eMortgage Forum Blog

The Multiple Listing Service is the largest list of homes for sale.  The real estate associations in all fifty states sustain it, which keeps it the largest listing of home for sale.  It works so well because most real estate agents use it and most buyers use real estate agents to find their new home.

 

When a real estate agent gets a seller to sign a listing agreement for the agent to sell the seller’s home for a fee of 6% of the purchase price, the first thing the agent does is to place the home in the local Multiple Listing Service.  The agent will provide a “for sale” sign and flyer, place an ad in the newspaper and negotiate with the buyer’s agent.

 

The agent who brings the eventual buyer to the seller receives half the commission, which is usually 3% of the purchase price.  In rare cases, the agent who finds the buyer might be the same agent who listed the home.

 

There are two agents involved when selling a home.  The listing agent works with the seller.  The listing agent is the agent who places the home in Multiple Listing Service, help with the selling price, provide the seller with a “For Sale” sign for the yard and place ads in the local newspaper.  The listing agent will also host the “Open House”.  The listing agent makes 3% of the selling price of the home.

 

The buyer’s agent works with the buyer by searching the Multiple Listing Service for homes to match the buyer’s needs and wants.  The agent will take the buyer to the home and prepare the offer to purchase and help with the negotiations.  They also make 3% of the selling price of the home.

 

Typically the seller would be required to pay the listing agent 3% of the selling price and the buyer’s agent 3% of the selling price.  A flat fee Multiple Listing Service listing removes the 3% commission the listing agent would get and replaces it with a flat fee of about $199 - $599.

 

The seller is still obligated to pay the buyer’s agent, but the buyer’s agent will usually take a 2.5% commission.  As a “for sale by owner” seller you will not eliminate all of the commissions you are required to pay, but it will reduce the amount of the commission you will be required to pay.  It will be worth it, if you can find a buyer for your home.

This entry was posted on Friday, November 2nd, 2007 @ 11:17 am on the category Uncategorized. You can follow any responses to this entry through the RSS 2.0 You can leave a response, or trackback from your own site.