When it comes time to sell a home, an increasing number of homeowners are considering “For Sale by Owner”, or FSBO. In some cases, the homeowner wants to sell their property to a family member or friend and doesn't require the services of a real estate agent.
However, many people sell their homes independently, cutting out middlemen, such as real estate agents, to avoid having to pay a commission. At first glance, FSBO seems like it would be a no-brainer. But oftentimes, it makes more sense to use a flat fee multiple listing service (MLS), especially when you consider that without taking this step, you'll be responsible for all aspects of selling your home, including marketing and advertising, staging and showings, as well as the legal headaches involved with of closing the sale and transferring property to the new owner. Of course, selling a home also takes up a lot of time, time possibly better spent working or enjoying activities with family or friends.
What is an MLS?
A multiple listing service or MLS is a database curated by a collaboration of real estate brokers and provides information about properties for sale. The database allows brokers to see certain information that aids in connecting buyers and sellers. The arrangement facilitates cooperation and shared commissions.
The participating real estate agents pay a membership fee to the MLS, which provides them access to the electronic database. Some agents offer a physical listing of the homes for sale and an online listing.
Individual multiple listing services may establish their own procedures, but every MLS must follow rules and policies set by the NAR.
Selling Your Home FSBO
If you choose to sell your home independently, it’s important to note that you must possess a real estate license before you can list your property through MLS. While it's still possible to sell a home FSBO, you will face a substantial competitive disadvantage if you don't list your home with MLS. If your property is in Texas and you’re considering selling it on your own, you'll need to follow these steps:
1. Prepare your home for sale. You will want to thoroughly clean the house and property and make sure that each room displays a definite purpose. Put away personal items such as photos and trophies. Consider hiring a professional home staging service.
2. Create a listing, including a thorough and accurate description of the property and up to 25 photos. According to the National Association of Realtors (NAR), if a potential buyer doesn't find your photos interesting, they will skip right over it, so bad photos can hurt your chances of drawing crowds to your showing and securing a sale. Professional photos will show your property to its best advantage and are well worth the cost.
3. Market your home using a brokerage company like HomeZu. Such services provide multiple MLS listings for a flat fee.
4. Many FSBO property owners use social media sites as a marketing tool. When using platforms such as Facebook, Instagram, Nextdoor, or others, proceed with caution. Scammers often look for opportunities on these sites.
How an MLS Works
Though the housing market is competitive, shrewd real estate agents figured out, back in the 1800’s, that it made sense to collaborate and share information. This mutually beneficial agreement evolved into the modern MLS.
Today, the concept of the MLS remains generic without a governing body. The lack of regulation means the phrase “multiple listing service” or “MLS” cannot be branding or trademarked.
Although the absence of branding allows for national distribution of databases, typically, local agents work together to create a more streamlined or regionally focused database for MLS listings.
Why You Need an MLS in 2023
Whether selling your property on your own or with an agent, listing your home on an MLS allows prospective buyers to find your listing, no matter the real estate company or realtor they employ. Though physical real estate catalogs are still in use, they can't possibly keep up with the efficiency of an electronic database. Some additional benefits of listing on an MLS include:
• Since sellers pay a one-time, flat fee to use the MLS listing service, it gives both small and large brokerages a level playing field and a fair shot at competing with one another.
• Potential buyers benefit by having access to a much larger and constantly evolving pool of prospects from which to choose without needing to search multiple websites.
• Commissions are shared between the real estate agent and MLS, allowing them to pursue a common goal and create an atmosphere where both buyers and sellers will benefit.
Accessing an MLS
To place your FSBO home on a multiple listing service, typically, you need a real estate license. But if you're selling your home under FSBO, you most likely don't want to spend the time and money investing in taking real estate classes and getting your license. And, as mentioned previously, not using an MLS puts you competitively at a disadvantage. If you don't use a real estate agent or MLS broker, the bulk of the costs and responsibilities will fall on your shoulders. as the seller.
By using an MLS Listing Services Company, you can forgo the need for a real estate agent and still get access to an MLS listing at a fraction of the cost. For a flat fee of $399, your property will list for six months with agencies such as Realtor.com, Redfin, Zillow, Trulia, and other syndicated MLS partner websites. In addition to the local MLS listing, HomeZu also handles details such as purchase forms, disclosures, and flyer handouts and allows you to upload up to 25 photographs. And if your home sells quickly, you can release the listing anytime.
