Flat-fee MLS

Flat-fee MLS refers to the practice in the real estate industry of a seller entering into an "à la carte service agreement" with a real estate broker who accepts a flat fee rather than a percentage of the sale price for the listing side of the transaction. A flat-fee MLS brokerage typically unbundles the services a traditional real estate brokerage offers and lists the property for sale in the local multiple listing service (MLS) à la carte without requiring the seller to use all services.

The primary objective of a flat-fee listing is to be exposed on the MLS and cut the listing side of the commission completely out by dealing directly with "buyer's agents." In most cases, the seller saves approximately half of the traditional commission and maintains complete freedom to sell on their own. The buyer's broker is still typically offered a percentage though that could be a flat fee as well.

In 1992, Edward Cambas started this process of Flat-Fee Listings as a Lic. Real Estate Broker in Tampa, Florida. Mr. Cambas worked at Buy Owner in Tampa which was a large Real Estate advertising company including having their own television show on Sundays. The "Buy Owner" concept was to pay a fee up-front to go into the magazine and on television while the homeowner fielded their own calls, worked their own contracts, and were responsible for the entire process and sellers would also be able to continue to market on their own in an attempt to find a buyer who is willing, ready and or able to purchase the property. Fees generally range between $49 - $495 and 3% to procuring agent.

A Flat-fee listing on the MLS would provide the seller with a listing just like any other listing with the difference being they maintained freedom to sell on their own and had to deal directly with inquiring agents all the way through contract and closing. At first, there was an uprising by full service Real Estate companies because this service would surely cut their ability to monopolize the MLS and the ability to get Exclusive Right of Sale Listings where no matter what they would get a commission. The FTC eventually stepped in and ruled that the Flat-fee model be able to remain in place because it gave the home sellers another option which would save them money and introduce more competition to the marketplace. In addition, the seller benefits from being syndicated to other site feeds like Zillow, Trulia, Realtor.com and around 100 other web sites which is automatic once it is on the MLS.

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