Phoenix sellers have an option in listing their home; they do not have to list with a traditional broker that charges a listing commission at closing. They can list with a flat fee MLS broker that places their property on the MLS for a pre-paid flat fee, and no listing commission. Because of the flat fee MLS presence in Phoenix, sellers in aggregate have been able to save literally millions of dollars in commissions. Even those seeking out conventional brokers benefit because of the popularity of Phoenix flat fee MLS listings; this is because many conventional brokers need to justify their services, add additional services, or reduce their prices in order to compete in today's real estate marketplace.
For those unaware of what flat fee MLS listings in Phoenix are, they take some explaining, but are simple to understand once your realize how real estate is bought and sold in Maricopa County, Pinal County, and other counties around the state. A conventional broker and a seller typically enter into a listing agreement whereby the broker is paid a total commission amount at closing. It might be 6%, but is negotiable between broker and seller prior to the listing. That broker places the seller's property into the Multiple Listing Service (MLS) database. The exact name of the database for the Phoenix area is the Arizona Regional Multiple Listing Service. This database is not only a way for agents and buyers to search for properties; it is also a way for the listing broker to extend an offer of compensation to other agents. Conduct a random search of residential properties, and you will most likely see that 3% of the sale price is a common figure. Through a flat fee MLS program, all commission offered goes to the buyer's agency at closing. This might be 3%, although again it is negotiable prior to the seller entering into an agreement with the listing broker.
If you are looking for a new car in Phoenix, you might go to the Miracle Mile of car dealerships in Scottsdale. If you are looking for college students to work for your company, you are going to go to the career office of Arizona State University or the University of Arizona. Likewise, if you are looking for real estate, you are going to go to the MLS or one of hundreds of websites like Realtor.com®, AZCentral.com, or others that pull in local MLS listings. It is the real estate marketplace and no other non-MLS website, property list, glossy publication, or anything else comes close. The MLS is the most powerful tool in exposing your home to the market, and motivating agents and buyer to make an offer. Whether your buyer is coming from Tempe to Chandler, from New York to Scottsdale, or Edmonton to Peoria, it does not matter. They are highly likely to use the MLS and related websites as their primary tools. Luckily due to the rise of flat fee MLS programs in Phoenix, the cost to market your property through this mechanism has been greatly reduced.
Donald Plunkett, Congress Realty, is a flat fee MLS broker in Phoenix. He has been recognized by the Phoenix Business Journal year-after-year for volume of properties listed and sold. More info: http://www.congressrealty.com