Signing up for an MLS service in Minneapolis could give your FSBO sale a huge boost, especially if you’re looking to save money on real estate commission costs. By skipping the fees of a listing agent, which typically range from 2.5% to 3% of the home’s sale price, sellers pay a predetermined flat fee instead. However, the buyer’s agent’s commission remains the seller’s responsibility, in addition to any other service costs incurred during the sale.

This method is especially advantageous for those with a desirable property in a thriving market, who are willing to take an active role in their home sale, or who prefer not to engage with a licensed agent. A flat fee MLS listing not only places your home on the MLS but also demands a hands-on approach to selling, from pricing to closing.

When selling your home FSBO sale, here are just some of the things you’ll have to take care of on your own:

1. Utilizing market data to determine an optimal selling price.

2. Crafting a compelling listing description.

3. Taking professional photographs and executing effective marketing strategies.

4. Making the required disclosures, and managing showings and open houses.

5. Reviewing offers, negotiating terms, and understanding your contract.

6. Calculating closing costs and net proceeds, navigating appraisal or inspection issues, handling transfer taxes, and gathering necessary documentation.

Pros of using a flat fee MLS listing service

• Cost savings on commission: Eliminates the listing agent’s commission, which typically ranges from 2.5% to 3% of the home’s sale price.
• Self-representation: Allows you to represent yourself in the sale of your home.
• Control over the sale: Offers complete control over all aspects of the sale process, from listing to closing.
• Upfront costs: Provides transparency with known, upfront costs for the listing service.
• MLS and online exposure: Ensures your home is listed on the MLS and popular third-party websites, widening exposure to potential buyers and their agents.

Cons of using a flat fee MLS listing service

• Buyer’s agent commission: You are still required to offer a commission to the buyer’s agent, which can impact overall savings.
• Self-management of the sale process: Places the responsibility on you to handle any issues that may arise during the sale, potentially delaying or jeopardizing the deal.
• Lack of guidance: Navigating the sale without the expertise of a local professional can be challenging, especially for those unfamiliar with real estate transactions.
• Potential for legal risks: The lack of professional guidance increases the risk of liability claims and other legal challenges.
• Possibly lower sale price: Homes sold without a traditional real estate professional often sell for less, potentially offsetting savings from avoided commissions.

How do I list my home with a flat fee MLS service?

Step 1: Research the service
Begin by thoroughly researching your chosen flat fee MLS service, examining their packages, rates, and customer feedback. Consult Google reviews and check the company’s standing on the Better Business Bureau. Confirm the extent of your listing’s details, the number of photos allowed, the availability of forms, and any costs for additional services.

Step 2: Register and choose your package
Register on the service provider’s website, select the most suitable package for your needs, and pay the fee upfront.

Step 3: Submit your property details
Enter detailed information about your property and upload photos. If available, complete the disclosure form provided by the service.

Step 4: Sign the listing agreement
Carefully read and sign the listing agreement. Ensure that the agreement permits cancellation without penalties and does not require you to pay a listing commission.

Step 5: Check your live listing
After submitting your listing, the service will publish it on the local MLS and likely on major real estate websites like Zillow, Trulia, and Realtor.com. Since it may take a few days to appear, regularly check these sites to verify your listing is accurately and completely represented.

Are flat fee MLS listings effective in Minneapolis?

Yes, flat fee MLS listings can be highly effective. In today’s digital age, nearly all homebuyers start their search online, where most platforms source their listings from local MLS databases.

This allows the latest homes on the market to be readily accessible. Moreover, buyers’ agents frequently use MLS data to find properties that meet their clients’ criteria, making an MLS listing one of the most efficient ways to market your home to potential buyers.

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Alternatives to flat fee MLS services in Minneapolis:

If a flat fee MLS service doesn’t seem like the right fit for your home sale, you have other options:

Option 1: Flat fee agent
Hiring a flat fee real estate agent might suit homeowners seeking more control with some professional guidance. These agents charge a flat rate for listing and selling your home, typically between $3,000 to $5,000, with possible extra fees for additional services.

Option 2: Discount brokers
Discount real estate brokers, offering services at a lower commission than traditional agents, provide a middle ground between flat fee MLS services and full-commission agents. While costs exceed flat fee services, they offer basic support and services at a reduced rate.

Option 3: Full-service, experienced real estate agent
Consider a local real estate agent who deeply understands Minneapolis’s market trends and connections for comprehensive service. These agents deliver full services, leveraging their experience to sell your home faster and at a better price despite higher commission fees. Explore the pros and cons of low-commission brokers to make an informed decision.

Will I save money with a flat fee MLS listing service?

Utilizing a flat fee MLS listing service will save you money on commission fees. However, according to research by the National Association of Realtors, FSBO homes tend to sell for about 23% less than those sold by an agent.

For example, the median selling price for FSBO homes was just over $300,000, compared to just over $400,000 for homes sold through an agent. While a flat fee MLS service can be cost-effective, selling FSBO might lead to less overall profit.

If selling your home quickly is your top priority, you might want to consider We Buy Houses companies or an iBuyer. These entities can purchase your home quickly, often within days, regardless of its condition. While they typically offer less than the market value, they provide a rapid solution when time is of the essence.

You can also consider HomeLight’s Simple Sale platform, which can speed up the selling process by making a direct offer or connecting you with a local agent for more options.

What else should I know about selling a house in Minneapolis?

Selling your house in Minneapolis via a flat fee MLS listing service requires adherence to local disclosure laws. While using these services simplifies certain aspects of the selling process, the complexity of legal contracts and disclosure requirements still looms large.

Because of this, a real estate attorney is a wise move for FSBO sellers. You will be on the hook for any legal complications that arise from selling your home, and without the help of a professional, you might find yourself owing more money than you expected.

Key things to remember:

• Flat fee MLS services require payment upfront, which means you’ll pay the fee whether or not your home sells. This contrasts with traditional real estate agents, who only get paid if the sale goes through.
• Some flat-fee MLS services may frequently change their names, making assessing their track record or success rate challenging.
• Listings through flat fee services often include the seller’s contact information, placing the onus on the seller to manage much of the communication with potential buyers.
• Unlike with a traditional real estate agent, there might not be a specific person assigned to help you navigate the listing process, which can leave sellers without the guidance they may need.
• While you’re locked into a fixed rate with flat fee services, the commission fees with traditional agents are often negotiable, offering a potential area for savings.

Ready to sell your Minneapolis home?

Selling your Minneapolis home involves a complex mix of responsibilities and decisions. While opting for a traditional real estate agent provides you with a knowledgeable ally dedicated to marketing and selling your property, choosing the For Sale By Owner (FSBO) route demands that you take on many tasks usually handled by an agent. This approach can be particularly challenging for those juggling full-time jobs or unfamiliar with the nuances of the real estate market.

A flat fee MLS listing service offers a middle ground, providing different levels of support based on the chosen package, potentially easing some of the burdens of FSBO selling. However, reducing costs through a flat fee service might not always lead to overall savings.

Sellers are still responsible for the buyer’s agent commission and the service fees and could ultimately sell their home for less than they might with a traditional agent’s expertise.

If you’re considering selling your home in Minneapolis and need guidance, HomeLight can connect you with a local agent to navigate the sale process efficiently, leveraging their market knowledge and expertise.

Header Image Source: (Tom Conway/ Unsplash)