For Sale By Owner How 2 - MLS MULTIPLE LISTING SERVICE

CHART SHOWING DISBURSEMENT OF COMMISSION MONIES

As you can see in the above illustration,

If you decide to go with the MLS Service based on a house priced at $200,000 with a 6% commission ($12,000) if you accepted a contract brought by an agent you would still keep $6,000 paying $6,000 to the selling agent bringing you a contract. You are not obligated to accept any contracts brought by agents it is your option.

Now let’s look at your for sale by owner without listing on MLS. As the owner selling their house themselves you are acting in the same capacity as the listing agent, so your part of the commission is the 3% or $6,000. If you sell the house yourself you would keep the other 3% or $6,000 for a total to you of $12,000.

But let’s say that the market is really tight and you decided to go with the MLS service and list your house opening it up to all Real Estate agents and buyers all over the country. In this case you would then be offering as in the above example 3% sales commission to the selling agent which would be $6000, but as “the listing agent in the transaction” you still would retain the other 3% $6000. Now in the event you are the one selling the house yourself you would not owe anything because you paid the flat fee so you would keep the whole 6% $12,000 commission and owe nothing more.

The positive side of listing on the MLS is that it opens two avenues for you. Not only is your house well represented on the internet but you now have the possibility of agents bringing you contracts for you to accept or decline. This may result in an earlier sale of the house saving you even more money in the long run especially if you are waiting to close on your new house and have a contingency on your purchase contract or if you have already moved and are paying 2 mortgages.

The most obvious reason to sell your house yourself is to save the commission. However, sometimes saving that 2.5-3% sales commission should not be the only consideration. You always need to be looking at the bottom line. What kind of market are you in? Are you under a time crunch to sell your house? Is it going to cost you more than the flat fee and the sales commission if it takes longer to sell the house or do you have unlimited time. Because you pay a flat fee for the MLS listing, you can decide if you should or should not accept a contract from an agent for a buyer so you maintain complete control over if you pay a commission.

The Flat fee MLS is a great way to market your home on the internet. It is searched by both real estate agents and buyers from all over the country, even the world. You can list your house on the MLS service for a fee ranging from $399 to $599 depending on where you house is.

CHECK OUT

BUY SELF FOR SALE BY OWNER FLAT FEE MLS SERVICE
this is a site which offers MLS listing services for your state and it has a rating from the Better Business Bureau BBB RATING

Frequently asked questions about Flat Fee MLS This is a link to the Federal Housing and Urban Development Site - Great resource you should add it to your favorites

When you list your house on the MLS you basically agree to co-broke with a real estate Buyer's agent bringing you a buyer for your house. This means that if a real estate agent brings you a contract and you accept it (this is important you do not have to accept it) then you will pay the agreed upon percentage commission for the sale only. Because of Licensing laws You will also be linked with a Real Estate Broker to act for you in the sale in the event of a sale through a real estate agent, this is explained in the terms agreement, be sure to read this before you sign up.

MLS: Is By Far, one of the most effective tools for Home Sellers.

            See Comparison

The Multiple Listing Service (MLS or "Multi List") is a private local network of homes for sale that nearly all Realtors use to find homes for their buyers. Home sellers were previously unable to present their home in an MLS Listing unless they paid 6-7% of the home's selling price to a Realtor. Today, home sellers, including "for sale by owner" sellers, have access to the Realtors Multiple Listing Service through this flat fee Multi-List Program which enables your home to be listed in the MLS -- for access to nearly all Realtors who represent potential buyers looking to buy a home in your neighborhood.

80% of buyers use a Realtor to find a home. This group of buyers includes a high percentage of relocating buyers and statistically the buyers with the best financial qualifications for buying a home according to a National Association of Realtors® study. Because many real estate agents use the MLS as their only tool for finding a home for their buyers, many checking the MLS for new listings many times per day, MLS is 3 times more effective in making a connection between home owner and buyer than any other home selling tool.

Below is a sample of the property input sheet. Even if you do not put your house on the MLS you should fill out this sheet for information purposes. It will have everything you need for your ads, your flyers, and the House for sale input when you put your house on an internet site. This sheet is an excellent information tool, make a copy to keep by the phone, because it lists everything about your house that a buyer might ask.