Services are sold a la carte
In theory, all market participants benefit as it is a much more efficient system. For the sellers and buyers, the greatest benefit is savings over traditional commissions. As a stakeholder in the business model, I see a great number of other benefits for the market as well, but for the consumer it boils down to dollars in hand. The agents in a set fee model also benefit, but that is a factor with high variability; the broker/manager must have an effective and efficient model in place.
With flat fee services, everyone benefits, unlike traditional real estate transactions where the real estate agent can allow a home that isn’t selling to sit for months and when the property does sell he gets his 6% anyway. With flat fee services, you pay to list on the MLS and control the aspects of the sales process that you want to control. Areas you may not feel confident in or would like assistance in can be purchased for a flat fee. Services are sold a la carte to give buyers and sellers more control and more options. Everyone wins.
See Also
Now it’s time to play fair
Local multiple listing services are being challenged both internally and externally. In regard to internal issues, in my opinion, we have been too slow to adopt the changes necessary in governance and mergers/acquisitions to keep pace with the external challenges. In regard to external challenges, sometimes we move too quickly, sometimes not quickly enough, to meet and address the issues.
Local MLS services responded to the challenges of the new world by bullying nontraditional brokers. They weren’t prepared for the fight that lead to with the DOJ and consumers. Now, they are forced to adapt. Meanwhile, nontraditional brokers have a head start on the new communication media that allow us to connect with consumers. Realistically, there’s enough real estate to go around. There’s no reason we can’t all play on the same field.
See Also
- What Is The MLS?
How consumers can benefit from the system that realtors have used for decades.
You need a broker to get listed, but it doesn’t have to be a full-time broker
FFMLS – This term refers to Flat Fee Multiple Listing Service. Many people that consider selling their home with an agent worry that they will not be able to list their property in the multiple listing service for the area. In the past, the “MLS” was a list controlled solely by agents and realtors. These days, there are ways to access it without using a real estate agent. You can pay a Flat Fee for your listing, thus the name.
This isn’t entirely true. You still need a broker to get your house listed on the MLS. Home owners can’t just walk up to a window and list on the multiple listing service. You’ve got to gain access. That access is a licensed broker.
However, thanks to flat fee services like IHS Realty, you can get listed on the MLS for much lower than it would cost you to use a full-service real estate broker. We will list your house for you and step out of the picture so that you can handle the rest of the show yourself. We will "stand by," of course, in case you need other services, but you need not contact us against for anything – unless you need or want something.
As a flat fee, or limited service, broker, we offer other services as well. You get to pick and choose what services you need and when you need them. Otherwise, we’re off of your back.
See Also
- Real Estate Store
Check out our selection of real estate services, which you can purchase a la carte as you need them.
Don’t bit the hand that feeds you
Moreover, Internet-based brokerages and discount shops may have dealt a further blow to traditional real estate brokerages. Commissions have fallen to an average of 5 percent from 6 percent a decade ago, although experts say that slide had begun before the entrance of the discounters.
No wonder the NAR tried to shut us out. We were costing their realtors a little bit of money.
But, we’ve learned over the years that increasing one’s income doesn’t mean biting the hand that feeds you. Instead, we seek to provide the best service to our clients and increase our volume through word-of-mouth and other effective methods of marketing. It works. Our long track record shows it.
See Also
Lawrence Bunnell is a consumer’s advocate
In 1997, IHS’s broker began with the concept of a national Online real estate firm offering low, flat-fee real estate services to consumers. The idea originated in response to 1) the growing demand from home sellers for the marketing exposure provided by the REALTOR® Multiple Listing Service (MLS) system 2) downward pressure on the real estate commission brought on by rising home prices, and 3) the ability to cost efficiently market properties to a national audience made possible by the advent of the Internet. By taking advantage of the technology to better service customers, centralizing real estate listing processes and eliminating the need for a large cadre’ of real estate agents along with "bricks and mortar" office locations, IHS Realty is able to provide home buying and selling services to consumers at a tremendous cost savings.
Lawrence Bunnell is the man behind the company. He has been been a licensed REALTOR since 1984. A licensed real estate broker in several states, Bunnell holds a bachelors degree in Political Science and a post-baccalaureate degree in Information Systems. You can learn more about Bunnell on our broker’s page.
See Also
Sellers are saving thousands using flat fee MLS
Saving thousands in equity, while maximizing marketing potential seems to be the motivating factor for home sellers that enlist the services of a flat fee MLS broker. Savvy home owners have quickly come to realize the valuable savings advantage offered by these types of flat fee MLS service providers and discount realtors. Flat fee MLS and discount providers offer the same exposure through the MLS and public websites as any traditional agent with the only difference being, homeowners maintain complete control over the showing and contract negotiation process. With flat fee MLS, customers are afforded the same ancillary services such as home warranties, virtual tours, open houses, and broker assistance (usually available for an additional fee.)
