Flat Fee MLS...Broker Scam or Clever Business Practice?

By
Real Estate Agent with HouseKey Real Estate LLC 2002022867

Anybody in the country with $100.00 and a real estate licence who is a member of a Board of Realtors "Somewhere" in the country can get a Flat fee website and sell you the Sun Moon and the Stars. Its NOT regulated by anyone and I am not even sure the Real Estate Commission at least in my State ( Missouri )  has a grip on these brokers as most are NOT holding a Local  licence. Those that do not will take your money and put you with a broker who they choose who will take a piece of your fee in exchange for some level of service getting you on the MLS.

Many will "Guaranty your Money Back" as a tool to get you to do business with them but the real motive is for you to possible fail in your Flat Fee MLS attempt.

Let me explain how this works from my side of the fence, you pay from $99.00 & up to as much as $895.00 to get your Flat fee MLS access pass to get your home on the MLS. Many times nobody shows your house or  agents pick it apart a little more with buyers than the last one because they don't know your broker      ( Not local ) and no responsible experienced agent is going to subject their buyer to dealing with an outside out of state broker who does not want to use our local approved forms or understands our contracts, local real estate customs of who pays for what or whatever the reason; but you get the point.

So now the FSBO seller waisted lots of time and decide to give up and in order to get your money back you need to go through the Flat Fee MLS broker you signed up with so they can have you use a local full service broker they help you pick and you will need to pay the full fee ( normally 6-7%) paid at closing.

So you list your $200,000 home that sells with the full service broker and the listing broker pays a referral fee back to your Flat Fee MLS broker ( Clever ) upon sale of between 25-40% of the listing side commission which is between $1500.00 -$2400!  so they pay you back the Flat Fee MLS fee you paid in the beginning and earn MORE for the full service referral..........Can you see how the Flat Fee MLS Broker stands to earn a lot more money if you fail in Flat Fee MLS? Can you see this business becoming very profitable? 

I have decided to try Flat Fee MLS ( See Here ) with a twist, If a seller is willing to pay me for my time in advance I have no issues doing the work. I am going to see how this works but in the end if their house does not sell maybe they will convert over to my full service program. Full Service $1995.00

What is your experience or thoughts on Flat Fee MLS?

 

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Topic:
Real Estate Best Practices
Location:
Missouri
Tags:
for sale by owner
flat fee mls
fsbo

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Rainer
20,600
Riva Gambash
Addisleigh Park, NY

The MLS was intended to brokers and real estate agents not to the consumer.I think that nowadays with the internet era sellers might want to have more exposure to consumers than just to real estate agents.In general I think that the MLS system is not in favor of the consumer. With its rules and regulations when it comes to list a property, it is very limited with real transparent information that the consumer of nowadays demands. The MLS is an old system and we should get rid of it. 

May 26, 2016 01:34 PM #1
Rainer
3,463
Bryan Bowles
Transactly - O'Fallon, MO
Real estate entrepreneur

I kind of agree with Riva's comments about the relavancy being reduced, but it still serves the purpose of being an efficient means of brokerage cooperation.  Flat fee MLS listings are helpful, because it's an efficient way for the do-it-yourselfer to market their home (and a buyer agent commission) to all agents in an area, and syndicate the listing to litereally hundreds of websites.  The only way to get a listing in Realtor.com is via the MLS.

Feb 12, 2019 01:03 PM #2
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Rainmaker
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David Sekunda

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