Real estate broker Keith Gordon is the co-owner of Florida’s largest discount real estate brokerage firm, ADDvantage Real Estate Services. Keith and his partner, Erin Knorr, created GetMoreOffers.com (ADDvantage’s website) in 2005, with the belief that the traditional real estate commission model is flawed.
If you’re thinking about selling your New Tampa or Wesley Chapel home, you might consider the discount route via ADDvantage Real Estate Services and GetMoreOffers.com. The company’s hybrid-full-service “Professional ADDVantage” plan is just $499 up front, with only 3.25 percent of the sale going towards commission, which is about 46-percent cheaper than a traditional agent, says Gordon — who negotiates with buyers’ agents for you.
GetMoreOffers.com also features a popular “MLS (Multiple Listing Service) ADDVantage” plan, which costs just $299. With this MLS plan, there is no fee at closing and the seller is completely self-represented through all aspects of the listing, including negotiations, buyer vetting and all contract paperwork.
“We market for them extensively on the Internet just like any other agent and we still support them with our live phone service seven days per week,” Knorr explains. “But, the client doesn’t have representation.”
Keith and Erin’s intention was to build a “customer first” discount real estate brokerage and the company has grown to carry an average of more than 500 active listings state-wide, with sales of more 553 homes valued at more than $157 million in the past 12 months alone. Gordon and Knorr believe real estate should be more transactional, allowing sellers to gain more control while saving a considerable amount of money in commissions. But, at the same time, ADDvantage clients have access to experts who can navigate the selling process and net you the most possible.
“We sold more than 500 homes sold statewide during the past 12 months, 80 of which are here in the greater Tampa Bay area,” Keith says, “including 15 homes in the New Tampa and Wesley Chapel area.”
Erin adds, “Our services are discounted, but when it comes to marketing and service, we are exceptional. We have a social media director, web developers, professional listing administrators, professional team specialists and general office staff on hand to help our agents service our customers and prospects. We believe in seven-days-per-week live support.”
Keith says that right now, Wesley Chapel and New Tampa have a similar market strength to Westchase, stronger than Trinity, but not as strong as some parts of South Tampa. However, he says, both of our distribution areas currently have good market conditions for sellers.
“Our last large sale in Wesley Chapel sold in 35 days, at a sales price of $725,000 — a commission savings of $19,440 — and the appraisal came in $75,000 lower than the asking price,” Keith explains. “A combination of a strong market in Wesley Chapel and my appraisal shortfall skills were enough to convince the buyer to close at $725,000, despite the appraised value of only $650,000.”
He adds that, lately, he has been sending his customer base a weekly email encouraging sellers to be vigilant about price and to not hesitate to drop prices now, as opposed to later, if that fits their plan.
“Mortgage interest rates are artificially low and the stock market is sending a clear signal that the Fed will raise rates in the short term,” Keith explains. “The real estate market is already weak, prices in Tampa Bay have been trending down since August of 2013 (a possible short term top) and now there are signs of rates heading up.”
Will this hurt the market? The answer, he says, is yes for properties on the low-end, although not so much for those on the high-end. Short term though, he adds, “a bounce in (interest rates) should stimulate the market by motivating both buyers and sellers to get busy.” With his 30 years as a Broker, you can trust that Keith always knows how to properly analyze current real estate market conditions.
He adds that, “The factors currently influencing the economy are: strong industrial production numbers, an upward trend in wages (sorely needed in the U.S.) and an extremely bullish stock market. But, the backdrop is a weak real estate market. New home builders are now competing with existing homes for customers and there is no stopping large corporate home building corporations from chasing building profits. We know this from 2004-06.”
Gordon says that he thinks that there is a fundamental problem with the housing market. The top end is healthy, he explains, because the stock market has made many middle-to-upper-class Americans wealthy the past five years.
“These days, I find that selling a $600-800k home easier than a $150,000 home,” Gordon explains. “The $150k buyer is tough to get approved for financing, while the high-end buyer is generally well-qualified.”
ADDvantage and GetMoreOffers.com help sellers succeed in selling at any price. Gordon attributes this to his company’s comprehensive marketing and superior customer service.
Other factors may have an influence on the market health as well, Keith says. “Mortgage rules have made getting a loan more difficult than ever and the short sales of 2008-11 hurt the poor, not the rich. The low-end home buyer that sold their home short is now renting instead of building the next breeding ground for the $200-300k market. That is what is fundamentally wrong with our real estate market.”
Gordon adds that he also feels that the investor groups have once again affected the current state of the market.
“Greed strikes again, as hedge funds and Real Estate Investment Trusts (REITs) bought massive numbers of low-end ($220,000 range and under) three- and four-bedroom homes in the Tampa Bay area during the past four years,” he explains. “They took this irreplaceable inventory away from the low-end buyer, creating a larger gap in housing disparity. These corporations are now landlords extracting money from Tampa Bay and giving the revenues to shareholders. So, we lose!”
He adds, “Instead of the prices going down or staying low in 2011-13, allowing market conditions to balance and get the low-end buyers buying again, they just gave up and rented. These buyers were supposed to sell and buy again in 2016-20 to help fuel and support the market.”
So, What’s The Real Story With Zillow.com?
Gordon notes that many folks look to Zillow.com to find out a home’s value, but he says he believes that Zillow is misleading.
“I have been a Florida broker since 1984, licensed in Colorado and currently studying for my California brokerage license and I love the dynamics of real estate, but this Zillow phenomenon that sellers are enamored with amazes me,” he says. “No one should be. The listings on Zillow are based upon an algorithm that doesn’t take into consideration what actually makes one home worth more than another.”
On track to sell more than 600 homes this year through GetMoreOffers.com, Gordon says, “I personally negotiate more than 250 of the transactions each year and can say, without any doubt, that most buyers never bring up Zillow, just my sellers. I tell my buyers to pay no attention to Zillow. The homes that have views and great kitchens that are located in the best school zones sell the fastest and for the most money, regardless of their ‘Zestimate!’”
ADDvantage Real Estate Services is located in downtown St. Pete (2515 1st Ave N). ADDvantage also is affiliated with Frontier National Title. GetMoreOffers/ADDvantage can be reached at (727) 942-2929 or by visiting GetMoreOffers.com.
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