This article written by Keith Gordon, Broker for ADDvantage Real Estate Services™, for flat fee MLS customers in Tampa (www.getmoreoffers.com)
ADDvantage started in May 2005. Its broker, Keith Gordon, has been a Florida real estate broker since 1984. We now offer flat fee MLS throughout Florida and are members of 18 Florida MLS boards.”
Most MLS flat fee MLS companies in Tampa use what's called “third party websites.” They collect money and then pass off the seller's listing to a third party broker. I call this practice ‘offing’ and it hurts the seller because there is no consistency or reliability. At ADDvantage, we never “off a listing” as we have three full time MLS administrators, are members of 18 Florida MLS boards and we have developed our flat fee MLS concept into a national company using our sophisticated listing software, innovative products and a seller friendly message: “Real Estate By YOUR Rules!”
Tampa discount real broker, ADDvantage, is the only flat fee MLS company that publishes its sales statistics on its website. As of 6/23/2007, ADDvantage has sold 32% of its listed properties.
We have a serious attitude about phone coverage. We are the only Tampa Bay flat fee MLS discount real estate firm that answers the phone 8:00-8:00. We get results.
Tampa Realtors® hold the key to 84% of all Tampa Bay real estate sales.
The National Association of Realtors® says that homes sold through Realtors® net 32% more than those sold by FSBO. Getting your home sold is a huge undertaking. The question is, should you hire a Tampa Bay based Realtor® and pay a total of 6-7% listing commission or go it alone as a FSBO or, take a middle ground and list flat fee on the MLS?
FSBO: Selling FSBO works best in a seller's market because marketing is eliminated. In a buyer's market, which we have today in Tampa and surrounding areas, you need more marketing. The MLS, Realtor.com and other prolific real estate websites such as Homes.com and themovechannel.co.uk are not available to FSBO sellers.
Flat Fee MLS: A flat fee MLS listing in Tampa means the seller pays “no listing commission.” The seller pays only the agent representing the buyer a commission, plus the flat fee up front. Flat fee listing prices vary. In Tampa, prices range from $99-$599, depending on the quality of listing service. www.getmoreoffers.com offers four programs: MLS ADDvantage™-$349; Street Smart ADDvantage™-$599; ADDvantage PLUS-$799 up-front and $500 at close; ADDvantage WORKS-$1299 up-front and $500 at close.
Full-service: A conventional full service listing is 6-7%. Normally 3% of this total commission goes to the listing agent as a listing commission and the remainder is offered by said listing agent to another agent to deliver a buyer. I think listing commissions are worthless 95% of the time unless; (i) the listing agent is so well connected to buyers that that agent will sell your property through those connections; (ii) the seller is not available to help in the showings and cannot lockbox the property because it is occupied.
Tampa Bay Realtors® are motivated by earning commissions. The smart thinking behind Street Smart ADDvantage™ is offer higher than a normal 3% co-broker commission (that's the commission the agent representing the buyer would earn) in an effort to garner more attention from Realtors.
The power behind our Street Smart ADDvantage™: the higher the commission, the bigger the motivation.
Our proprietary Street Smart ADDvantage™ e-mail system sends a bi-monthly email alert to Tampa Realtors® within 35 miles of your property informing them of the “higher than average” commission being offered on your property. By going to www.getmoreoffers.com (left side middle), you can estimate the number of Realtors® that are located in your zip code.
Our Realtor® email list reaches Realtors® in the all Tampa Bay including New Tampa, Brandon and all of Hillsborough County.
Street Smart ADDvantage™ emails are well received by Tampa Realtors® because the message is good news for them…more commission. As well, unlike other Realtor® sent emails which contain information of just “one” property, the Street Smart ADDvantage™ eblast contains typically 10 properties all offering a high co-broke. This type of email is informative.
Street Smart ADDvantage™ Concept 1: It's may be better to raise the commission than to lower the sales price: If you are selling a $300,000 home, 1% of commission is $3,000. In a typical co-broke flat fee MLS listing, the seller offers 3%. When negotiating price with a buyer on a $300,000 home, a $5,000 price move between counters offers is realistic. $10,000 may be more realistic in some markets. The math: Raising commission 1% or $3,000 is less than a price drop of $5,000….so adding commission could be more lucrative than adjusting your sales price.
Street Smart ADDvantage™ Concept 2: Offering more commission to the agent/Realtor fee. They are positioned to offer the commission where it should be: to the agent who sells the property. Instead of paying 6% to a listing agent, half of which would be offered by the listing agent to a buyer's agent, sellers could theoretically list flat fee and then offer the entire 6% to the buyer's agent. If all things are equal and a Realtor® could only show one of two homes, it's logical that they would choose to show the one offering a higher commission. By using our Street Smart ADDvantage program, you’ll get our powerful a bi-monthly e-blast to the Realtors® within 35 miles of your property.
Street Smart ADDvantage™ Concept 3: Realtors® value their home sale more than yours. A recent study conducted using public recorded sales of nearly 100,000 houses in suburban Chicago showed that more than 3,000 of those houses were owned by realtors. Those agent owned homes sold for an average of 3% higher than the other “non-Realtor” owned homes which stayed on the market for an average of two additional weeks. Check out more on this at www.getmoreoffers.com/streethome.asp