Recently we ran into a company that offers to list on the MLS for a flat fee of $35.
What does this really mean?
Nobody can list on the MLS if they are not a licensed realtor, and a paying member of a real estate board.
In order to get to list in the MLS, a seller must sign with a broker a listing agreement, that is the industry's wording for a binding legal contract
Now, in Florida there are four types of listing agreements:
Allows a seller to use more than one broker, whoever provides the buyer gets the commission, if seller provides a buyer no commission is paid.
This is basically a free-for-all, and it is unlikely that any broker would invest in marketing such a property.
Only one broker is allowed to work on the property.
However, if the seller finds a buyer no commission is owed.
Likewise, broker is not fully protected here and exposed to lengthy lawsuits to recover his dues.
In this type of agreement, the listing broker gets to keep whatever he can manage to obtain above a selling price agreed to by the seller.
This is not effective for sellers, because the fair market value is calculated taking into account the 6% real estate commission.
Therefore, there is a risk that the property will be over-valued and not sell, because it will be competing with better properties listed in a similar price range
Exclusive right to sell
Lastly, this is the most common type of listing agreement and the only one that we would accept.
Here the listing broker is entitled to his share of the commission no matter who sells the property.
This is the only type that effectively protects the listing broker's investment.
We really don't know what type of listing the seller must sign with the brokerage in question, probably one of the first three.
But we do know that we can offer a much better deal:
How about listing in the MLS, all the high-power listing websites, an international realtor network, and getting a top-level domain chock full of information about your property for $0.00?
That is what you get when listing with us.
Please visit our demo site to learn more.