Here’s an ad I ran across today on Craigslist entitled “Local Realtors Needed To Input Flat Fee Listing Into The MLS”
Hello, we are currently in need of a Realtor in your area to input flat fee listing into the MLS. You must be a licensed Realtor with access to the MLS. You must also obtain permission from your Broker In Charge to work w/flat fee listings. Pays $100 for basic listings and $200 per listing for very limited representation. Listings are for a 1 year term.
Please go to http://www.salebyownermls.net/realtor-join.htm
A regional recruiter will contact you afterwards.
How does this work? What does the contract the seller has with the brokerage say about agency? How can an agent who has never been to the house properly represent the Seller of the house?
What about liability? If something goes sideways, the agent who inputted the listing in that particular jurisdiction would be held responsible. Most Errors & Ommissions policies have a $5000 deductable. So for $100, they may have to make up this deductable amount out of their own pockets. How could this possibly be worth it for any agent or brokerage, unless they’re not in it for the long-haul and they don’t expect to be in business much longer.
This seems to me to be an abuse of the system on so many levels, not to mention, a pretty stupid thing for an agent or brokerage to consider doing.