Flat Fee MLS Marketing

By FFMLSM Staff Writer:

Flat Fee MLS Listing - In January of 2004 a savvy group of brokers had a novel concept.  At the time, IP based searching was in its infancy and Texas Broker Jack McLemore (WhyMLS.com) noticed that national advertisers had an advantage in Pay Per Click advertising (PPC) that local IP based advertising could not compete with.  Shortly thereafter he teamed up with Schaunon Winter (BrokerDirectMLSCo.com), and Derek Eisenberg (MultipleListingSystem.com) to form the first cooperative advertising group to market Flat Fee MLS listings on Google, Yahoo and Microsoft.  Soon after, Jeff Kermath (AmeriSellIt.com) and Richard Webber (HomeworksRE.com) joined as partners followed by over 20 affiliates in over 42 states.

 Coops have been around for years.  They are found in small pharmacies and hardware stores that want to compete with the big chains but they are somewhat new to PPC advertising.  Through Broker Direct’s cooperative efforts, an affiliate of Broker Direct is usually in the top two sponsored link positions at any given time for all key flat fee mls list advertising terms.

The Broker Direct Group, LLC currently operates several websites including AmeriOwner.com, ForSaleByOwnerMart.com, ListByOwnerOnMLS.com, ListFlatFeeMLS.com, and SaleByOwnerAmerica.com.

By FFMLSM Staff Writer

In 1971 Charles Schwab incorporated First Commander Corporation and in 1972 he bought out his partners and renamed it Charles Schwab and Company.  In 1974, Schwab had the good fortune of an SEC pilot program that deregulated some brokerage transactions and in 1975 the SEC mandated negotiated commissions for stock trades.  At this point most brokerages raised their fees.  Schwab in contrast started what he called a discount brokerage.

Schwab’s discount brokerage was really an unbundling of trading and advice much like Flat Fee MLS Listings are an unbundling of marketing and transaction management.  This meant that instead of Schwab supporting a force of trained advisors that demanded high pay, he could use back office staff to place the trades and investors would be free to do their own research.  For investors that wanted research and advice, he offered separate services.

To understand how this compares to Real Estate, one has to examine the different structure between the stock brokerage industry and the real estate brokerage industry.  Stock is largely national.  The National Association of Securities Dealers (NASD) is a trade group that is closely supervised by the Securities and Exchange Commission (SEC).  In contrast the National Association of Realtors (NAR) has little or no oversight.  State Real Estate Commissions have power over licensees but little power over National, State or Local trade associations.

Schwab got his start in a nationally (or even internationally) regulated medium.  Flat Fee MLS Pioneers, immediately came up against the wrath of local Realtor® associations.  Schwab was free to grow without persecution where Flat Fee MLS Brokers were taken out back and tarred and feathered.  Sellers were told by local brokers (and still are as of this writing), you can’t List in the MLS for a Flat Fee; that’s illegal.  Sellers were told by traditional Realtors® (and still are as of this writing) if you list with a flat fee firm, we won’t show your listings.  Perplexed sellers asked….Why?  We are still offering you a 3±% commission?  Traditional Realtors® rarely have a response.  However, Realtors® did not count on one major change; Realtor.Com.  Realtor.Com empowered buyers to begin telling Realtors® what they wanted to see.  Realtors® were no longer picking the houses.  This was the gateway that opened for Flat Fee MLS Listings.

The different type of regulatory environment made Flat Fee MLS a more local and regional industry.  In the late 1990s, one firm, Homebytes, actually acquired 50 state licenses and operated in 40+ markets but due to poor management they ceased operatations in under two years.  Today the only national firms are referral firms that farm out work to local and regional brokers.  Four to five regional brokers exist and two brokers cover both the east and west coast with many gaps in service in between.

To be continued…..as more changes occur.

By FFMLSM Staff Writer:
MLS stands for Multiple Listing Service; a database of homes that Realtors^® use to share their listings with other Realtors^®.  In the traditional real estate model with a high 6% commission, the Listing (the Seller’s) Brokerage usually splits its commission 50:50 with the Selling (the Buyer’s) Brokerage each earning 3%.  With a Flat Fee MLS Listing, the listing broker works for a flat fee.  However, today Flat Fee MLS is far more than a Flat Fee Listing of days past.  Today Flat Fee MLS is also à la carte services.

 The traditional brokerage industry prefers to refer to Flat Fee MLS as limited service but it’s far from limited.  What it really is, is consumer choice.  Many flat fee brokers offer all of the services that traditional brokers offer but in a menu format where sellers can pick the services that they want and pass on those they don’t want.  The majority just want MLS marketing and pass on transaction management but a growing number are asking their broker to negotiate and brokers are catering to that demand with a range of programs from a flat fee of a few hundred dollars to ¼%, ½%, ¾% or greater. 

 Who is purchasing Flat Fee MLS services?  The client base seems to be broad.  It seems to be a mix.  Some are sharp educated consumers.  Some are frugal value minded consumers.  Others just want control of their listing and the price is not necessarily the factor.

For Sale By Owner (FSBO) sellers also flock to it as an alternative for costly commissions while still getting the benefit of maximum exposure on MLS and Realtor.com.  The one thing that stands out is the growth in market share.  In 2000, less than 1/10th of 1% of the people used a Flat Fee Broker.  Today it’s about 8%.

Broker Direct Company is Colorado & New Mexico’s premier Flat Fee MLS Listing firm.   Their prices start at $299 for MLS listings and they also offer full service upgrades. The broker of record is Schaunon Winter and her licenses can be verified at the Colorado Real Estate Commission and the New Mexico Real Estate Commission.
Colorada License #IC40037602
New Mexico License #16755

www.BrokerDirectCo.com
877.MLS.FSBO Toll Free
303.648.4000 Phone
877.657.3727 Fax
schaunon@brokerdirectco.com

Prello Realty is a recognized and established Illinois based Flat Fee MLS Listing Company, they have been in business since 2001 and have sold over $150 million dollars of property in 2007. They cover all Illinois counties and their flat fee listing service is reasonably priced at $299.  They also offer a variety of add on products and services including Realtor lockboxes, virtual tours, brochure boxes, and more. The broker of record is Robert Picciariello (#075.0105900).  For more information, contact:
 
www.PrelloRealty.com
Prello Realty, Inc.
2712 N. Ashland Ave.
Chicago, Il. 60614
773-472-8900
Robert Picciariello
Real Estate Broker
Prello Realty, Inc,
office: 773-472-8900
fax: 312-453-0704

HomeWorksRE.com

Serving consumers since 1999 this company is one of the pioneers of the Flat Fee MLS listing model. Time tested and successful this company now serves five states, California, Arizona, Nevada, Oregon and Washington state.

Homeworks Real Estate embraces a service model focused on “give the consumer what they want.” Service options range from a low $259 for a basic MLS listing or $395 for a full package of services which includes a sign, forms, extended listing duration and phone support.

Homeworks Real Estate Inc. enters the client’s contact information into an automated phone database system that allows home shoppers to contact the owner directly from websites that only allow the listing agent’s phone. The idea is to give the seller the best chance to sell with the least cost.  www.HomeWorksRE.com

HomeWise Real Estate services sellers in 8 MLS areas covering 59 of Ohio’s 88 counties.  With HomeWise, consumers can choose the services they need and pay for those services.  They offer 3 listing options:
Basic for $399
Maximum for $499 
Plus for $499 & ½% at closing which includes contract negotiation.

Sharon Jebavy, the HomeWise Broker of Record, has 19 years experience in the industry.  She holds a degree in real estate and pioneered the Flat Fee concept in Central Ohio, in June of 2001.  HomeWise is strictly an Ohio company and strives to cater to the needs of Ohio homesellers.  It is also BrokerDirectMLS.Com trade group affiliate for Ohio.

Web Site: www.BrokerDirectMLSOhio.com
Office: 800-579-1979
Email: Sharon@HomeWiseMLS.com
Ohio Broker #358029

MLS2U.Com is a website of Continental Real Estate Group, Inc., a licensed real estate brokerage covering several East Coast states, including Connecticut, District of Columbia, Delaware, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Virginia. Their listings start at $299. They offer a variety of add on services including local Realtor lockboxes, virtual tours, fax on demand, and caller ID tracking on calls.

The broker of record is Derek Eisenberg and he is licensed in CT (#REB.0756009), DC (#CO9835517), DE (#R2-0003013), FL (# BK3201465), MA (#145125), MD (#611425), NH (#062752), NJ (#8734252), NY (#32EI0910766), PA (#RM062792A), RI (#B15997) and VA (#0225 100252). For more information, contact:

mls2u.com
Continental Real Estate Group, Inc.
3 Elm Avenue
Hackensack, NJ 07601
(877) 996-5728

WhyMLS.com is a well recognized and established local Texas Flat Fee MLS Listing Company. It appears to be the largest Texas flat fee MLS provider.  This company has been in existence since 1999, saving consumers thousands in commissions. The broker of record is Jack McLemore #0460808. They service most areas in Texas: Dallas, Fort Worth, DFW, Houston, Austin, San Antonio, Tyler, Corpus Christi, Waco, College Station, Denton, and many more cities for Texas Flat Fee MLS Listing.  Minimum Service Laws is upheld and provided, as required, by Texas Sate Law, at www.WhyMLS.com 

Home office is in Texas.

Web Site: www.WhyMLS.com

Office: 1-800-433-5206 

Email: info@whymls.com

ListFor98.com a.k.a. AmeriSell Realty covers the entire state of Michigan except the western U.P. They have been a Flat Fee Realtor for over 5 years and have programs starting at just $98 to list in the local Multiple Listing Service &  Realtor.com®.

As far as ease of use, this site is it.  It goes right to the programs, lays out everything in a simple straightforward fashion and the broker even provides his cell phone; something we have not found from any other brokers on this site in all 50 states.  It appears this broker puts customer service first.

Listfor98.com provides offers several different listing programs.  In addition, they give the seller every conceivable marketing feature regardless of the program you choose.

They also offer full service as an option for only ⅓of 1% (.0033) to process the offer from start to finish. They refer all buyer leads directly to sellers. AmeriSell Realty also rebates half of their commission to buyers payable at closing if you use them as a buyers agent.  The broker of record is Jeff Kermath Lic# 6505330456

ListFor98.com
a.k.a. AmeriSell Realty
490 Hunters Crest
Saline, MI 48176
Call 888-909-LIST (5478)
Fax 866-358-1349