Selling your home is one of the most important financial decisions you’ll make. If you’re like many savvy homeowners, you may be exploring the For Sale By Owner (FSBO) route to avoid paying hefty Realtor commissions. The question is: what’s the difference between a FSBO flat fee MLS vs. traditional Realtors?
Flat Fee MLS services are a leading alternative to working with a traditional agent. They give FSBO sellers access to the same listing power that real estate agents use—without the 5–6% commission. In this article, we’ll break down the real costs of selling with a traditional Realtor versus a Flat Fee MLS service like HomeRise, so you can decide which option puts more money back in your pocket.
The Traditional Realtor Model: High Cost for Full Service
For years, the standard real estate model has involved sellers paying a commission between 5% and 6% of the home’s sale price. This amount is usually split between two agents—the one representing you, and the one representing the buyer.
With a $500,000 home, this means you could pay up to $30,000 in commission. Typically, each agent gets 2.5% to 3%, or about $15,000 apiece.
Here’s what that fee is supposed to cover:
- Help pricing your home with market data
- Staging tips and advice
- MLS listing and marketing materials
- Coordination of showings and open houses
- Offer and counteroffer negotiation
- Handling of contracts and closing prep
While full-service agents do offer convenience, they also take a large cut of your home equity. If you’re comfortable handling parts of the process yourself, you may not need to pay for the whole package.
The Hidden Downsides of Traditional Agents
Aside from the high cost, there are other trade-offs to consider:
- Less control: You may have limited say in pricing, scheduling, and negotiations.
- Communication gaps: You depend on your agent’s schedule and responsiveness.
- Generic marketing: Many agents use limited—if any—extra marketing techniques.
Many sellers today are confident, tech-savvy, and ready to manage their sale—they just need access to the tools agents use. That’s where Flat Fee MLS shines.
What Is a Flat Fee MLS Service?
A Flat Fee MLS service lists your home on the local Multiple Listing Service (MLS)—the main platform real estate agents use to search for properties. Instead of paying a percentage-based commission, you pay a one-time, upfront fee.
Here’s how the process works:
- You choose a package from a Flat Fee MLS provider like HomeRise.
- You provide your property information, photos, and listing description.
- The provider lists your home on the local MLS. Your listing also appears on popular public sites like Zillow, Realtor.com, and Trulia.
- You manage the sale from there—handling showings, buyer inquiries, and negotiations.
- At closing, you pay no listing commission. You only pay the buyer’s agent commission if you’ve chosen to offer one (often 2.5–3%).
Why FSBO Sellers Use Flat Fee MLS
A Flat Fee MLS listing gives you the best of both worlds: MLS exposure without the high cost. Here’s why it’s such a compelling option for FSBO sellers:
- Major savings: You eliminate the 2.5–3% listing agent commission entirely. On a $500,000 home, that’s up to $15,000 back in your pocket.
- MLS exposure: Your home appears on the same MLS and third-party sites used by traditional agents.
- Full control: You set your own price, handle negotiations, and choose when to show your home.
- Flexibility: You decide what commission to offer a buyer’s agent (if any). Offering a fair rate—usually 2% to 3%—is often recommended to attract agent-represented buyers.
- Faster listing: Your home can be live on the MLS in a matter of hours or days.
This setup is ideal for sellers who are confident, organized, and ready to take ownership of the process.
What Other Costs Should You Plan For?
While Flat Fee MLS services cut out the biggest expense—listing agent commission—you may still want to invest in other key areas:
- Photography: Professional listing photos can cost $200 to $500 but are essential to making a great first impression.
- Staging: Even basic staging or a consultation (typically $100 to $1,000+) can boost buyer interest but often isn’t necessary.
- Legal assistance: Hire a real estate attorney and/or work with a title company for contracts and closing support. Budget $500 to $1,500 depending on your state.
- Signage and marketing materials: Yard signs, flyers, or targeted social ads may run $50 to $200.
- Time commitment: Selling FSBO requires your time to manage inquiries, showings, and negotiations. Be sure you’re ready for the hands-on role.
- Optional pre-inspection: Some sellers choose a home inspection up front ($300 to $600) to identify issues before listing.
Even with all these expenses, your total costs are likely to be far lower than paying a full 3% listing commission. Some flat-fee MLS offerings, such as HomeRise’s advanced package, may include some of these extra items (such as photography and lawn signs).
Want Some Help Without Paying 6%?
If you start down the FSBO path but decide you want more support, HomeRise also offers a hybrid model—a 1% full-service Realtor partnership. This gives you access to a vetted full-service agent who agrees to work for just 1% of your home’s sale price.
You still choose the buyer’s agent commission (e.g., 2.5%). If you choose to offer a buyer agent commission, your total cost could be around 3.5%—a major savings compared to the traditional 6%.
With this option, you get:
- Full MLS exposure
- Expert guidance on pricing and marketing
- Help with showings, negotiations, and contracts
- Substantial commission savings
- Extra peace of mind
It’s the perfect middle ground for sellers who want support but not the usual high fees.
Which Option Is Right for You?
Here’s a quick summary of the options mentioned:
- Flat Fee MLS: Best for sellers ready to manage their own sale and save big. You get MLS access and keep control.
- Traditional Realtor: Offers full service, but at the highest cost. You lose flexibility and pay the most in fees.
- HomeRise 1% Agent Partners: Ideal for sellers who want full expert help without giving up thousands in commissions.
Final Thoughts
If you’re a confident, hands-on homeowner who wants to save money and stay in control of your home sale, a Flat Fee MLS service like HomeRise is one of the most powerful tools available today. You’ll still get the visibility and professional reach you need—without paying a traditional agent tens of thousands in commissions.
Ready to get started and save thousands on your home sale? Explore your options with HomeRise today!
