Could a Flat Fee MLS Florida listing service, ADDvantage, be affecting the Florida market?

Wednesday, June 25, 2008, 7:31PM

By: Keith Gordon

Why would a full service RE/MAX agent send a Florida flat fee MLS broker a message like this:

“Good Morning Keith

I wanted to let you know, due to your recent sales activity in the area, that I have reduced the price on (property address)…”

The flat fee listing of ours that prompted this agent to lower his listing price did not sell in a short-sale or similar situation. It was just aggressively priced to sell.

I will address a commonly posed question by our flat rate listing sellers:
How to price a Florida home in today's buyer's market.

5 Points to Consider when Pricing a Florida Home:

  1. Buyers rule price- to a point. Because buyers have the upper hand in Florida, they are driving prices lower with their constant offers that are lower than sellers' listed prices. This wears down sellers and the buyer's agents.
  2. Homes that are priced near 2004 price levels will get the most offers.
  3. It is a better pricing strategy to list your Florida home within 2% of your bottom line and leave little room to negotiate.
  4. The price your neighbor has listed their home for sale has nothing to do with reality or should I say “Realty.” They may be priced at 2005 levels because they bought near the top of the market. Attempt to establish a list price near 2004 levels and disregard the neighbors.
  5. Do not pay attention to what builders are offering as incentives or what the latest bad news is from in the press. Do not offer incentives such as closing costs, pre-pay homeowners association fees or insurance premiums. The reason is Realtors control 85% of the buyers and they will write their offer reflecting the needs of their buyer client regardless of what you offer in your listing. Offering incentives in your listing lessens your ability to successfully negotiate an offer.