No, free MLS listing services do not exist because it is uneconomical for brokers to
do so.
Even flat fee listings are barely economical given the potential reputational harm and
the possibility of fines from the local MLS for late listing status updates because of
the seller.
Popular Real Estate Search Websites
Many real estate search websites such as The New York Times, Zillow and StreetEasy allow
owners to list their homes For Sale By Owner; however, listing your home FSBO on one of
these sites will not get your home listed in the MLS.
Not being in your local MLS broker database means you’ll miss out on the 90% of buyers
who are represented by agents.
Furthermore, you won’t be able to differentiate between real inquiries and the literally thousands
of fake inquiries from agents looking to pitch you in person.
For Sale By Owner Websites
Traditional For Sale By Owner websites that sometimes promise free listings never actually
offer you a free MLS listing.
The free trial or free listing these sites are referring to is simply being listed on
their website.
Since buyers don’t actually use these FSBO websites to search for homes, it’s a complete
waste of time and money.
Auction Websites
Be very careful about auction websites promising a free MLS listing.
What these auction companies are doing is charging the buyer a traditional 5% to 6%
broker fee instead of the seller.
So it’s not really free, it’s just changing up who pays it.
Flat Fee MLS Brokerages
By definition, a flat fee MLS broker does not offer a free MLS listing.
These ultra-discount brokers make a living by inputting essentially FSBO listings into
the MLS for a flat fee.
Keep in mind that it’s very obvious to other brokers what these flat fee brokers are up
to, and as a result their listings over time are treated like FSBO listings.
Agent Assisted FSBO
An Agent Assisted FSBO isn’t free, but it enables you to list your home on the MLS and
scores of popular websites for a small flat fee.
The Agent Assisted FSBO method pioneered by Hauseit pairs sellers with a traditional,
local partner broker who never openly discounts their services.
Because Hauseit’s partner brokers aren’t discount brokers, you’ll never have to worry
about other brokers treating them any differently or your deal being disrupted.
The Agent Assisted FSBO method is a win-win for both sellers and brokers.
Sellers can access reduced commission services and brokers can provide such services without
fear of compromising their reputations or their ability to charge normal commission
rates elsewhere.
Why Are Free MLS Listing Services Unfeasible?
Free MLS listing services are unfeasible because they do not make economic sense for brokers.
Let’s say that you make $349 on a flat fee listing, paid upfront.
That already seems tight for a reasonable amount of work of uploading the listing and
making any listing updates and forwarding inquiries over the course of several months.
However, that flat fee becomes less and less attractive when you factor in automatic fines
levied by the MLS for infractions such as changing a listing status late.
Many MLS systems like the Hudson Valley’s HGMLS are extremely strict in this regard.
The HGMLS will issue automatic fines starting at $50 if you don’t change a listing status
within 24 hours.
All of this hassle makes charging a flat fee barely worthwhile, if at all.
Needless to say, there’s no reason any broker would agree to doing this for free and compromising
not just their reputation but their balance sheet.