Long Island FSBO’s and the Multiple Listing Service

There used to be a time when homeowners that decided to sell their home on their own had no access to the Multiple Listing Service (MLS), and thus the majority of their marketing consisted of a newspaper ad and a sign on the lawn.  Needless to say, this only provided FSBO's with a limited amount of exposure. 

Eventually, FSBO websites started popping up, but this didn't do much to add to the visibility of FSBO homes as these sites generally have relatively low traffic.  The people that do come to these sites tend to be consumers looking for a "deal" (since they know that there is no broker fee), or agents that are trying to get the FSBO to list their home with them.

The most effective exposure that most homes get is through the Multiple Listing Service (MLS), because this is how REALTORS® find out about homes on the market.  This was not a marketing tool that FSBO's had available to them previously because the local MLS can only be accessed by Long Island Board Of REALTORS® (LIBOR) members.

This has changed recently as brokers with new business models have created an entryway for FSBO's to get on to MLS, but this is the only function that most of these brokers serve.  Many times these brokers aren't even located in New York, much less Long Island.  The logical question that FSBO's should ask themselves before choosing this option is  "does being on MLS alone level the playing field enough to allow me to compete with the all of the other homes on the market, more specifically, the MLS?"

In my opinion, it doesn't, and here are the reasons why...

1. YOU GET WHAT YOU PAY FOR

FSBO's that choose these brokers might not realize that many of the services that are provided by full-service brokers will become the responsibility of the FSBO, including:

• Staging the home
• Advertising the home
• Writing copy for the MLS listing
• Taking photos for the MLS listing
• Pricing the home
• Scheduling appointments
• Being available to show the home
• Holding open houses
• Tracking market trends for price adjustments
• Tracking the average days on market in the area
• Qualifying buyers
• Negotiating with buyers

Should a FSBO get this far, they would then have to do the following on their own:

• Be present during the buyer's home inspection
• Track the buyer's mortgage application progress
• Schedule a walk-through before closing
• Schedule the closing (through a real estate attorney)

Essentially, the sellers that choose a brokerage that doesn't provide other services besides placing the home on MLS are basically still FSBO's because they must take on the role that an agent or broker usually does.  While their home gets exposed to other agents, it is not necessarily in the most effective way possible. 

If you are a Long Island homeowner that is considering selling your home on your own, or if you are considering using a broker that offers no services beyond being listed on MLS, I would suggest doing your research first.

This is the first post in a multi-part series designed to educate Long Islanders about the potential pitfalls of selling a home on their own, or with a broker that offers no service beyond the MLS listing. 

Please check back next week for part 2 of this series.