How to Choose a Flat-Fee MLS Broker

Listing your property on the Multiple Listing Service (MLS) gets you on Realtor.com, a national website that gets over 6 million visitors per month, and assures buyers’ agents that you will “cooperate” (pay them a commission) if they bring you a buyer who closes escrow. In the past, you had to list your property with a full-service listing agent in order to get on the MLS, but no more. It’s now possible to get an MLS listing for a low flat fee. Here are the terms you should insist on from your flat-fee broker:

An Open Listing or Exclusive Agency Listing with a cancellation clause

This allows you to find a buyer on your own without paying a commission. You can revoke an Open Listing Agreement at any time. Adding a cancellation clause to an Exclusive Agency Listing also allows you to get out of it whenever you want. Don’t sign a listing agreement unless it’s a standard contract produced by the California Association of Realtors (CAR). Since CAR forms don’t contain cancellation clauses, this clause will appear as an addendum.

A promise to forward buyer inquiries to you

The Realtor Associations who manage the various MLSs won’t allow sellers’ names and phone numbers to be displayed on Realtor.com or other public websites. Buyers are only allowed to see the flat-fee broker’s contact information. Some flat-fee brokers take advantage of this--when they get inquiries, their goal is to capture the buyer’s agent’s commission for themselves. Choose a flat-fee broker who will give your phone number to buyers who call about your property. This gives the buyer the option of buying your home without a buyer’s agent if they wish.

Posting on the proper MLS

Make sure your flat-fee broker promises to put your listing on the appropriate MLS for your county or region. If a broker lists you on an out-of-area MLS, you’ll get very few responses from local buyers’ agents. In Sonoma, Solano, and Napa counties, the local MLS is BAREIS. In Contra Costa and Alameda counties, it’s Max MLS.  In Sacramento County, it's Metrolist.  In Santa Clara and San Mateo counties, it's RE Infolink.

The ability to rent a SUPRA electronic lockbox

Licensed agents have special keys that allow them to open these lockboxes to get keys to homes that are on the market. Many flat-fee brokers don’t carry these lockboxes. If you list with them, you won’t be able to rent an electronic lockbox, since the rules say you can only rent a lockbox from the broker who lists your property.

Assurance that your listing will appear on secondary MLS real estate websites

Examples include Realtor.com, GreatHomes.org, BayEast.org, MetrolistMLS.com and EBRDI.com. Getting on these websites increases your home’s exposure. The ability to make changes to your listing Flat-fee brokers usually allow this, but some charge a fee for each change. You should be able to request up to five changes without paying a fee.

Willingness to post multiple photos

Make sure your MLS broker is willing to post multiple photos on secondary websites like GreatHomes.org, BayEast.org, and EBRDI.com. Most flat-fee brokers, though, will NOT post multiple photos on Realtor.com, since doing so is prohibitively expensive. A trick for getting multiple photos onto Realtor.com is to order a virtual tour package.

Willingness to verify information and offer advice

Some flat-fee MLS brokers never talk to their clients. Instead, they have their clients fill out an online form, and then use that information to build the MLS listing. A good broker will start the listing by accessing tax records, then interview you about the property. This gives the broker an opportunity to warn you if, say, your estimate of the square footage is off or you’re making a risky claim about your home (e.g., “quiet, crime-free neighborhood”).