Flat Fee MLS Listing in Florida Just Got a Promotion

Flat fee MLS sellers in Miami, Tampa, Orlando, Jacksonville, Sarasota and every Florida city in between can finally match the “full service” listings, resulting in more showings and sales. ADDvantage Plus™ gives sellers full contract representation while maintaining all the benefits of “For Sale by Owner.” Sellers keep control over their listings but get expert support, all for a low flat fee.

In a traditional real estate listing arrangement with a Realtor, the listing agent typically pockets a listing commission regardless of where the buyer came from. Even if the seller’s next door neighbor walks over and says, ”My daughter wants to buy your house,” the Realtor walks away with the listing commission.

With ADDvantage Plus™ sellers get 100% contract representation plus comprehensive Internet marketing on their local Florida MLS, Realtor.com “Showcase,” Homes.com, Worldproperties.com, yahoo classifieds, craigslist.com, StreetSmartListings.com, getmoreoffers.com and many more real estate sites. Plus, sellers never pay a listing commission and retain the right to sell the property to an unrepresented buyer which means they would pay no commission at all.

“FSBOs” who choose to list For Sale By Owner with flat fee MLS Florida receive the same advertising exposure as a Realtor but pay half the commission because they pay commission only to the buyer’s agent. (There is no listing commission.) The problem to date with FSBOs paying a flat fee for MLS listing services is that sellers are left to fend for themselves regarding other aspects of making a sale, such as contract negotiations. That often costs them the sale because closing a deal can be as difficult as generating one.

An Exclusive Agency (limited service) listing can be identified by Realtors as a “FSBO” or flat fee listing. And in spite of the fact that the Realtor would still pocket half the commission as the buyer’s agent, some Realtors won’t work with flat fee sellers. Some simply shun the listing because they say it’s bad for the industry (they feel this threatens their 6-7% old school commissions). In contrast, Realtors will see the ADDvantage Plus™ Exclusive Right of Sale listing just like other full service listings in the Multiple Listing Service.

ADDvantage Plus™ equips clients with unlimited contract representation for 12 months. Additionally, sellers are given an Exclusive Right of Sale Listing, as opposed to the usual Exclusive Agency (limited service) listing that most other flat fee Florida MLS listing services use. This nuance is important. Why?

ADDvantage Plus™ also comes with Agent Assure®, ADDvantage’s unparalleled phone support service, available from 8am to 8pm every day. Like a seller’s private answering service, Agent Assure®, gives sellers piece of mind that no call will be missed from prospective buyers or Realtors. The MLS and other ads display ADDvantage’s number rather then the seller’s and ADDvantage® acts as the liaison for scheduling showings. Through the exclusive Lead Capture system, ADDvantage® forwards all buyer leads to sellers in real time via email.

Coupled with Street Smart ADDvantage Realtor Eblast marketing program (included when a seller offers 4% or higher buyer’s agent commission), “Plus” sellers gain extra attention without waving a red flag that they are flat fee listed. Street Smart ADDvantage® Eblast is Florida’s most well recognized Realtor® to Realtor® bi-monthly email. “Properties in the Eblast get shown by more Realtors,” says Keith Gordon, broker for ADDvantage®.

Also included with ADDvantage Plus™ is ADDvantage’s customized metal sign, providing a professional image that will gain the respect of real estate agents and buyers alike.

ADDvantage®, Florida’s trusted flat fee Realtor® based in Tampa Bay, Florida, is excited about its pioneering program. “Over the years, we have listened carefully to our clients throughout Florida,” says Keith. The feedback from flat fee MLS sellers in Orlando, Miami, Sarasota, Tampa and Jacksonville revealed that they have lost potential showings or sales for three reasons:

1) The buyer or Realtor® preferred working with a professional Realtor® and not directly with an “unrepresented” seller;
2) The unrepresented seller blew a deal because they really weren’t experienced in contract negotiations;
3) The unrepresented seller wasn’t available by phone and missed an opportunity for a showing.

Explains ADDvantage Broker, Keith R. Gordon, “For these reasons, we developed a new flat fee MLS service for Florida sellers to prevent lost showings and to provide a seamless process for Realtors® and buyers.”
In keeping with ADDvantage’s advocacy for sellers’ rights, there are no cancellation fees or strings attached… whatsoever. Sellers simply receive dedicated support from a company who bases its success on the success of its clients.

How To Help Your FSBO Set The Right Price For Their House

Of all the problems our FSBO will encounter, pricing their house correctly and accurately is by far the most crucial. The wrong price could cost them thousands of dollars any way you look at it.

Here’s why: A price that is “too low” will result in a “net” that is thousands less than they could have gotten with a little research. A price that is “too high” will cause the house to stay on the market for a longer period of time and quite possibly…never sell!

Not selling means paying more mortgage payments, taxes and, insurance until the FSBO lowers the asking price to what the market may have supported in the first place. In addition, if the house sits on the market for too long it will get “Shopworn”. The FSBO will get discouraged and think about giving up altogether.

You’ve probably already been confronted with some of these classic FSBO pricing philosophies:

1. What their neighbor “told them” he paid for his house. People tend to exaggerate when they are talking about what a “deal” they got. It makes them feel better…but honestly, misinformation doesn’t help price a house.

2. What they paid for the house originally plus some magical percentage they read about in the local newspaper. The price could be higher or lower depending on what the market is doing.

3. What other houses in their neighborhood are currently “sitting” on the market for. A lot of other houses sit on the market because their asking price is too high or there is some other problem that is preventing the sale. Asking prices and getting prices are two separate things.

4. What they “need” because of some personal circumstances. Buyers don’t care about what a FSBO “needs” to get out of the deal. They will only pay what the property is worth to them.

5. What their “Tax Assessment” shows, plus some “rule of thumb” percentage. Tax Assessments are much different than true “market value” of a house. Don’t even let your FSBO go there.

6. A CMA (Comparative Market Analysis) prepared by Aunt Martha who is a Realtor/Agent. Yes, this is the best method on our list thus far. But today, CMA’s are expressed in “price ranges” and not absolutes. Providing an estimated price of plus or minus 10% just isn’t good enough for your FSBO.

The sale prices that are recorded are the prices the local real estate market will bear in connection with this house. There is no other reliable benchmark with which to base a good pricing decision.

As Mortgage Professionals, we all know the only way to determine the correct price for a house is what comparable houses have recently sold for and been recorded for. (i.e., houses nearby and similar to this one that have recorded sales prices at the courthouse).

That’s it…end of story! No magic answers, and no exceptions to the rule. The price that your FSBO will receive for his/her house is going to be about what others have gotten in the recent past for similar properties. Without a doubt, a full blown appraisal done by a Certified Real Estate Appraiser is the best way for arriving at a price to sell your house.

A full appraisal involves a property inspection by the appraiser. He will look for defects and benefits and will complete written report with pictures of your house and the houses used as comparisons.

Here are a few advantages to your FSBO of using an appraisal:

1. Buyers will feel more assurance that they are not paying too much for the house if they decide to buy. Often, buyers get “Buyer’s Remorse” because they feel there are still some unknown variables in the transaction.

2. They have irrefutable evidence as to how they arrived at their price. They have in their hands a written appraisal complete with pictures, measurements, and, information on their house and on comparable sales.

The FSBO will have this report to show everyone who comes to look at your house. Every buyer will see in black and white the appraised value of the house as arrived at by a professional appraiser.

The number one concern a buyer has, other than the structural soundness of the house, is that they are paying too much for the house and being ripped off. Having an appraisal helps set their minds at ease and makes negotiations easier on everyone.

3. A written appraisal gives the FSBO some piece of mind and assurance that their asking price for the house is right where it should be. Now they have the facts when they are faced with a “Bargain Hunter” who is trying to steal their house at the lowest possible price and at the most favorable terms for himself.

OK…As a Mortgage Professional, here’s your opportunity to step-up to the plate and help your FSBO with the pricing of their house. The following may help you…

Since this is less than a full appraisal he will do these for me all day long (and very quickly) for a heavily discounted rate that we previously negotiated. When the house sells and I originate the mortgage, Bill knows I will use him for the “buyers” full appraisal. Bill then charges his normal everyday full price.

For many years I have had an agreement with Bill that does a lot of appraisals for me. When my FSBO agrees, I have Bill do an abbreviated appraisal to set the value of the property and to give the owner documentation that shows that value.

So, the result is this…Bill gets additional business…I get fast response so that I can quickly help set the selling price of the FSBO property and impress the FSBO…and, the FSBO gets to sleep well at night knowing that their asking price is totally accurate. This is a win-win-win situation for everyone!

Establishing yourself as a FSBO expert and profiting from it, is not difficult to do. By solving and working through the problems that all FSBOs experience is an important first step. Providing good advice and solutions to those problems and then presenting your information, sets you apart from the majority of mortgage folks.

By helping a FSBO succeed you also help yourself and definitely help fill your Mortgage Pipeline.

Internet is Key to Home Sales

Just about everything is online these days. You don’t even need to leave your house to go grocery shopping, schedule appointments, apply for job, buy a car and much more.

Now, Web is becoming key part of home sales. Buyers are looking 24 hours a day for properties information online. Buyers save both time and money finding their new home through the Internet. It is better than going blind sighted to see listing per listing. Plus, viewing houses on the Internet saves out-of-town buyers a trip.

Use of the Internet to search for homes has risen significantly from an estimated 2 percent of homebuyers in 1995 to 77 percent in 2005, according to a 2005 study by the National Association of Realtors.

Of the 7,800 people who responded to the study, about 24 percent of the home buyers indicated they used the Internet to learn about the home they just purchased, up from 15 percent in 2004 and 2 percent in 1997. Nine out of 10 home buyers used a real estate agent in the search process and at least 36 percent say they first learned about the home they purchased from a real estate agent.

There IS a growing number of homebuyers who are using the Internet to find their next home� - a trend that continues despite concerns among some in the real estate field that the Internet could prove detrimental to the industry in the long run.

The average homebuyer is in his or her mid-30s and is considered technologically savvy. Numbers show an estimated 80 percent of the homebuyers do research on the Internet first before contacting a professional, she said.

“Technology has certainly had an impact,” admits Mike C., a Florida based real estate agent. “Most buyers seek properties on the Internet before they contact us.”

FSBO Marketing in Europe has Arrived

Programming will be aired on Visitors Network, ItsMyFaith, IndiePix, Hip Hop and the Comedy & Games channels. Those channels will air in Germany, France, Sweden, Austria, Luxembourg, Liechtenstein, the Alto Adige region of Italy, Serbia, Montenegro, Bosnia Herzegovina and Croatia with other European markets following in Q2 - 2008.

“We believe the level of interest in the European market place will be huge on two levels. Europeans have a curiosity in viewing the American life style, architecture and design. More importantly, the strength of the Euro has created an unprecedented investment opportunity; current exchange rates are basically allowing for a 50% discount when acquiring US property.” stated John Giaimo, President SearchHomesOnTVsm.

United States programming on DirecTV and syndication throughout Europe will increase the SearchHomesOnTVsm “world wide” exposure to well over 145 million households. All shows will be broadcast in English with Multilanguage subtitles added.

SearchHomesOnTV.com is offering promotional pricing that includes the broadcasting of a 40 second commercial of a home for two weeks in the US and European markets for $149.00 (this is a limited time offer providing a $250 discount).