Linda Grissette

The Truth About MLS Entry Only Companies

Why is the MLS so important that these companies want to offer the service.  It's important because most sales happen when a real estate professional who is working with a buyer finds the perfect home for their buyer in the MLS and shows it to them.

Sure, you may hear that if you offer to pay the real estate professional, they will bring you a buyer.  The problem is that FSBOs normally aren't in the MLS database and are forgotten about.

So, a few years the idea of "MLS Entry Only" for By Owners started.  Sounds good, doesn't it?  Pay a small up front fee and get into the MLS.  Problem is the licensee who listed your home has already gotten paid and doesn't have any reason to work hard to sell your property.  Sure they usually put it on their web site, but that doesn't cost them any thing extra.  The reality is they probably put clauses in their "listing contract" saying that they aren't really working for you and owe you no other marketing.  After all, they can't afford to do any more marketing....they weren't paid enough!

The next question is will your home be shown. To get showings from the MLS you have to offer an ample fee to the company who brings the buyer.  If not, they will take the buyer to other homes.  Usually they buyer agrees to that because they will have to pay extra to cover their obligation to their real estate professional!  Think about it.  Would you want to work for half or a third of the money you normally do.  Of course not!  And would you want to do twice as much work for the same amount of money...or less.  I'm sure you wouldn't.  Remember, the MLS Entry Only "listing" company stated in their contract that they don't owe you any other service and really aren't even working for you.  Ouch!  So a contract comes in directly from the person working with the buyer.  You are up against a professional who knows what they are doing.....a professional who is working for the buyer.  And then that professional will have to do the work normally done be the listing professional!

MLS Entry Only companies love to state that there is a "conspiracy" against them and For Sale By Owner companies.  No, it's not a conspiracy, it is professionals who have to make a living wage to stay in business.  It costs a lot to be in the industry and real estate professionals don't get paid until after a closing happens.  If you are curious about the expenses paid, see Linda's article.

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