7 Flat Fee MLS Companies in Austin, Texas to Sell Your FSBO Home

As you can see, Austin sellers may have options in terms of having flat fee listing services to choose from, but keep in mind that not all are created equal. Make sure to consider your home selling situation and needs and weigh them against the strengths and weaknesses of the various services.

What Austin sellers might benefit from a flat fee MLS service?

A flat fee MLS service might be the right choice for you if:

You’re looking to save on the cost of a real estate commission.
Homesellers who hire a listing agent typically pay a 5% to 6% real estate commission, which is split between the listing agent and the buyer’s agent. A listing service can help you eliminate the cost of a listing agent (2.5% to 3%). Instead, you’ll pay a flat fee, depending on the company and level of service you choose. But, you’ll still pay the buyer’s commission in addition to the cost of any other services you use to help you sell your home.

You have a desirable home, and it’s a hot market.
A desirable home in a hot market may sell itself. Listing your home in the MLS may bring multiple buyers and competitive offers your way. However, you’ll still be responsible for all aspects of your home sale.

You want to be very involved in your home sale.
If you have previous home selling experience, and you’re craving a challenge, you may want to take full control of your home sale. A FSBO sale may be your chance to shine. A flat fee MLS is the first step in your home-selling journey.

You don’t want to work with a listing agent.
Not all agents are the same. That said, for whatever reason you choose not to work with an agent, a flat fee MLS company allows you to forgo the services of a licensed agent and still get your home listed on the MLS.

You have the time and energy to invest in the home-selling process.
Depending on the level of service you purchase from a flat fee company, you may need to take on a variety of tasks normally handled by a real estate agent.

“These flat fee MLS listing companies are geared toward people who don’t want to pay a Realtor and want to list themselves,” says Trevor Heuser, a HomeLight Elite Agent who works with over 77% more single-family homes than the average Austin agent.

Heuser adds that sellers with strong-willed personalities and those belonging to older generations tend to gravitate toward the FSBO path.

Even with a flat fee listing service, you’ll typically need the time, energy, and know-how to:

• Use market data to set the best selling price for your home.
• Write a listing description that appeals to buyers and their agents.
• Take professional photos of your property.
• Market and advertise your home.
• Make the state and federal required disclosures.
• Coordinate showings and open houses.
• Review offers and make counteroffers.
• Negotiate the sales price.
• Understand and negotiate the terms of your contract.
• Calculate your closing costs and your net proceeds.
• Navigate any issues that may come up with the appraisal or inspection.
• Handle any local real estate transfer taxes.
• Get the required documentation together.

Pros and cons of using a flat fee MLS listing service

How do I list my home with a flat fee MLS service?

Once you’ve decided to list your home with a flat fee listing service, you’ll follow these steps to get your FSBO home on the MLS:

Step 1: Vet the flat fee MLS service
Research the local service you’d like to use, including packages and rates. Be sure to look up Google reviews and check out the company on the Better Business Bureau. Before you proceed, know how much information you’ll be able to list, how many photos you can post, what forms are available free of charge, and what add-ons come at an additional charge.

Step 2: Register and select a plan
Register on the flat fee MLS company website, select the package you want, and pay the upfront fee online.

Step 3: Enter your property information
Describe your property and upload photos. If your service offers it, fill out the disclosure form.

Step 4: Read and sign your listing agreement
Sign the listing agreement. Be sure to read your listing agreement thoroughly to ensure you can cancel without penalty and won’t owe a listing commission.

Step 5: Review your live listing
Once you complete your listing, the listing company will publish it to the local MLS, which means it will be visible to buyers’ agents. Depending on the company you choose, it will most likely be posted on real estate websites such as Zillow, Trulia, and Realtor.com. However, it can take a couple of days, or longer, to populate. It’s a good idea to review how your listing is displaying on real estate sites to be certain it’s correct and complete.

Are flat fee MLS listings effective?

A flat fee MLS service can be effective. Because the local MLS is one of the best ways to market your home and get it in front of buyers, it’s crucial to list your FSBO home on the local MLS.

However, the NAR reports that FSBO home sales are not a popular option — accounting for only 10% of home sales last year.

Not only are FSBO homes a minority of those available, but also, about 90% of buyers purchase a house using a buyer’s agent. The same NAR data also shows that real estate agents are more effective when it comes to securing higher net proceeds.

“Prior to the pandemic, the number one reason why sellers opted for flat fee MLS services was to save money,” says Heuser. “The other reason is there are some sellers who desire to be in control so much that handing the sale of their house off to a Realtor® doesn’t sit well with them and they choose to be the main point of contact.”

Heuser explains that “homes were selling themselves” during the pandemic, and FSBO sellers could sell quickly and easily. But since the market has cooled from the pandemic boom, he’s witnessed a sharp decline in activity among flat fee MLS listing services in the Austin area. Instead, iBuyers and discount real estate agents have risen in popularity.

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Alternatives to a flat fee MLS services in Austin, Texas

Not sure you want to use a flat fee MLS service? You still have options. Here are a few:

Option 1: Hire a full-service real estate agent

Full-service real estate agents are experienced at selling homes and tackling all of the tasks that go into landing a successful sale. That includes things like marketing, pricing, negotiations, fielding calls from potential buyers, and more.

“The question is, do you want your home just sitting on the market as a listing, or do you want to work with an agent who understands what’s happening in the market?,” says Heuser. “Because numbers are changing daily. When one home in the neighborhood drops, it affects all the other homes.”

HomeLight can connect you to an experienced, trusted real estate agent in your market. Our free platform scans your local area and finds the top-selling agents that fit your selling situation.

Option 2: Flat fee real estate agents

Rather than taking a commission, flat fee real estate agents agree to help you sell your house for a lump sum. This route can make it easier to budget for a property transaction because you’ll know exactly how much money you’ll be pocketing after the sale. At the same time, flat fee real estate agents don’t have a compelling reason to sell your house for a high price. That means they may not work as hard on negotiations, marketing, pricing, or other tasks that full-service agents prioritize.

Option 3: Sell for cash

If you want to expedite the home-selling process, you can also seek a cash offer from a house-buying company, such as an iBuyer or a We Buy Houses investor group. If you sell your home for cash, you likely won’t receive as high of an offer as you would if you listed your home. However, it’s a way to cash in on your home quickly, without having to spend time and energy prepping for a sale.

One easy and convenient way to sell your home fast for cash is to use HomeLight’s Simple Sale platform. This tool allows you to bypass repairs, showings, and commissions and presents you with a cash offer in as little as a week. You’re under no obligation to accept offers, but if you do, this method makes it possible to close in as few as 10 days.

Will I save money with a flat fee MLS listing service?

While you’ll save money on the listing agent commission fee, you may be losing money in the long run. Not only will you be sacrificing time and work, but you will also be proceeding without the expertise of a professional who could save or earn you money later when negotiating with a potential buyer.

If you add in the cost of your time and the likelihood of a lower sale price, you might not realize the savings you hope to see. According to data from the National Association of Realtors (NAR), FSBO homes sold at a median price of $225,000 last year compared to agent-assisted homes that sold at a median price of $345,000 — up to a 35% difference.

In addition, HomeLight data shows that homes listed with a top-performing agent sell for up to 10% more than those listed with an average agent. Of course, your results can vary widely depending on the condition and features of your home, its location, and market conditions in your area.

Heuser cautions FSBO sellers to be realistic, explaining that flat fee MLS companies are often used by homeowners who think the market is still hotter than it is. “You get what you pay for,” he says.

Heuser adds that one complaint he’s heard about some flat fee MLS listing services is that they can be slow to respond to customer queries. “Time is money — buyers will just go to the next option,” he says.

More insights about flat fee MLS services in Austin, Texas

There aren’t specific rules governing the use of flat fee MLS listing services in Austin, however, there are disclosure laws that sellers need to be aware of, covering the state of Texas.

While a real estate attorney isn’t required to help close a sale in the state, FSBO sellers should consider the benefits of hiring a lawyer to assist with closing the sale. Not understanding the legalities of disclosures and contracts could prove to be an expensive mistake if they end up getting sued by the buyer over the transaction.

Here are a few additional insights to consider:

• Unlike traditional agents, flat fee services get paid whether or not a house sells.
• Some listing services change their names, which could make it difficult to track performance.
• Many services will put the seller’s contact information in the listing, so they take on less responsibility for communications.
• As opposed to a traditional agent, there might not be a dedicated person to help sellers with their home sale through the listing service.
• Flat fee MLS listing service fees might be fixed but agent fees are negotiable.

Ready to sell your Austin, Texas home?

Selling a home can be a full-time job. When a seller works with a traditional real estate agent, they have an experienced ally in their court whose job it is to sell their house. On the flip side, FSBO sellers take on much of the agent’s duties themselves. If they already have a full-time job and limited real estate knowledge, they’ll have to spend time figuring out much of the process themselves, which can be difficult.

Working with a flat fee MLS listing service can help alleviate some of the burdens, with some plans providing more assistance than others relative to the cost. However, opting for a flat fee MLS company just to save on the agent commission may not be the best choice because chances are you’ll still have to pay the buyer’s agent commission, fees for the MLS listing service and may not sell for as much as you might using a traditional agent.

Writer Jael Batty contributed to this story.

Header Image Source: (César León / Unsplash)