The MLS Explained

T H E M L S

The Multiple Listing Service, or MLS, is a local database containing all properties listed for sale with a real estate broker. Realtors “share” listings with all other Realtors, and offer compensation or “co-broke” commission to another agent bringing a buyer to a listing. It is by far the most important and effective place to list a property for sale. Properties listed for sale in the South Central Wisconsin MLS are viewed by the public on Realtor.com, WisconsinHomes.com and many other national sites.

Realtors in Madison and surrounding areas place properties listed for sale in the South Central Wisconsin MLS. All homes listed for sale in Dane, Sauk, Columbia, Rock, Dodge, Iowa, Green, Lafayette, Grant, and Richland Counties as well as portions of Jefferson, Crawford, Vernon, Juneau, Monroe, Adams, Marquette, Green Lake, and Waushara Counties are found in the South Central Wisconsin MLS.

H O W T H E Y W O R K : Traditional Listing Brokers

(Examples of traditional Listing Brokers include: Bunbury, Century 21, Coldwell Banker, First Weber, Remax, Restaino, Stark Company, etc)

In Wisconsin, most traditional Listing Brokers charge you, the seller, 6% commission for the successful sale of your home. They enter your listing in the MLS and wait for other realtors (called Buyer Brokers) to bring buyer clients to see your property. If one of the Buyer Brokers sells your property to their client, then your Listing Broker splits the 6% commission with that Buyer Broker...giving that Buyer Broker 3% (known in the industry as a “co-broke” commission), and keeping the other 3% for himself.

Sometimes, a buyer contacts your traditional Listing Broker directly; comes to see your house; then buys it directly through your Listing Broker with no other Buyer Broker involved. In this scenario, your Listing Broker keeps the entire 6% commission for himself. This business model is antiquated, and not designed to benefit the seller....it is designed to help Listing Brokers get rich. This structure has not changed in decades, even as home prices have gone up. If you have a home worth $100,000, you pay 6% commission ($6,000); if you have a home worth $500,000, your still pay 6% commission ($30,000). Doesn’t sound fair, does it? Did you know that when you list your home with a traditional Listing Broker, and you, the seller, decide to sell your home directly to your brother.....you still owe that Listing Broker 6% commission!!! Food for thought, isn’t it?

H O W W E W O R K : Flat Fee MLS

You list your home for sale with Madison Flat Fee Homes for $399, NOT 6% commission. We enter your listing in the MLS, offering a “co-broke” commission to Buyer Brokers (in the Madison area, typically 3%, but you are free to offer as little as 2%). You actively participate in the sale of your home by handling showings, open houses, receiving offers, and attending the closing. If one of those Buyer Brokers sells your home, then your total cost would be the $399 you already paid us, plus the “co-broke” commission you offered in the MLS.

Now here is the great part: By listing with Madison Flat Fee Homes, you retain the right to sell your home “By Owner”. What does that mean? If you sell your home directly to a buyer (or to your brother) with no Buyer Broker involved (which happens all the time due to our excellent national Internet marketing), then your only cost is the $399 flat fee that you already paid us...NO ADDITIONAL commissions are due anyone!! This business model has proven wildly successful, and is most certainly, the future of the entire real estate industry. Take a look at the commission saving chart below.

F O R S A L E B Y O W N E R “F S B O“

Sellers choosing to go FSBO don’t reap the benefits of the incredible exposure provided by listing a property in the MLS. Most sellers advertise “agents welcome”, meaning that they would offer a commission to a buyer agent. Why not go Flat Fee and expose your listing to the large pool of buyers and buyer agents searching for homes on the MLS and the Internet? Why advertise for sale on one or two sites, when you can advertise on hundreds?

Q U E S T I O N S ? C A L L N O E L L E (6 0 8) 5 9 2 – 2 1 0 0

e m a i l: noelle@madisonflatfeehomes.com

Flat Fee MLS

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The MLS Explained