| Disadvantages of the MLS |
| Think
the MLS is the secret to the fast sale of your home? Think again! |
|
What agents don't want you to know! |
1. The MLS can slow the sale of your home. |
FSBO sellers sold on average, twice as fast
as homes listed on the MLS in 2004. New national research
conducted by agents,
for agents, proves that FSBOs sold 3 weeks sooner than those
who used an agent.1
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| 2. MLS listed homes sell for less than FSBO homes! |
According to the same national study commissioned by agents, they found that FSBO sold homes averaged 29% more gross
profit than MLS sold homes.2
Another study conducted
by a major University,
also commissioned by agents, concluded with the same result: "...it
is concluded that the decision to use a multiple listing
service [MLS] decreases the sale price of a property."3
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| 3. It is expensive to be on the MLS. |
You must pay a commission to both listing broker and selling
broker. Usually this is thousands of even tens of thousands
of dollars!
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| 4. You must pay a buyer's agent commission on the MLS. |
Buyer's agents demand 3% to 4% of your sales price to show your
home to a buyer. In addition, you must pay your listing broker
another 3%-4% commission.
|
| 5. You'll have the broker's
phone number on the yard sign.
|
You sometimes cannot have a FSBO sign with your phone number on it in your yard if you're listed on the MLS. You cannot have 2 signs in your yard (yours and agent's). You must have only the agent's sign with the agent's phone number. They get all the drive-by calls and sometimes try to sell them a different home. Discount brokers use your home and yard signs as "bait" to attract buyers so they can snag them and become their buyer's agent. Many times they sell them a different property (not yours!) and they take 3%-4% commission from the buyer!
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| 6. Buyer's agents are working for the buyer. Not you, the
seller! |
You must pay a broker to put your property on the MLS a flat fee or a commission. If you buy a discount broker's MLS listing for say, $200, to be listed on the MLS, rest assured they are not working for you. Don't expect any advertising and plan on spending $50-$75 a week for a small classified ad in the newspaper. Discount brokers use your home and yard sign as "bait" to attract buyers so they can snag them and become their buyer's agent. Many times they sell them a different property (not yours) and they take a 3% or 4% commission from the buyer! They don't make money selling you a discount $200 MLS listing - they make it by stealing your buyers who are calling them off your yard sign or MLS listing and helping them buy a different home.
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| 7. MLS is for agents only. No buyer ever sees the MLS. |
Contrary to popular belief, MLS is only viewed by agents. The public does not have access to the MLS or its data. Tiny bits of information from the MLS are available on certain national websites.
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| 8. You usually sign a long-term contract
to be on the MLS.
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To be listed on the MLS, you must sign a long-term contract listing agreement with a broker which is extremely hard, if not impossible, to cancel. Once listed, you are trapped with that broker.
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| 9. Home buyers always shop FSBO homes first!
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Home buyers are smart. They know that every home listed with an agent has an inflated asking price to cover the agent's high fees. Today home buyers always shop private home sales first (FSBO). They know it's a win-win for both the buyer and the seller.
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1 and 2: Survey March 2003, Realty Viewpoint, 3,654 nationwide home sellers surveyed.
3A Comparison of Real Estate Marketing Systems: Theory and Evidence, by Mr. Yavas and Colwell.
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