The “price” game and how to play it so your flat fee MLS listing in Florida gets sold

Tuesday, August 18, 2009, 3:16PM

By: Keith Gordon

The “price” game and how to play it so your flat fee MLS listing in Florida gets sold

Florida has $50,000 homes in Pasco County and $15,000,000 homes in Miami neighborhoods of Coral Gables, Coconut Grove, Star Island, Hibiscus, Fisher and other areas in Florida’s diverse real estate market.

My advice on how to price your Florida home may be interpreted differently depending on the price of your home. But, for this article, I’ll assume we are talking about homes that are $2,000,000 on down.

I know my price theory works because I have helped 100’s of Florida sellers get their properties sold even in this challenging market. I work with Realtors every day in Miami, Tampa, Daytona, Tallahassee, Jacksonville and just about every city in Florida. I understand their motivations.

The premise that I use in this buyer’s market is that buyers are only willing to pay market prices or slightly less than market prices to compensate them for the next drop in price even though prices in Florida seem to have stabilized.

Sellers, on the other hand, are only willing to sell if they get a price that they feel is not giving their property away or have other restraints such as mortgage balances!

Here’s the quagmire as I see it. How do you get the buyers and their Realtors to offer you a fair price? My suggestion is assume for a moment that you are negotiating with a cash buyer. After a few counters, what price would be your bottom line?

Even if you do your best to arrive at a firm bottom line price, often there will remain a gap between you and the buyer. This is the gap where buyers often will not travel to because they think they are paying too much and sellers think at that price they are giving way their home. So, what’s the answer?

The answer comes in two parts. First, get the Realtors competing against one another to be the first one to sell your home and earn the offered commission. It is always about the money! The way I do this is make your home attractive by listing it at the lowest price possible right from the start. Leave no room to negotiate and wait on a smart Realtor or buyer to bring you a full-price offer or very close to it.

This pricing strategy will create excitement and hopefully close that price gap. This strategy will encourage real buyers and Realtors to engage you with a serious or hopefully a full-price offer.

Second, if you decide to list your home flat fee in the MLS in Florida with us, consider our ADDvantage Success™ hybrid flat fee MLS listing plan that is just like a full-service listing. This plan allows me to help you navigate better with the Realtors and I negotiate all offers for you as well. I talk with each Realtor before they show your home and guide them (actually coach them) as much as possible to bring a full-price offer. Realtors often call before showing a home and request this kind of guidance anyway. It is my pleasure to assist!

By pricing your home this way, Realtors have extra motivation to be the lucky one and earn the offered commission.

Call me any time and I will discuss how to best price your Florida home.