Flat fee MLS is defined as receiving a bundle of specific real estate services for an advance payment. These services are further defined by the language contained in the listing agreement. This listing agreement will bind the seller and the listing broker to do certain things during the listing period and possibly afterwards.
The listing agreement is the single most important document to review and understand before listing your home with any broker. There are several reasons why flat fee MLS services in Tampa do not present their listing agreements to sellers before they request payment for such services.
Many flat fee MLS websites on the Internet are not licensed real estate brokers in Florida. Therefore, they have no listing agreement to offer.
Tampa sellers have a choice between listing with a local Tampa Flat Fee MLS broker or with a national flat fee MLS “website.” If the seller chooses the national flat fee MLS “website” to list their property, that “websites” sole function is to take your payment and refer you to a Florida broker. The number one reason why sellers choose a national flat fee “website” over a company such as ADDvantage is because they have not researched the differences between the flat fee services.
If you list with a national “website”, you are stuck with the “unknown” listing broker’s operation (hours that they answer the phone, professionalism, marketing) and his/her listing agreement that will soon be presented to you by the “unknown” Tampa flat fee broker.”
To avoid this situation, simply make sure you review the listing agreement before paying. A simple way to differentiate between a “national referrer” broker and a local broker would be to call them and ask. As well, if you do not see a listing agreement clearly published on their website then you can assume they don’t want you to see it.
Another indication of a “national website” is their reference to terminology such as “we are the largest national flat fee MLS website in America.” The word “referral website” would mean the same thing.
“The 4 greatest concerns when scrutinizing a flat fee MLS listing agreement are…Buyer Leads, Cancellation fee, the right to cancel at will and hours they answer their phone
One concern a seller would have with a flat fee service would be the right to cancel their listing and re-list with another broker. Some flat fee companies have cancellation fees written into their listing agreement or have language that traps the seller into listing with their “predetermined” full-service broker that is (of course) affiliated with the flat fee broker enabling a referral kickback commission. A convoluted scheme but it happens everyday. The language below would prevent this from happening…
“Seller can cancel their MLS anytime by providing broker with written request. Broker will “unconditionally” withdraw listing from MLS within 24 hours. There is no cancellation fee.”
The term “unconditional” is the language that gives the seller the right to cancel and re-list with another broker at any time.
Many full-service and flat fee companies have language in their listing agreement that references the word “conditional withdrawal.”
If the words “conditional withdrawal” are found anywhere in your listing agreement then presume your broker is trapping you to pay a fee. If these words are anywhere in your listing agreement, the listing broker will not remove the listing from the MLS as “unconditional” but rather “suspend it” until the remainder of the listing period expires. During this “suspended period”, no other broker can take your listing.
A closing fee is not as common as a “cancellation fee” but all the same it would be quite a surprise at closing if your HUD settlement statement had a 1% commission going to the flat fee broker.
Buyer leads from Realtor.com are another reason to have an articulate listing agreement.
The flat fee MLS listing agreement must clearly state if the seller receives all buyer leads from Realtor.com and other Internet sources.
Some flat fee services in Tampa actually say in their listing agreement (and proudly display it) that they TAKE all buyer leads. Other flat fee companies just don’t specify who gets these leads.
ADDvantage flat fee MLS (a Florida flat fee MLS broker) fielded just under 3,000 leads during the past 12 months from Realtors and buyers requesting showing instructions. 1000 of these calls were answered after-hours…that is the reason why Tampa flat fee MLS sellers need to know what hours their flat fee broker answers the phone.
Read more about listing flat fee in the MLS
