What is the difference between FSBO and a Flat Fee Listing?​

What is the difference between FSBO and a Flat Fee Listing?​


FSBO (For Sale By Owner)

Flat Fee Listing 

FSBO refers to homeowners who sell their property without the assistance of a real estate agent.

Flat fee MLS is a service where a seller pays a fixed fee to have their property listed on the Multiple Listing Service (MLS), typically used by real estate agents to find properties for their buyers.

Sellers have complete control over the entire selling process, including setting the price, marketing, showing the property, negotiating with buyers, and handling paperwork.

Sellers retain control over the selling process but benefit from increased exposure through the MLS. They handle most aspects of the sale but may get some support from the listing service.

Sellers save on agent commissions, typically 5-6% of the sale price, but may incur costs for marketing, legal advice, and other services.

Sellers pay a flat fee upfront for the MLS listing, which is usually much lower than traditional agent commissions. However, they might still offer a buyer’s agent commission (typically 2-3%).

Sellers must handle all marketing efforts on their own, which might include listing on websites, social media, and physical signage.

The property gets listed on the MLS, providing significant exposure to potential buyers and agents. This can lead to a quicker sale compared to FSBO due to the broader reach.



Summary

  • FSBO: Complete independence and control, potential cost savings, but requires more effort in marketing and managing the sale.
  • Flat Fee MLS: Offers the exposure benefits of the MLS for a fixed fee, while maintaining control over the sale process and potentially reducing overall costs compared to full-service agent commissions.

Both methods are viable for different types of sellers depending on their comfort level with the sales process and their desire for control versus exposure.


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