Flat fee MLS

[Ed Kahle]

Anyone use flat fee MLS to list wholesale properties? Any suggestions on which one to use?

[Nate Perry]

Hello Ed,

Have you thought about networking with a local REALTOR. You can arrange a strategic agreement to utilize the MLS and get some extra assistance for the same price or less. If you list a property with a REALTOR for a flat fee and get a buyer for your property the REALTOR has an opportunity to get multiple leads and everybody's happy. The more premium professionals may require more than leads and a flat fee, but with a little looking you can definitely find a good balance between cost and value for the service. I think it is wise to utilize the MLS. And if it's wise to use it I would like to think it is wiser to go direct. Direct would be those members with access to MLS at the local Real Estate Board. As an Investor time is of the essence and access to reliable information can be worth the price of admission.

[Matthew B.]

Flat fee listings are a smart way for investors to save money on commission. Every investor I know in my area uses flat fee listings. The ones who don't are licensed themselves. Try different ones until you find one you like. It should only cost a couple hundred bucks, so it's not a huge commitment.

[Account Closed]

I've used flat fee several times for listings (not wholesaling as you asked about). It is a mixed bag. With one deal, the house sold on the first day with the first showing, so I saved almost three grand. I doubt a realtor can beat the price. Flat fee is about 250 bucks. The cheapest any realtor has quoted me is 1.5 percent for their side. So on a 100k house, the fee is 1500 versus 250. Another realtor tried to scare me about "not getting exposure" and "it not being effective". You get on the MLS, trulia, realtor.com, zillow..You get as much exposure as a traditional listing.

In fact,some buyers agents don't realize they are dealing with a FSBO. But there's the problem. Once they do realize it (when they call you to set up the showing and figure out you are not an agent), I think they steer buyers elsewhere. So the last house I sold with flat fee was more problematic. I had about 15-18 showings before I got an offer (unusual for price point, condition, and market). And I almost lost an offer because the flat fee company put a direction in the agent remarks (that I could not see) to submit all offers to them. Their strategy is to let you do all the leg work, then call you and say " an offer came in, we can handle the paperwork for 1200 bucks". Of course, when pressed for details about all this scary paperwork, they did a little dance. I mean, come on, it's a fill in the blank contract. The title company does all the paperwork. he bigger problem though is they never bothered to call me in the first place. If not for a misdialed oversight from the buyer's agent, , I would have lost a full price offer.

My brother also used a flat fee company and had realtors complain to him as well that it took days for calls to get returned, or that they could not get the info to set up showings. So bottom line, you never know how much you are losing, perhaps even an offer, because they drop the ball. But the bigger issue for me is the lack of cooperation from local agents. Yet another angle is that my last house failed to appraise (which was total bunk based on the numbers), but I think it was because the appraiser found out it was FSBO. Everyone assumes that FSBOs are overpriced. I mean everyone. Ask an agent about a FSBO listing, and one of the first things out of their mouth will be, overpriced. So.....my next listing will be with my regular agent. I think it is easier to negotiate through a realtor, buyers agents don't take you seriously or try to push around FSBOs, (one told me I had to go mow the lawn, twice!)

[Scott W.]

I just recently used a flat fee ($250) to flip a house and it went FANTASTIC. It says for the buyer's agent to contact the seller directly. they'd call me as a courtesy (as they already have the code to the home). I also offered 2% to the buyer's agent.

65% of buyers see homes on the internet anyways so they will tell their agent they want to see the property.

This flip was in immaculate condition. I had 2 offers in 9 days (1st buyer backed out but then wanted the house a week later) at full asking price.

If the home is priced right and in good condition, it will sell.

[Sam S.]

@Ed Kahle did you list a wholesale deal on a flat fee service?  If you did how did it go and which one did you use?