Read This BEFORE Listing With A Flat Fee Realtor In Nashville

When it comes to selling your home, the 6% real estate commission model might feel as outdated as dial-up internet. Flat fee MLS services claim to be the budget-friendly alternative, but are they truly the best option? If you’re a home seller in Nashville or Middle Tennessee looking to save money without compromising service, let’s explore whether a flat fee MLS service is the right choice for you.

Key Takeaways

• Flat Fee MLS Services: Offer lower costs but minimal support.
• Hidden Costs: Some flat fee providers have hidden fees and limited service.
• Home Sellers Beware: Critical steps like determining a listing price, negotiating with the buyer’s agent and navigating the closing process are left up to you.
• Legal Liability: Flat fee sellers may assume liability if issues arise during the transaction.

Is A Flat Fee Realtor The Best Way To Save In Nashville?

Flat fee Realtors and flat fee MLS services offer a tempting proposition: for a set fee, they’ll list your home on the MLS (Multiple Listing Service), the holy grail of real estate marketing platforms. But while the promise of saving thousands in commissions sounds appealing, these services often come with trade-offs.

So much of working with an experienced real estate agent goes beyond simply marketing the home and getting an offer. This is just one portion of the real estate sales process. I’ve personally sold 200 homes, and from my experience, most of them (70% or so) go smoothly. But, there’s a handful that, through no fault of anyone, can be tricky. It’s transactions like these where my clients are glad to have me in their corner representing them.

Nashville’s real estate market is booming, with home buyers actively searching platforms like Zillow, Realtor.com, and Trulia. Flat fee MLS providers can get your listing seen, but will they give you the tools and support you need to close the deal for the highest price? Let’s find out.

What Is A Flat Fee MLS Listing Service?

A flat fee MLS listing service allows homeowners to pay a one-time upfront fee to get their property listed on the local MLS. This means your home will appear on major real estate websites like Zillow, Realtor.com, and Trulia, making it visible to potential buyers and buyer agents.

However, their real estate services typically stop there. Flat fee MLS companies rarely include essential features like professional photography, yard signs, or help with crucial forms and disclosures. While they make your property visible, the rest of the selling process—pricing, negotiations, open houses, and the closing process—is left entirely up to you.

Additionally, since flat fee MLS is similar to FSBO in the sense that the home seller has full control, the pitfall is that the home seller is less experienced in the home sale process than an agent. Even if a home seller has sold five homes before, this may have been stretched across 15 or 20 years. The market is constantly changing, so even if you had a smooth process in the past, you may consider working with a Realtor who knows the intricacies of the current market.

How Do Flat Fee Listing Services In Nashville Work?

Flat fee MLS services in Nashville work by charging an upfront fee, often ranging from $200 to $1,000, to list your home on the local MLS called Realtracs. Unlike full-service agents, they don’t charge a percentage of the sale price. However, you’re still expected to offer a commission to the buyer’s agent, typically 2-3%.

Once you’ve paid the upfront fee, the first step to listing your home is to sign a listing agreement detailing the terms of the service. While you might receive a lockbox and yard sign as part of the package, don’t expect assistance with market analysis, disclosures, or buyer negotiations.

A major pitfall of listing your home with a flat fee MLS company is potentially mispricing the home. List the home too high, and it will sit on the market and become a stale listing. List the home too low, and you will leave money on the table. Like the old saying “penny wise, pound foolish,” saving money on commissions doesn’t mean much if you miss out on selling your home for the highest price.

The Pros Of Flat Fee MLS Listings

Flat fee MLS services do have their advantages:

• Cost Savings: Avoid paying the typical 3% listing agent commission. For a $400,000 home, this could mean saving up to $12,000.
• Control: FSBO (For Sale By Owner) sellers maintain full control over the selling process.
• Online Visibility: Your home will appear on top real estate websites like Zillow, Realtor.com, and Trulia.

These services cater to homeowners who want to take the reins while cutting costs. However, cost savings alone might not outweigh the drawbacks.

The Drawbacks Of Flat Fee MLS Listings

Here’s the catch: flat fee MLS services often provide only the basics, leaving homeowners to navigate the complexities of real estate on their own. Common drawbacks include:

• Limited Service: No professional photography, staging advice, or open house coordination.
• Hidden Fees: Some providers tack on additional costs for essential services like updating your MLS listing or extending the listing term.
• No Support: Sellers are on their own for negotiations, listing paperwork, and the closing process.
• Buyer Agent Commission: You’re still encouraged to offer a competitive buyer agent commission to attract agents and potential buyers.
• Agent Hesitation: Some traditional agents may avoid flat fee MLS listings due to the perceived risks and headaches of working with inexperienced sellers.
• Legal Liability: With flat fee MLS companies, the liability for legal issues often rests on the seller, whereas brokerages carry E&O insurance to protect their clients.

For most sellers, these limitations can create unnecessary stress and risk, especially in a competitive market like Nashville.

Why Felix Homes Is A Better Choice For Nashville Home Sellers

At Felix Homes, we believe you shouldn’t have to choose between saving money and receiving top-notch service. That’s why we offer a low 1.5% listing commission while providing a full-service experience from start to finish. Here’s how we stand out:

• Full-Service Listing: Professional photography, market analysis, social media marketing, and more—all included.
• Cost Savings: On average, we save our clients $12,375 compared to traditional agents.
• Expert Support: From accurately pricing your home to negotiating with buyers, we’re there every step of the way.
• Transparency: No hidden fees, no surprises. Just 1.5% at closing when your home sells.
• Local Expertise: Whether you’re in Nashville, Franklin, or elsewhere in Middle Tennessee, we understand the local market.

When I work with clients, I like to tell them that my job as their agent is not to make decisions for them. For example, I don’t always know why my clients are selling or the details of their financials. So, my job as their agent is to lend them my expertise across selling over 200 homes to allow them to make the best decision for themselves.

I started Felix Homes to be the most financially responsible real estate brokerage. That doesn’t mean we’re the cheapest option when listing a home. Instead, we ensure you get the highest sales price for your home while charging a lower commission. I’m all for saving folks money on commissions—heck, that’s why I started the company. But, to use the saying again, “penny wise, pound foolish”—it’s also important to ensure you are getting the best outcome.

FAQs About Flat Fee Realtors In Nashville

Are Flat Fee Realtors in Tennessee Good?

They can be a good fit for experienced sellers, but many lack the support and resources needed for a successful sale.

What Are the Best Flat Fee Real Estate Brokers in Nashville?

Providers include companies like FSBO.com, Houzeo, and Homecoin. If you end up choosing the flat fee MLS option, be sure to compare each company’s offering to ensure you’re getting the value you need.

Should I Offer the Buyer’s Agent a Commission?

Yes, offering 2-3% commission is encouraged and helps attract buyer agents and potential buyers. This remains true even after the NAR settlement that made headlines in November 2024.

What Makes Felix Homes Different?

We combine cost savings with full-service support, making us the clear choice for Nashville homeowners.

What About Providers Like Redfin?

Unlike flat fee MLS providers, Redfin charges a percentage of the sale price, similar to Felix Homes.

Our Final Thoughts On Flat Fee MLS Services In Nashville

Flat fee MLS services might seem like a smart way to save, but their lack of full-service offerings often leads to frustration and hidden costs. Felix Homes offers the perfect balance: a low commission rate with all the tools and expertise you need to sell your home quickly and for the best price.

About Felix Homes

Felix Homes is where five-star service meets low commissions! To date, we've saved our clients $1,610,738 in commission fees and have earned 120 five-star reviews on Google!

How are we able to offer five-star service AND lower commission fees? It's simple:

• We're an independently owned brokerage – not a franchise which allows us to keep more of the commission we earn.
• By offering a lower commission, more folks want to work with us which means we close more deals. By closing more deals, we can pass more savings along to our customers!

Still not convinced? Read all about our low-commission mission here.

If you have any questions about the state of the market or the home buying/selling process, please feel free to contact us at contact@felixhomes.com or 615-354-5731.