FSBO listings on MLS

[Judy Schutz]

I'm tired of flat-fee brokers posting FSBOs on the MLS. I spend hours and money yearly on subscriptions, CE courses and marketing for the privilege of using the MLS. We're not even permitted to share our password and now, for $200, a FSBO can take advantage. I'm losing listings. Why should the pay me a commission for the ability to list when they can list for significantly less?

[Christina Carey]

@Judy Schutz it seems you created a practically anonymous BP profile just for this post, in a forum where there also happens to be the highest ratio of people who will utilize the service you not only loathe, but also do not fully understand.

As a broker who does both full-service and flat fee, I'll offer my two cents to help you understand the difference.

Maybe your MLS is different, but in Ohio, the seller is allowed to waive some fiduciary duties, but not all, for what is known as a limited service listing. The seller's contact information is not permitted in the public remarks of the listing, therefore the listing agent still gets calls from prospective buyers who find the listing in all the usual places, the same as they would any other listing.

Limited service listings are not FSBO listings, as there has to be an offer of compensation to be in the MLS. With a true FSBO, there is no guarantee of how much the seller will pay for bringing a buyer - if they'll pay anything at all. The seller is obligated to pay a commission if an agent brings a buyer, based upon their Exclusive Agency Agreement with the listing broker. In no way does that undermine the brokers and agents who pay for access to the system.

Just because the traditional model is the way you've always done it, doesn't mean that's the way it should always be done. The MLS is merely a tool (not a "privilege"). I can use that tool however I see fit, so long as I comply with the MLS rules. Not everyone wants or needs their hand held to sell a house, and if they're willing to do all the work to get it sold, then they should keep the portion of the commission that they would otherwise have paid to an agent.

To make it a little clearer for you: the seller is paying money to an MLS member broker in order to advertise their property to other agents, who they will gladly pay if they bring a buyer to the table. They're simply paying less on the listing side, in exchange for less service. 

The other comments hit the nail on the head: The listings you erroneously believe you've "lost" were never your clients to begin with. People who want to pay for more service will do so, and those who want less, pay less. It really is that simple. It's up to you to show sellers the difference in the value they are receiving for their money, and if you can't do that, then you should probably rethink your business model. I believe it was Charles Darwin who said something like, "adapt or die."

I'm sorry if you find any "hostility" in my comments, but you sort of set the tone in your original post. You're really in the wrong forum if you're looking for people to commiserate with you.