What Is the Difference and Which Is Better for Selling Your Home?
Selling a home For Sale By Owner (FSBO) can save money because you don’t hire a listing broker. A Flat-Fee MLS listing gives you another option: you hire a licensed real estate broker to put your property on the MLS for a predetermined fee, while you may handle some or much of the selling process yourself.
For many homeowners, the choice comes down to one question:
How much work do I want to do myself, and how much professional assistance do I want?
What Does FSBO Mean?
FSBO stands for “For Sale By Owner.”
With a traditional FSBO sale, the homeowner sells the property without hiring a listing real estate broker.
The seller generally handles:
- Setting the asking price
- Taking photographs
- Marketing the property
- Advertising
- Answering buyer inquiries
- Scheduling showings
- Showing the property
- Reviewing offers
- Negotiating
- Coordinating inspections
- Working with the buyer’s agent
- Working with the title company or closing attorney
- Managing the transaction through closing
The seller may save the cost of a listing broker, but assumes substantially more responsibility.
What Is Flat-Fee MLS?
With a Flat-Fee MLS listing, the seller hires a licensed real estate broker for an agreed-upon fixed fee.
The broker places the property in the applicable Multiple Listing Service (MLS) according to the terms of the listing agreement.
The exact services depend on the package.
A basic Flat-Fee MLS service might provide:
- MLS listing
- Listing photographs
- Property description
- Seller-provided information
- MLS exposure
- Syndication to participating websites
- Limited listing changes
A more comprehensive Flat-Fee MLS package can include additional brokerage assistance.
The important point is that “Flat-Fee MLS” does not mean every company provides the same service.
FSBO vs. Flat-Fee MLS
| FSBO | Flat-Fee MLS | |
|---|---|---|
| Listing broker | No | Yes |
| MLS listing | Usually no, unless another arrangement is made | Yes |
| Fixed listing fee | None | Yes |
| Seller controls price | Yes | Yes |
| Seller handles showings | Usually | Often |
| Seller handles buyer inquiries | Usually | Depends on plan |
| Professional MLS exposure | Usually no | Yes |
| Negotiation assistance | Usually none | Depends on plan |
| Transaction assistance | Seller responsibility | Depends on plan |
| Seller involvement | Very high | Moderate to high |
| Potential savings | Highest | High |
| Professional brokerage involvement | No | Yes |
The Biggest Difference: MLS Exposure
This is probably the most important distinction.
A homeowner selling FSBO may advertise the property through:
- Yard signs
- Social media
- Craigslist or similar services
- Personal networks
- FSBO websites
- Paid advertising
But the property generally isn’t receiving the same MLS exposure that a broker-listed property receives.
With a Flat-Fee MLS listing, the property can be entered into the appropriate MLS, subject to the MLS’s rules and the broker’s listing agreement.
That puts the property in front of real estate professionals who are actively working with buyers.
Depending on the MLS and syndication arrangements, the listing may also appear on major consumer real estate websites.
Why Does MLS Matter?
A large percentage of home buyers work with a real estate agent.
Those agents frequently search the MLS for properties that meet their clients’ requirements.
For example, a buyer might tell their agent:
“I want a three-bedroom home under $600,000 in Sarasota.”
The agent can search the MLS for matching properties.
A property that isn’t in the MLS may never appear in that agent’s search.
That’s one of the biggest reasons sellers choose Flat-Fee MLS instead of traditional FSBO.
Is Flat-Fee MLS the Same as Hiring a Traditional Realtor?
No.
A traditional full-service listing generally involves substantially more assistance.
The agent may help with:
- Pricing
- Marketing
- Photography
- Showings
- Buyer communication
- Negotiation
- Contract issues
- Inspections
- Appraisal
- Closing
A basic Flat-Fee MLS listing may provide only some of those services.
That’s why sellers should carefully compare the actual services included.
FSBO: The Potential Advantages
Lower upfront cost
You don’t pay a listing broker’s commission.
Maximum control
You control:
- Price
- Marketing
- Showings
- Negotiations
- Communication
Direct communication with buyers
You deal directly with prospective purchasers.
Potentially higher net proceeds
If you successfully sell the property yourself, you may avoid the cost of hiring a listing broker.
FSBO: The Potential Disadvantages
Less MLS exposure
Unless you have an arrangement that puts your property into an MLS, you’re generally relying on other marketing channels.
More work
You become responsible for virtually every aspect of the sale.
Pricing can be difficult
Many homeowners have difficulty determining the property’s actual market value.
Negotiations can become emotional
Buyers may negotiate aggressively, and homeowners can sometimes take criticism of their property personally.
Contract issues
Real estate contracts can contain important deadlines and contingencies.
Liability
Failure to make required disclosures or properly handle transaction requirements can create problems.
Flat-Fee MLS: The Potential Advantages
MLS exposure
Your property is listed through a licensed real estate broker in the applicable MLS.
Lower listing expense
You pay a predetermined fee rather than a percentage-based listing commission.
More control
You may retain control over:
- Asking price
- Showings
- Negotiations
- Buyer communication
depending on your service package.
Professional brokerage involvement
You have a licensed broker involved in the listing rather than handling everything entirely on your own.
Potential access to major real estate websites
MLS syndication can provide substantially broader exposure than a basic FSBO advertisement, although the specific websites and distribution depend on the MLS and listing arrangements.
Flat-Fee MLS: The Potential Disadvantages
You may still have substantial work to do
A basic Flat-Fee MLS listing doesn’t necessarily mean someone will handle everything for you.
You may have to handle showings
Depending upon the plan, you may be responsible for scheduling and conducting showings.
You may have to negotiate
Some sellers prefer having a professional negotiate offers for them.
Additional services may cost extra
Photography, pricing assistance, transaction coordination or other services may not be included in the basic listing fee.
Buyer-agent compensation is a separate consideration
Under current MLS rules, offers of compensation to buyer brokers cannot be displayed in the MLS. However, compensation can still be negotiated outside the MLS, subject to the parties’ agreements and applicable rules.
What About the Buyer’s Agent?
This is an important issue for both FSBO and Flat-Fee MLS sellers.
A buyer may be represented by a real estate agent.
That agent has a separate relationship with the buyer and may have a written agreement regarding compensation.
The seller can potentially negotiate whether and how to contribute toward buyer-broker compensation as part of the transaction.
Sellers should understand that the Flat-Fee MLS fee does not necessarily represent the entire cost of selling the property.
Other potential costs can include:
- Buyer-broker compensation
- Seller concessions
- Closing costs
- Repairs
- Title expenses
- Transfer taxes
- Attorney fees
- Home warranty
- Inspection-related costs
Example: Selling a $500,000 Home
Suppose you sell your home for:
$500,000
FSBO
You might have:
$0 listing-broker fee
But you still could have other selling expenses.
Flat-Fee MLS
Suppose your listing package costs:
$299
You could potentially save thousands compared with paying a percentage-based listing fee.
But you still need to consider all other transaction costs and any negotiated buyer-broker compensation.
Traditional Realtor
Suppose you negotiate listing compensation of 2.5%:
$500,000 × 2.5% = $12,500
The actual agreement could be higher or lower because real estate compensation is negotiable.
The Real Comparison Isn’t FSBO vs. $299
This is important.
The real comparison should be:
How much will I actually net from the sale?
For example:
Option 1
FSBO
$500,000 sale
− selling expenses
= Net proceeds
Option 2
Flat-Fee MLS
$500,000 sale
− Flat-Fee MLS fee
− other selling expenses
= Net proceeds
Option 3
Traditional Realtor
$500,000 sale
− negotiated brokerage compensation
− other selling expenses
= Net proceeds
But there’s another factor:
What price can you actually achieve?
Saving $10,000 in brokerage expenses isn’t necessarily a good deal if inadequate marketing or poor negotiation causes you to sell for $25,000 less.
Which Is Best for You?
FSBO may be best if:
- You have substantial real estate experience
- You understand your local market
- You’re comfortable negotiating
- You have plenty of time
- You’re comfortable handling showings
- You understand the transaction process
- You want maximum control
Flat-Fee MLS may be best if:
- You want MLS exposure
- You want to reduce listing expenses
- You’re comfortable being involved
- You want more control
- You don’t mind handling some of the selling process
- You want a licensed broker involved in the listing
- You want more exposure than a typical FSBO listing
Traditional Realtor may be best if:
- You don’t have time
- You don’t want to conduct showings
- You don’t want to negotiate
- You’re uncomfortable with contracts
- You’re selling a complicated property
- You’re selling from out of state
- You need extensive marketing
- You want someone to manage the transaction
A Fourth Option: Full-Support Flat-Fee MLS
There’s also a middle ground.
Some sellers don’t want to pay a traditional percentage-based listing fee, but they also don’t want to do everything themselves.
That’s where a full-support Flat-Fee MLS listing can make sense.
You can potentially get:
MLS exposure + professional brokerage assistance + lower listing costs
without automatically choosing a traditional percentage-based listing.
What Should You Ask Before Choosing a Flat-Fee MLS Company?
Before signing a listing agreement, ask:
- Which MLS will my property be listed in?
- How long will the listing remain active?
- Where will my listing be syndicated?
- How many photographs are included?
- Who writes the property description?
- Can I change the price?
- Can I change the description?
- Who handles buyer inquiries?
- Who schedules showings?
- Who presents offers?
- Who helps with negotiations?
- Who handles transaction coordination?
- Are there additional fees?
- What happens if the property doesn’t sell?
FSBO vs. Flat-Fee MLS: The Bottom Line
FSBO
Lowest potential brokerage cost — but you do the most work.
Flat-Fee MLS
Lower-cost professional MLS exposure — while you retain more responsibility and control.
Traditional Realtor
More comprehensive service — generally at a higher negotiated brokerage cost.
There is no single option that’s right for every seller.
The best choice depends on the property’s value, marketability, your experience, your available time and how much professional assistance you want.
Sell Your Home With Netrealtynow.com
If you want to sell your home yourself but want the professional exposure of the MLS, a Flat-Fee MLS listing may provide a good middle ground between FSBO and a traditional full-service listing.
Netrealtynow.com offers different levels of service
$299 Flat-Fee MLS
For sellers who want MLS exposure and are comfortable handling more of the transaction themselves.
Full-Support Flat-Fee MLS
For sellers who want more professional assistance without automatically paying a traditional percentage-based listing fee.
Full-Service Listing
For sellers who want professional representation throughout the sale.
The goal isn’t simply to pay the lowest fee.
The goal is to maximize your net proceeds while getting the level of service you actually need.
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