Real estate investor Chris Marnell says he’s flipped half-a-dozen properties in the western suburbs in the last year. For all of the transactions he’s used MLS Town, a flat-fee listing service offered by Oak Park-based Berg Properties.
“It works well, I save money,” Marnell said. “I don’t have to hire an agent or go get my own broker’s license. I’m on the MLS. I do all the leg work, but I don’t have to pay 2.5 percent to an agent.”
MLS Town, offered by cousins Scott and Mike Berg, is a great option for sellers who don’t want to part with a chunk of their home sale money. For a one-time flat fee of $295, sellers are listed on the Multiple Listing Service (MLS) for a year, as well being listed on realtor.com, Trulia, Zillow, ChicagoTribune.com, Redfin, Yahoo, MSN and more. The for-sale home is marketed under Berg Properties, and looks like a traditional full-service broker listing.
Cousins Scott and Mike Berg started their Flat Fee Listing Service, which is geared towards industry insiders and for sale by owners, in 2003. Berg Properties is also a full-service realty company, and although its revenue comes from full service listings, its volume is through the flat fee service, said broker/owner Scott Berg. The company has 230 closed sales in the past 12 months using flat-fee, whose niche is market industry insiders and for-sale-by-owners, Berg said.
“Some people want to control what’s going on,” Berg said. “By being more involved, they save money as well.”
People who have some kind of real estate experience but are not a member of the MLS can benefit, Berg said. You receive the same exposure to all major websites and the same market exposure as you would get from any traditional broker, Berg said.
If you have time and feel confident of the market in your area, as well as have your house priced well, it’s a great option, Berg said.
“For $300, you can always roll the dice,” Berg said.
MLS Town also recently opened a west coast office in Sacramento, Calif. Its Chicago MLS listing service covers northeastern Illinois from downtown Chicago to the North Shore, up to Wisconsin, all through the western suburbs, out to DeKalb and south to Joliet and beyond. Your money also buys you a yard sign, open house postings, advice when an offer is received, and a more hands-on process.
Investor Nick Heidenry uses MLS Town for his investment property rental and sale listings. He said flat-fee versus full-service should be evaluated on a case-by-case basis and that new sellers should definitely also explore the full-service option. But for people who know the business, a flat-fee listing could be all you need.
“Generally, if a seller knows a market well, the cost savings of a flat-fee listing can sometimes outweigh the value-add of a real estate agent at full-commission compensation,” Heidenry said.
One more thing I wanted to mention is the worry that you’ll be boycotted by real estate agents for selling your place yourself. In a normal real estate transaction, the buyer’s broker gets a 2 to 3 percent commission. As long as you offer a similar percentage, agents will show your home.
By using MLS Town’s flat fee service just six times, Marnell estimates he has saved close to $50,000 in real estate broker fees.
“It’s money in your pocket that otherwise is thrown away,” he said.
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Felicia Dechter is a freelance columnist for Pioneer Press. Got a real estate-related story idea? Email [email protected].