What Is a Flat Fee MLS Listing?

A Flat Fee MLS listing is a reduced commission brokerage service in which a seller pays a broker a flat fee to have their property listed on the MLS (Multiple Listing Service) and a comprehensive set of real estate search websites. 

The flat fee listing agent forwards all leads to the seller, and the seller handles all aspects of the sale from responding to questions, arranging showings and hosting open houses.

A Flat Fee MLS listing is a lower cost alternative to selling with a traditional, full-service listing agent. Flat Fee MLS listings are often referred to as “entry only” listings.

Using a Flat Fee MLS listing offers a seller the same level of control as selling For Sale by Owner while receiving a greater degree of exposure, particularly to buyer’s agents who ordinarily don’t always see or feel comfortable showing FSBO listings.

The Multiple Listing Service (MLS) is a shared database of real estate listings used by real estate agents to both advertise and search for homes. Each listing in the MLS has a contractually advertised buyer agent commission.

The purpose of the Multiple Listing Service is to encourage cooperation between listing agents who represent sellers and buyer’s agents who represent prospective purchasers.

Listings which are uploaded into the MLS usually automatically syndicate to a standard set of consumer facing real estate websites such as Zillow. MLS listing data also syndicates to the search portals of websites operated by member brokerages.

Therefore, a Flat Fee MLS listing service gives your listing considerable exposure beyond just the MLS.

What is the purpose of a Flat Fee MLS listing?

Is a Flat Fee MLS listing legal?

What are the pros of a Flat Fee MLS listing?

What are the cons of a Flat Fee MLS listing?

What MLS is relevant for my region?

How to list on the Multiple Listing Service

Do buyer’s agents avoid flat fee MLS listings?

What is the best Flat Fee MLS company?

Can you list on the MLS without an agent?

The primary purpose of a Flat Fee MLS listing is to generate exposure to buyer’s agents. The vast majority of home buyers are represented by buyer’s agents, and buyer’s brokers use the Multiple Listing Service to search for and send suitable listings to clients.

Each listing in the MLS has a contractually advertised buyer agent commission. 

Because it offers comprehensive exposure to buyer’s agents, a Flat Fee MLS listing is a much more effective alternative to selling FSBO. For Sale By Owner listings have a high failure rate because most buyers are represented, and buyer’s agents typically only feel comfortable showing listings which are in the MLS and have a documented buyer agent commission rate.

Flat Fee MLS listings are legal in the vast majority of states including New York and Florida. A handful of states have adopted minimum service requirements for real estate agents which effectively prohibit Flat Fee MLS listings. States with minimum service requirements include Alabama, Idaho, Illinois, Indiana, Iowa, Texas and Utah.

A Flat Fee MLS listing is just one of many ways to save money on commission on a real estate transaction. Other options include 1% Full Service for sellers and a buyer agent commission rebate for purchasers.

There are several benefits to using a flat fee MLS listing service:

Comprehensive exposure: A Flat Fee MLS listing gives your home the same comprehensive exposure you’d receive by hiring a full-service, full-commission listing agent.

Commission savings: A Flat Fee MLS listing offers maximum commission savings. You’ll save at least half of the traditional 6% commission. Better yet, you can still end up paying 0% commission if the buyer is unrepresented. Many sellers incorrectly assume that using a Flat Fee MLS listing obligates them to sell to a represented buyer and pay a buyer agent commission. This couldn’t be further from the truth. If you receive an offer from a represented buyer and another offer from an unrepresented buyer, you can do the math and decide which offer is most compelling.

More control: Flat Fee MLS sellers have more control over the process compared to traditional sellers. The level of control you’ll have with a Flat Fee MLS listing is the same as with a traditional FSBO listing.

Less harassment: Sellers who use a Flat Fee MLS listing service face less solicitation compared to traditional FSBO sellers. This is because most Realtor associations prohibit member agents from soliciting sellers who’ve already hired a listing agent. FSBO sellers are routinely harassed and fed misinformation by agents who are trying to land more listings. By definition, agents who solicit FSBO sellers are the most desperate and are therefore willing to resort to extreme tactics to try and land more clients.

Greater transparency: Using a Flat Fee MLS listing will provide you with much more transparency compared to working with a full-service agent. When you work with a traditional, full-service agent, you have no idea how quickly your agent is responding to inquiries. Nor do you typically get to see the actual communications between your agent and interested parties. What if your agent isn’t answering questions thoroughly or using a snarky tone when replying? With a Flat Fee MLS listing, you have total transparency throughout the sale process.

There are a handful of drawbacks to using a Flat Fee MLS listing:

Lack of experience: Even though a Flat Fee MLS listing will give your home comprehensive exposure, you still might not know how to handle yourself during the sale process. Flat Fee MLS sellers are often unaware of market norms in terms of response times, availability for showings or the various steps to the sale process. For example, a Flat Fee MLS seller may think it’s acceptable to take two days to respond to a showing request or to propose a showing date which is a week or more into the future. Agents expect rapid responses to questions and showing requests as well as copious showing availability, often at short notice.

Hidden fees: Some Flat Fee MLS companies will hit you with hidden fees. For example, they may charge you more money to add photos or update your listing. Some Flat Fee MLS brokers often sneak in a percentage commission at closing in addition to the upfront flat fee they charge. The best Flat Fee MLS companies don’t charge hidden fees and get paid at closing instead of charging you an upfront fee.

Limited service: A Flat Fee MLS listing is not the best fit if you think you’ll have loads of questions throughout the sale process. Consider 1% Full Service if you don’t feel comfortable negotiating or handing showings or if you don’t have the time or desire to educate yourself on all facets of the sale process.

There is no single national Multiple Listing Service. Instead, each region has its own MLS. For example, Miami and adjacent areas in South Florida use the South East Florida MLS. Long Island in New York uses the OneKey MLS.

In rare instances, a region may have more than one MLS. This is the case in NYC, where there are four broker databases in operation: REBNY RLS, the OneKey MLS, the Brooklyn MLS and the Staten Island MLS.

Even if there is more than one MLS, there’s typically one database which is dominant. In NYC, this is the REBNY RLS. Some agents are members of more than one MLS. When this occurs,  the same listing may appear in more than one MLS.

The biggest pitfall of a Flat Fee MLS listing is being listed in the wrong MLS. Some national flat fee listing companies may promise to list your home on “your local MLS” without specifying where your listing will be posted. Oftentimes they end up listing your home on an irrelevant MLS, such as the rarely used New York State MLS in NYC instead of the dominant REBNY RLS broker database.

To list a property on the Multiple Listing Service (MLS), you will need to work with a real estate agent or broker who is a member of the Realtor association which operates the specific MLS in your area. 

Non-member agents do not have the ability to submit listings into the MLS, nor do homeowners.

Since MLS databases vary by region, this generally means you need to work with an agent who is local to your area.

Listing on the MLS does not mean you have to pay 6% commission. There are less expensive ways to list your home on the MLS. A Flat Fee MLS Listing is the most cost effective option for listing your home on the Multiple Listing Service.

Hybrid options also exist in the form of 1% Full Service. This type of service offers the thoroughness and convenience of a traditional, full-service listing for a more reasonable commission rate.

There is no inherent reason why buyer’s agents would avoid Flat Fee MLS listings. All listings in the MLS offer a contractually guaranteed buyer agent commission, regardless of whether the seller is paying a listing agent a flat fee or a percentage commission. All a buyer’s agent cares about is getting paid.

Moreover, real estate agents are prohibited from engaging in anti-competitive practices such as boycotting discount brokers because it would constitute an antitrust violation.

Buyer’s agents frequently avoid FSBO listings since there’s no contractual assurance of getting paid as is the case with MLS listings. After all, why would a buyer’s agent take the word of a FSBO seller who probably dislikes brokers vs. showing a listing in the MLS which has a guaranteed commission amount in writing?

The best Flat Fee MLS companies don’t charge upfront fees, allow the maximum number of photos permitted by the MLS and don’t nickel and dime you for updating your listing. 

Most Flat Fee MLS listing companies charge an upfront, non-refundable flat fee. However, some companies such as Hauseit don’t charge any upfront fee and only collect payment if and when you close.

It is not possible to list your home on the MLS without using an agent. Each MLS is only accessible to member agents of the specific Realtor association which operates it.

However you can list on the MLS without paying a traditional percentage commission to a listing agent by using a Flat Fee MLS listing service.