Considering flat fee listing in the MLS? Should flat fee MLS sellers in Miami, Tampa, Orlando and Jacksonville get contract representation?

I am Keith Gordon, the broker for ADDvantage Real Estate Services, a Florida flat fee MLS listing service. I negotiate all offers for our flat fee sellers that opt into our concierge contract representation flat fee program called ADDvantage Plus™. We are direct members of over 20 MLS boards in Florida including NEFAR (Jacksonville), SE Florida Regional MLS (Miami, Miami-Dade, Broward), Mid-Florida Regional MLS (Orlando /Orange County) through GTAR (Greater Tampa Bay Association of Realtors) and many others. While I am a flat fee MLS broker, we also have full-service listings and semi-full-service (ADDvantage Plus™) MLS listing programs. I respect full service agents and un-represented sellers as well.

This blog is about (contract) "representation" and what it does for sellers, regardless of whether they are represented by ADDvantage or any other full service real estate company.

I believe full service listings are beneficial in many cases, especially when the agent really has something to offer to the seller. Many sellers do not need the agent to show. If this is the case, then what do they need from this agent? The answer is "representation." 98% of all Florida home sellers would be better off using a 3rd party (agent) to represent them. I have known many flat fee or self-represented sellers that decided to “go it alone” and were at a big disadvantage when they negotiated for themselves against a skilled buyer's agent.

The 3 biggest reasons to get contract representation: 

1. Sellers need distance from the deal

Without a 3^rd party negotiator, there is not enough cushioning between the seller and the buyer's agent. What I mean here is that when flat fee seller counters an offer, the buyer's agent hears too much information about why, when and where. This information may seem harmless to the unrepresented seller but what is really happening is the buyer's agent will hear everything that is said-even the little nuances and use this information against the seller.

2. Professional negotiators know when to hold them and when to fold them

Whether you use our ADDvantage Plus™, our flat fee MLS contract representation program ($799 plus $150 at close) or a full service agent at 6%, representation can get you a higher deal. The reason is simple: if the agent representing you is a savvy negotiator, the buyer's agent will not be able to manipulate the deal so that the buyer gets the better end of the bargain. If the buyer's agent works directly with the seller, too many unknown variables can hurt the unrepresented seller including re-negotiating the inspection report; countering too slowly or too aggressively or giving in when the seller should hold their ground.  An experienced negotiator contributes significantly in this area by knowing when to be firm and when to compromise.

3. Sellers might miss important cues

Un-represented sellers may not know how to extract answers from the buyer's agent about their buyer. A skilled negotiator will ask the buyer's agent questions and pick up on hints about the strengths and weaknesses of the buyer. These clues will help determine where to counter.

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