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Why For Sale By Owner (FSBO) is NOT Flat Fee MLS

Writer's picture: Will PuenteWill Puente



We hope this article helps to clear a common misconception about FSBO (For Sale By Owner) and Flat Fee MLS Listings. There are Three Main Reasons why they are not one in the same.

1. FSBO is Agentless


The law in the State of Texas states that a Seller can be the only one to sell and advertise their own home. A family member, friend, acquaintance, or any other person cannot do this unless they have a proper real estate license. For Sale By Owner literally means its name, IT CAN ONLY BE MARKETED BY THE OWNER.


2. Flat Fee MLS Listing Always has an Agent


Any MLS Listing needs a Listing Agent to register the property on the MLS (Multiple Listing Service).

This means by definition that it can no longer legally be considered For Sale By Owner.

The Listing Agent is charged to market the property through the Listing Agreement.

This agreement will also be needed in order to get permission to have the home placed on MLS.


3. For This Reason, FSBO is Rarely Successful

This is due to the fact that the Seller does not have access to MLS. Saving on commission is very much possible. 6% Real Estate is a limit on the Seller from the past. However, paying no commission is hard to pull off as a For Sale By Owner. Even Brokers must pay 3% for the sale of their own property.


Conclusion


Once the property is listed on any MLS, it legally creates an agency, unless the Agent is the Seller. ​ There is a misconception that a For Sale By Owner property can be on MLS. ​ Do you see how Flat Fee MLS Listing can be very valuable to you and the sale of your home?


Will Puente, PhD, MBA, JD Candidate


 

We hope this article brought value in your research about for a Flat Fee Listing Agency. If you have any further questions or concerns about your Flat Fee Listing, please call or text the Listing Broker at 972-674-9914

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