More than 90% of all homes in Utah are sold using the Realtor's Multiple Listing Service or MLS. To get your home listed on the MLS, you have to hire a Realtor who is a member of your local MLS. You can either hire a traditional Realtor and pay them 6% of your purchase price, or you can hire a flat fee realtor and pay a low flat fee no matter what your house sells for.
Traditional Service
The advantages of a traditional service listing is that you pay nothing upfront and the realtor does most of the work for you. If you don't have the time to do the work to sell your home or simply don't want to hassel with the work, then a traditional service is a great way to go. The downside is you pay a full 6% commission, which can be a lot of money.
When your house sells, your Realtor will normally take 3% or half the commission you agreed to pay and give that to the Realtor who brought you a buyer. Once in a while, you can find a Realtor who will only charge you 4% or 5%. They almost always give the buyer's realtor 3% and your Realtor takes the difference, but not always. That's where you need to be careful if you hire a traditional realtor. If he or she does not offer the buyer's Realtor at least 3% (especially in a buyers market), your chances of selling your house just dropped dramatically. Always demand they offer 3%.
Most traditional Realtors will help you price your home. The will take and manage all the appointments. They will list your house on the MLS and put a sign in your yard. They will advertise your home on the internet and sometimes in a newspaper or a magazine. These are the normal services that all traditional realtor services offer. Many other Realtors, such as those with UtahHomeCentral, will also offer other services such as helping you stage your home and have it professionally cleaned so it shows its best. They will offer color flyers, provide a professional photo tour, and followup with agent showings for vital feedback. If you can afford the traditional service, it's an easy, hassle free way to sell your house.
Utah Flat Fee MLS Service
If you don't mind doing much of the work it takes to sell your house, you can save a lot of money by using a flat fee mls service. The MLS sells most of the homes in Utah, so it is definitely worth it to get your home listed on the MLS.
Because the listing agent is doing the listing for so little, be prepared to pay a fee upfront, take your own photos, clean your own house, manage your own appointments, perform your own followup, etc. Also, it's important to remember you are only saving the listing commission, you will still need to pay a buyer's agent a commission.
Caution:
Some flat fee services charge a very small fee which can seem very attractive, but remember you get what you pay for. These companies list your home on the MLS and that's about it. Unless you understand how to price your home (do not use Zillow or some other automated service, they are never correct), know what it takes to sell real estate, understand real estate law, etc, you will want to find a flat fee service that provides coaching and contract assistance. You will pay a little more for this service, but our experience shows that it is well worth it.
