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The Multiple Listing Service has been one of the keys to the kingdom of real estate. The MLS contains the great majority of properties for sale in a given area. Only agents can list properties in the MLS as a marketing tool to reach other agents and, through them, potential buyers. Agents do not charge sellers for a listing, as they collect a commission when the house sells.

But people who wish to sell homes themselves-FSBOs (for sale by owner)-traditionally have not had access to the MLS. In recent years, some discount brokers have listed FSBO properties on the MLS for a fee, $500 or so, but left the heavy lifting of marketing and showing properties to the sellers themselves.

A south suburban broker is breaking new ground by offering MLS listings to FSBOs free.

Joseph Varan, owner of Varan Realtors Inc. in Oak Forest, will allow home sellers to fill out a form at his site, www.listmefree.com, starting Nov. 3. He then will post the property with the MLS.

"I don't expect Realtors to elect me man of the year," he said.

Because of anti-trust law, the Chicago Association of Realtors says it won't take a policy stand on the issue. Traditionally, realty agents and sellers are free to set any mutually acceptable commission for selling a property-be it 6 percent, $1 or nada.

Varan thinks his new idea will catch on. His holding company is named Thrilled Inc. because he believes consumers will be thrilled with their real estate transaction with him.

Technically, anyone listing in the MLS through Listmefree.com no longer is a FSBO because Varan is the listing broker. If such owners sell the house themselves, they are spared any commission. If a realty agent brings in a buyer, then the seller will have to fork over some form of commission, perhaps 3 percent.

Varan also hopes to find buyers for his FSBO listings, but he expects to make most of his dough from ancillary services, such as selling title insurance at a discounted rate of a $400 flat fee, plus $1 for every $1,000 of sales price (for example, $650 on a $250,000 home) and receiving a 1.5 percent commission from lenders for processing mortgages.

He said he fully discloses relationships with other companies.

Varan said he does not require consumers at Listmefree.com to purchase any services through him.

He has been testing the service since July, 1999, but up to now has promoted it only through word-of-mouth. Using it, he's sold 70 properties throughout the metro area, from Tinley Park and Glenwood, on up to Aurora, Evanston, Lake in the Hills and Elk Grove Village.

He said the Internet has made possible a geographic spread of business that could not be accomplished in the past when agents stayed close to home. He also said he's seen the future of his industry. "I'm phasing out of the conventional business," he said.

He has 15 agents working for him already and is in the process of hiring 24 more in northern Illinois. Half will be on salary; half on commission.

If he encounters competition offering free listings, Varan might begin paying $100 to people who list properties through www.listmefree.com.

Maybe he better reserve the Web site: www.listmeandget$100.com.

Share your thoughts on Listmefree.com with wolinsky@digitaliving.com.

Copyright The Chicago Sun-Times, Inc.
Provided by ProQuest Information and Learning Company. All rights Reserved.


 
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