Is the practice where a seller enters into a listing agreement with a real estate broker who accepts a small, flat fee paid up front, rather than a percentage of the sale price paid at closing. The seller still has to offer a commission to the buyer's agent. Typically, that is 2-3%. A seller cannot get in the mls without offering a buyer's agent commission. Essentially, "You can't play if you don't share" so to say. A Michigan discount flat fee MLS brokerage typically unbundles the services a traditional real estate brokerage offers and list the property for sale in the local multiple listing service (MLS) a la carte without requiring the seller to use its services for valuation assistance, negotiating, transaction management and showing accompaniment. It's up to the seller what services they wish to pay for.
Flat Fee brokers are real estate brokers, just like the national brand names, but offer discounted or unbundled services. Most flat fee brokers do offer full service brokerage services.
In the by owner Michigan MLS ®, the listing agreement between the real estate broker and the property owner typically requires the broker to enter the property into the MLS and provide other contracted services, with the broker acting as what the traditional industry has coined a "limited service broker". However, the flat fee industry prefers the term a la carte broker because the services are not limited. Instead freedom of choice is expanded to allow sellers to pick from a menu of services.
Within the nontraditional real estate services market, there are multiple programs offered to sellers that share the common objective of saving the consumer money by reducing the overall expense of selling real estate. A "nontraditional service" does not automatically entail "limited service". For instance, some full-service Michigan brokers list properties under a full-service agreement but charge a "flat rate" that is not a percentage of the sales price.
Michigan For Sale By Owner Flat Fee MLS ( Multiple Listing Service) is no different from traditional real estate brokerage services. Because the MLS requires a listing agreement between a real estate broker and property owner, the rapid explosion of discount flat fee mls service providers has created a gap in the States developing laws governing flat fee services provided by real estate broker.
The main differences Flat Fee MLS Multiple Listing Service and traditional servicesis that theFlat Fee MLS listing allows the seller to sell as a for sale by owner in and only pay either the up front commission. If an agent brings a buyer only pay them their half. With traditional commissioned real estate agents, if you sell your own property, you will own the agent a high commission. Flat Fee MLS listings allows the customer to sell as a FSBO and with an agent, having the best of both worlds!
GRAR in another state