This article was written by Keith Gordon, broker for ADDvantage, a Florida based discount real estate brokerage firm specializing in red carpet service for flat fee MLS
Q: When a Florida Realtor® calls for showing instructions for a flat fee listed property in Florida, how should they be handled?
A: Florida Realtors® are professional. They want quick answers and accurate showing instructions. They will quickly pass over your listing if the broker or seller (you) fail to respond quickly to their call for showing instructions. Their biggest fault is calling Saturday morning for a Saturday morning showing.
Solution: Because Realtors® represent over 80% of real estate sales in Florida, the best way to handle Realtor® calls is in real time by a live agent or representative. Realtors® should be given instructions to call the seller and be given the seller's name and number. All calls should be documented in real time into an email which is sent to the seller and stored in their account for future reference. ADDvantage does this as a rule and also offers Agent Assure™ which is a service that schedules Realtor® and buyer appointments for the seller.
Q: Is a flat fee MLS seller in Florida at a disadvantage when negotiating a sales contract with a Realtor?
A: Yes. In Florida, sellers need to be very careful that their limited real estate contract knowledge doesn't give away the farm and the kids too. At times, sellers can handle the offer/counter offer without third party assistance because they have experience negotiating real estate contracts or a savvy enough that they can understand the language in a FAR or FARBAR sales contract.
Solution: If in doubt, seek professional advice before signing a sales contract. Contract representation service is available through ADDvantage Plus $799 up front and $500 at close. Or, seek the advice of a real estate attorney.
Q: If I sell a home using flat fee MLS, what might be the most difficult part?
A: In Florida, the most difficult part of selling flat fee MLS would be the inspection. The reason the inspection is tricky is because the unrepresented seller(s) (flat fee listed) will take the inspection report too literally and possibly offer too much compensation to the buyer. In essence, Realtors® might strong arm the unrepresented sellers and convince them that if they don't rip off the roof, re-marsite the pool, tear out a wall and trim the hedge, then the deal is off.
Solution: Hire a seasoned real estate broker or real estate lawyer to negotiate for you, especially if the house is $500,000 and up. In Florida, there are many potential issues to negotiate such as: (i) termites (subterranean and drywood); (ii) roof; (iii) pool and pool equipment; (iv) the “contract repair limit” in the sales contract. The list goes on. To a seasoned professional, these issues are easily resolved because, essentially, the house is sold “as is.”
Q: What is the most common mistake a Florida homeowner makes when flat fee MLS listing a home?
A: Top mistake in Florida: They list flat fee in the MLS and the listing broker couldn't care less whether the seller gets buyers leads or not.
Solution: Find a Florida based flat fee MLS service that cares. Hopefully one that answers the phone 8-8, 7 days a week…ADDvantage does!
Q: What is the second most common mistake a Florida homeowner makes when flat fee MLS listing a home?
A: The second most prevalent mistake a Florida homeowner makes is setting their MLS list price too high or too low.
Solution: Research Realtor.com, Homes.com, drive your neighborhood and collect house flyers. Use this info to establish where homes of similar quality and size are listed. Talk with local Realtors® that have sold a home nearby (they will of course solicit you to list full service because of course, “they have a buyer.”) Or, order a CMA (Comparable Market Analysis) $50 from ADDvantage or a full appraisal for $350.
Q: A Florida full service Realtor® told me that if I list flat fee in the MLS, other full-service Realtors® wouldn't show my property. Is this true?
A: Yes but only a few (5% old school won't).
Solution: In Florida, providers of flat fee MLS services have been and continue to be a semi-hot topic among all Realtors. The DOJ (Department of Justice) is keeping a close eye on any “possible” collusion or conspiracy among any full service traditional Realtors® and brokers that might indicate collusion to “not show” a flat fee listed property.
The history on the subject goes back well over 10 years when many MLS boards and State-run Realtor® Associations backed lobbyists to power through new laws excluding flat fee MLS business models from competing against full service 6% listers.
In some states, minimum service laws were passed requiring Realtors® to abide by certain “minimum service levels” a.k.a “minimum service laws” which by design could exclude Internet based flat fee MLS business models from legally operating within such a state. Texas was the most aggressive but lost much of their anti-flat fee legislation recently.
While 95% of Realtors® in Florida will gladly show an un-represented seller (flat fee listed) property, some Realtors® do find dealing directly with the seller “non-conforming.”
Their top 3 complaints are:
Solution: Hire a flat fee company that has listing software that allows sellers, Realtors® and the flat fee company to all be on the same page, at the same time. ADDvantage has an excellent reputation with Realtors® in Florida.
Q: How do Realtors® “feel” about sellers using flat fee to list in MLS thus bypassing full service Realtors?
Solution: This question needs to be answered in two parts. First, “buyer's agents” work for buyers and really don't care because they get the commission regardless of whether the property is listed full service or flat fee. Although, most buyer's agents (Realtors) believe that if a seller is “self-represented” (meaning flat fee listed), they (the buyer's agent) will receive less service from the flat fee broker. Note: ADDvantage is a different flat fee brokerage firm in that we over-service our clients and Realtors® with our unsurpassed 8:00-8:00, 7 days a week live support.
The second part of that question is, in general, how do full-service Realtors® feel about sellers that choose to go the flat fee route? In general, they are not pleased. Keith Gordon, owner and broker of ADDvantage in Florida, believes, “30% of Realtors® believe sellers have a choice about how they sell and it's a matter of ‘evolution’ of the real estate industry. About 20% of the Realtors® don't really understand real estate in general and aren't familiar with “self-represented” sellers; 40% put up with this ‘unbundled approach to selling real estate’ with the realization that the DOJ (Department of Justice) has made it clear to MLS boards and state legislatures that they should NOT attempt to set laws in place that would limit the public's choice on how they can engage Realtors® to sell their property. Then there's the 10% ‘nasty club’ who will complain about flat fee companies and about the weather as well.
Q: My home is in Florida. Will full service Realtors® shun my listing?
Some Realtors® in Florida say it is more difficult dealing directly with a seller and a flat fee MLS company, however, the overwhelming majority do not care.
Truth 1: Realtors® representing buyers are responsible for writing the sales contract…. every time (never the listing agent). The agent representing the buyer is the one doing 75% of the work.
Truth 2: Realtors® are real estate professionals and unrepresented sellers (flat fee listed) typically are at a disadvantage when dealing with offers and counter offers initiated from Realtors. Realtors® being commission based should be thrilled to be matched against the contract skill level of an unrepresented seller.
ADDvantage Plus is our full representation service $799 up front and $500 at the close (more)
Can a Realtor® assist a seller with a lease option to purchase contract?
A: No. The reason is the Florida Supreme Court has not approved a lease/option to purchase form and therefore considers this practicing law. Therefore, only a lawyer or a non-licensed person can write a lease/purchase type of contract.
Solution: Caution should be given to this area as many lease/purchase contracts end up in litigation.
Q: My home is in Florida. If I list my home using a MLS flat fee service, what would I say if a real estate agent asked me, “Who is the broker for your listing”?
A: You would give the name of the Florida brokerage firm that inputted your flat fee MLS listing. In our case, it would be ADDvantage Real Estate Services because we are the holder of the Florida broker license.
Q: If I use a flat fee MLS service in Florida, will I be self-represented?
A: Yes.
Solution: Get represented if you feel you need that level of service (see ADDvantage Plus)
Q: What does self-representation mean in Florida?
A: It means the Florida home seller represents himself/herself in all contract and other matters regarding the sale of the property. A flat fee listing in the MLS mean the same as being “self-represented.”
Solution: Nothing wrong with being “self-represented.” Possible issue: The seller doesn't answer their phone and/or return Realtor® calls promptly and thus loses potential buyers and aggravates the Realtors.
Q: I am considering selling a home in Miami, Florida. I want to use flat fee MLS but also want representation. What's the solution?
A: In Florida, it is advisable to be get professional representation when transacting real estate. The main issue with being flat fee MLS listed in Florida is that the seller is often matched against the skills of a licensed Realtor® representing the buyer. This mismatch can result in a less favorable deal for the seller. This lack of knowledge in contracts can lead to other complications leading up to the closing.
Solution: At ADDvantage, we offer ADDvantage Plus, a full contract representation program. We allow our clients/sellers the opportunity to switch between our flat fee MLS programs at any time.
Note: Sellers may also seek the advice of a real estate attorney as well. If using an attorney, find one that sees 5 or more transactions per month (one that has a title company is an indication that they see volume), not one that sees 1 or 2 transactions per month because sometimes real estate attorneys attempt to rewrite the pre-approved FAR (Florida Association of Realtors) or FARBAR (Florida Association of Realtors/Florida Bar) contract thus complicating the deal.
Q: I am flat fee listed in the MLS and I live in Florida. What do I say if a Realtor® or agent asks, “What is the commission”?
A: You would say, “My broker is offering 3% as a co-broke.” (If you have chosen 3% commission when you listed)
Q: Why use the term, “My broker is offering”?
A: Florida Real Estate Law states that the listing broker is the one paying the other “selling broker” the offered co-broke commission. That's the reason you say “my broker is offering 3%” as a co-broke.”
Q: What is a “co-broke”?
A: “Co-broke” is short for cooperating broker….it means one broker, the listing broker, will cooperate and share commissions with another broker that brings a buyer.
Q: How does a Florida flat fee MLS company manage their MLS flat fee listings without sophisticated MLS software?
A: By hand.
Solution: Some Florida MLS flat fee companies do have MLS listing software. Most do not. Without such software, it would be difficult or impossible to track all the MLS listings as well as all the client changes. The other issue is profitability. A seller obviously doesn't want their Florida flat fee MLS provider to go “broke” on them in the middle of a MLS listing. Without MLS listing software, labor costs skyrocket, profitability goes out the window and the seller gets less service.
Ask your Florida flat fee MLS company if they have “listing software” to track changes and listing data before you list with them. Otherwise, it may be a big mess!
Q: If I list flat fee on the MLS with your service, would I receive all buyer leads (non-represented potential buyers) that find there way to you, the broker of record?
A: Yes.
Solution: The most efficient and beneficial way for a seller to receive leads would be for the listed broker to forward all sales leads to seller by email in real time. As well, because flat fee MLS listed sellers can sell the flat fee listed property themselves and pay no commission, it would only make sense that the broker would not “work” and of these non-represented leads himself/herself but rather hand them over to the seller to work. Otherwise, how would a seller get leads besides an open house or calls on the yard sign? (These are excellent means of getting a good lead but in a limited service/flat fee relationship, ALL leads should go directly to the seller unless specifically agreed upon by the broker and seller.)
Q: Can I cancel my Florida flat fee MLS listing any time?
A: Yes.
Solution: The answer should always be yes with one exception. Any flat fee listing in Florida can be cancelled by seller as long as the seller has not already entered into a sales contract.
Note: Before signing a “limited Service Listing Agreement” read it carefully. Some companies are not advocates of seller's rights so caution is advised. Some flat fee companies charge a commission when you close (1/2% or more).
WARNING: Do not pay for flat fee services until you see the details
99% of the Florida flat fee websites request that you pay first, then complete the listing agreement, property info, etc. This is not recommended because the seller needs more information such as; (1) who is the actual listing broker; (2) what's in the listing agreement.
Of course at ADDvantage, you pay in the last step (step 4) of the signup process not the first.
Q: Can a flat fee MLS listed property be temporarily withdrawn from the MLS?
Solution: Yes. The expiration date of the listing remains the same and there should be no charge for this service.
Q: Why should a seller pay more than $150 to list flat fee in the MLS in Florida?
A: In Florida, most flat fee MLS offerings on the Internet today will not be around in one year because; (i) there is limited profit in flat fee MLS unless ZERO service is offered; (ii) there is no chance of profit unless the flat fee MLS company has invested resources to build MLS listing software to efficiently manage listing changes, etc. (most flat fee websites do not have listing software, they are only websites); (iii) at $150, there is no money to service the account.
Solution: A seller wants service. Without service from the “listing broker,” a seller might as well be listed in another state. Get listed with ADDvantage and leave the phones and listing management to us.
Q: All I want is to get listed in MLS. Why should I care who does it?
A: Without excellent support from the listing broker, your MLS flat fee listing might as well be listed in another state; (i) The listing broker must be licensed in Florida and belong to the correct MLS board to get the listing to show for “local” Realtors; (ii) About 40% of all Realtors® calls requesting showing instructions go to the broker of record and the other 60% go to the seller. (iii) Reatlor.com is a third-party website. If suddenly your listing disappears in Realtor.com because they lost data, who is going to open a trouble ticket at Realtor.com and get it back up for you? If the listing broker (or MLS administrator) doesn't answer the phone to resolve client issues/problems as they occur, how is the process going to work? It isn't!
Realtor.com issues can take up to 30 minutes on hold to resolve. Most Florida MLS flat fee companies don't have the time or resources to deal with minor issues, let alone complex ones.
Solution: Hire a Florida flat fee MLS company with sufficient support staff.
Keith Gordon, ADDvantage's broker sees it this way…“Most flat fee MLS offerings on the Internet are very similar to vending machines….you insert money and then you have to hold your breath, cross your fingers and hope that the product will come out.” At ADDvantage, you don't have to wonder. We always deliver.
Q: I would like to sell my home using flat fee MLS. Would a CMA (Comparable Market Analysis) be worth my time?
A: Yes and no. CMA's are brief opinions of value performed by Realtors® based on compiling closed sale data from the MLS which may be out dated or incorrect (due to seller concessions such as “closing costs” paid by seller which are not deducted from reporting closed sales to MLS). Realtors® do not typically call the selling agent to verify if a sale has “seller concessions” as would a appraisal. Therefore, while CMA's are a guide to setting a sales price, they are not completely accurate.
Solution: Value is very important. If priced too high, the phone will not ring! CMA ‘s are accomplished by pulling data from the MLS “sold properties” within (x) miles of your property within the last 6 months (only Realtors® have access to this data). Some county tax sites will have this info but in most cases, it takes far too long for the county to actually record the data. As you know, the Florida market is changing rapidly and 4 month old sales data may be misleading. As well, one or two “sales” within that data might contain seller concessions (example: seller paying 10,000 of buyer closing costs) or a “fire” sale which will skew values. The best CMA is to look at homes listed on the market (Realtor.com) etc; research sold data through the “on-line” public records; and even pick a Realtor® for price guestimates attempting to compile data into a “price per square foot” number (living area). Then add or subtract value for variations in value such as: (i) lot; (ii) pool; (iii) upgrades; (iv) and other considerations. You may also want to consider ordering a CMA through ADDvantage for $50 or a full appraisal by a licensed professional ($350). For more info call 877-232-9695.
Q: If I list flat fee and I find my own buyer, will I pay any commission?
A: No.
Note: Because listing agreement language varies from one company to another, check the listing agreement carefully before listing.
Solution: At ADDvantage, sellers only pay a commission if a licensed real estate agent finds you a buyer and the buyer actually closes on your property. You can market your home yourself, but the rules of the MLS are such that you cannot advertise a different price.
Q: How are “co-broke” commissions set and paid?
A: Sellers decide how much they want to offer to the agent representing the buyer. This commission is called the “co-broke or co-brokerage.”
Q: Can a flat fee MLS listed seller call the broker of record and ask questions about an offer?
A: It depends on the flat fee company. In Florida, most flat fee MLS services do not support sellers in this way.
Solution: Keith Gordon, ADDvantage's (getmoreoffers.com) broker, is available 8:00-8:00 most days to help answer contract related questions for sellers. 877-232-9695 (free)
Q: Should I use a FSBO sign in Florida to help sell my property?
A: No, not if you are flat fee listed.
Solution: ADDvantage Real Estate Services strongly advises Florida flat fee listed sellers NOT to use a FSBO sign. The message a FSBO sign conveys to Realtors® damages and dilutes the marketing efforts of the flat fee company. Keith Gordon recommends using a sign such as “The ADDvantage Network” (note: “Network”…not our brokerage name “ADDvantage Real Estate Services”) because:
Q: I'm an investor and have several homes to sell in Florida. If I list more than one property, do I get a discount?
A: Yes.
Solution: Our system keeps track of your account via your username & password so every time you add another property, your price goes down by $50 per listing.
Q: I am a builder in Florida with 5 homes in inventory to sell. I would consider listing flat fee in the MLS but I need deep discounts. Can you assist me?
A: Yes.
Solution: Go to buildersaddvantage.com. There you will be able to purchase a 5-pack for about $946. You can use these pre-packaged MLS listing in any Florida MLS board all at once or when you need them. As well, you will receive a customized “builder's control panel” to manage price, commission and other features that builders need. (Builders only please)
Q: I am selling my home using flat fee. Do you offer sales contracts and the necessary disclosures approved for Florida?
A: Yes. ADDvantage offers all forms to clients for free.
Q: Should a seller consider reaching markets outside Florida?
A: Yes.
Solution: ADDvantage offers its clients themovechannel.co.uk. The Euro and Pound are strong against the dollar so these buyers are an excellent lead source.
Q: What is the difference between listing “flat fee” through ADDvantage” vs. a “Full Service” listing”?
A: Traditionally, a full service listing has a specific and enforceable (penalty to cancel) agreement which is typically a 6 month listing. The reason for this is some Realtors® advertise in local newspapers and real estate magazines which cost money so they need time to capitalize on selling the listing.
Drawbacks of most full service agreements are:
Advantages of selling flat fee:
Q: What is the MLS and how do local MLS boards operate?
A: In Florida there are about 67 independent MLS boards each designed to support the local Realtors. Realtors® get the designation of “Realtor” by belonging to Realtor® association or board. As well, they elect to abide by a code of ethics that mandates “how a Realtor® should behave.”
The MLS is a database that contains every residential home, vacant land and commercial property listed by Realtors® for sale or lease within a certain geographic area. Realtors® in Miami, FL can't see MLS listed properties in Tampa, FL unless the MLS board joins what's called MLS Advantage (not to be confused with ADDvantage the flat fee MLS Company) which is a network of Florida MLS boards that share data so out of area Realtors® can “view” listings of Realtors® outside their primary MLS area. MLS advantage does not allow an outside Realtor® to input listings, but they can view the listed properties.
How long does it take to input a listing into the MLS?
A: About an hour of full concentration. Make a mistake and the client (seller) will not be happy.
Q: If I list my property on Monday how long before it gets in the MLS?
A: If the flat fee company is on the ball, within 24 hours after signing up. ADDvantage has 3 full time MLS administrators that are efficient, professional and know Florida MLS boards. The catch could be your pictures. You need at least 1 picture of the outside of your property before inputting to the MLS (by rules of the MLS).
Imagine all of the Realtors' listings throughout the USA compiled into one database with less information than what's in the MLS that is available to the general public…that's Realtor.com. The public can view these listing and subsequently contact the listing broker about that property. Realtors® do not use Realtor.com, they use the MLS (where details such as co-broke commissions and other more detailed data is stored.)
Q: What's Realtor.com “Showcase” and is it worth spending more money on?
A: Some flat fee MLS companies change extra money for Showcased properties as they should because Realtor.com has quite a “monopoly” going on. The fees a broker pays are rather high, often $3,000-$7,500 annually, depending on the number of total listings. Here's the latest Realtor.com practice regarding placement of listings: Showcase designated properties are displayed first in the search results (before the standard, non-showcased properties), placing non-showcased properties at a disadvantage.
Fact: The difference between standard and showcased: A Showcase listing has 16 pictures, 2400 characters to describe the property, a yellow border with a headline & scrolling text. (Sample of showcase, click here); a standard listing has typically has not property description other than general factual data such as subdivision name, year built, etc., 1 picture and is placed last in the queue.
Q: Does the seller have control of their Realtor.com listing?
A: It's a third party website. The listing broker and seller have limited control.
Q: Are Realtor.com issues easily resolved?
A: No…every Realtor.com trouble ticket opened by your listing broker or MLS administrator takes an average of 30 minutes to report. Then it may take up to 72 business hours to be resolved.
Solution: At ADDvantage, we are staffed 8AM-8PM…ready, willing and able to resolve Realtor.com issues as they come up….same day service, everyday.
Q: Will my home in Florida show up in the national database of Realtor.com if I list flat fee in the MLS?
Yes. All properties listed in the MLS nationwide automatically transfer to Realtor.com via an “IDX feed” every 24-48 business hours, unless the listing broker opts out. The order of events works like this: (1) MLS; (2) 24-72 hours later “standard Realtor.com listing will appear; (3) 24 hours after the standard Realtor.com listing appears, your flat fee company will be able to edit the standard Realtor.com listing and customize it into a “Showcase” listing.
Q: Is there a “contract” in a flat fee MLS listing in Florida?
No and yes. There isn't a typical Exclusive Right of Sale Listing Agreement contract although there is an “agreement” that says the seller can cancel anytime (because the flat fee company got their money up front, ultimately they aren't affected if a seller cancels). Flat fee MLS listing agreements are for a specified length of time (3, 6, 12 months or “list till you sell.”)
ADDvantage does this all!
* The best yard sign is a sign that resembles a full service sign because Realtors® associate real estate signs with assurance that the listing broker is offering a co-broke commission. The worst real estate yard sign in a “buyers market” is a “FSBO” sign because if a seller in flat fee listed, then this FSBO sign sends a clear message to Realtors® that the seller is flat fee listed or they are at the wrong house address. As well, Realtors® are highly allergic to FSBO signs with sellers' numbers on them because they fear their buyer will go around them and deal directly with the seller.
Q: Why do Realtors® dread working with flat fee MLS companies?
A: Because 97% of all flat fee companies (many of which are just “websites”) offer limited phone support. Need help? Leave a message!
Solution: List flat fee in Florida with ADDvantage Real Estate Services. Why? ADDvantage answers the phone 8:00-8:00, 7 days a week; Realtors® love working with ADDvantage
Q: My property is in Miami, Florida. If I list my property flat fee, will all the Realtors® in the Miami-Dade area see my listing?
A: Yes…if the flat fee company lists your property in one of the three MLS boards in the Miami area.
Q: Should I list my property on more than one MLS board?
A: In Florida, there are some 67 separate MLS boards. Many overlap so being listed in multiple boards that share the same data is a waste of time and money. There are some areas in Florida that being listed in more than one MLS board would be an excellent marketing strategy. One example would be Isles of Capri, a neighboring community to Naples (Naples, being the larger board and a completely separate database from the board for Isle of Capri (Marco Island). This would be a case that being listed in both boards would help significantly.
Other examples would be:
Regardless of what Florida city you're in, you must list your property with the correct MLS board corresponding to your area or local Realtors® will miss you!
Q: What will it cost to list in more than one MLS board?
A: ADDvantage offers additional MLS boards for $125 each. You will be offered this option on sign up.
Q: Will ADDvantage always list my property in the right local MLS board?
Absolutely. Regardless of what city you live in in Florida, ADDvantage will always list your property with the correct MLS board corresponding to your area.
Q: My house is located in a gated community in Florida. Will my home get enough exposure if I list flat fee in the MLS?
A: Homes in gated communities need to be listed in the MLS…period! Drive-by traffic is random. Pointer signs are ineffective unless the community leaves the gates open on weekends just for real estate marketing.
Over 150,000!
Solution: ADDvantage has an email program that will notify Realtors® within 30 miles of your home that your home is for sale. More on Street Smart ADDvantage™ eblast, click here.
Q: Will ADDvantage take an MLS flat fee listing anywhere in Florida?
A: There are a few counties in Florida where ADDvantage has limited access. At getmoreoffers.com (upper left side) enter your zip code and check.
For all of you Florida flat fee MLS needs, try ADDvantage Real Estate