Selling 1st flip: what should I expect from a "great" realtor?

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Selling 1st flip: what should I expect from a "great" realtor?

Ilya Z.
Rockville, MD · Member since 2017 · 74 posts · 13 votes
We're trying to sell our first flip near Hagerstown, MD. The whole project, which we started back in September, has been a huge learning experience for us, as expected. Unfortunately, the selling part is not going so well and we will probably end up losing money on the whole deal. We put it on the market in mid-January and have had close to 20 showings but just a handful of people still interested afterwards and no offers. We're getting antsy since we're bleeding money on the borrowed money we used to finance the project, paying utilities, insurance etc etc.

My main question is, though, what our expectations of the seller agent should be. To me the difference between a great one and a not so great one are:
1. PRICE: They can set the initial price right and provide the seller with a fairly precise estimate of how much we can sell it for, and can be fairly assertive when discussing with the seller the listing price
2. MARKETING: They can market the property creatively to the types of people who might be interested in a house like ours
3. SALES: Once someone shows interest but hesitates, they can convince them to submit an offer

Of course, once there is a potential buyer, they need to be vetted and then there is a process of completing the sale that has to be done right. But our feeling is that our agent has not done such a stellar job on the first 3 items, even though she's supposedly a top agent in the area.

We probably set the initial price too high because we wanted to recoup the costs of the rehab that, as if often happens, ended up being a lot more expensive that we originally thought. But we were looking to her for guidance on what's right. Now she's telling us that the price was too high and, even though we lowered it twice, we lost valuable time. Also, our followups to showings where people seem to be interested is fairly short: we answer their questions right away and in detail, then there's silence and when we ask our agent for a status update, she either says they are no longer interested or that they are still thinking. In which case our next questions is, what else we could do to help the other side produce an offer, and her answer is "You can't force anyone to buy a house". Well, yeah, I know that, but when I shop for a car, I can go to 5 dealerships and walk out of 4 of them and then go to the 5th one and buy the same exact car I looked at at the other places. And this is not because they forced me to, it's because they negotiated with me and convinced me that it was a good deal. Buying a house is not the same but to me being a good salesperson is one of the main characteristics of a great seller agent.

It's getting warmer now so people are coming out of winter hibernation, and we're hoping for a lot more traffic. If the house still does not sell soon, one option would be to change agents. But then we need to assess other agents to make sure we're actually getting someone better. So hopefully any words of wisdom you can provide here could help us with this. Thanks!
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Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
6y

That is a really great question and, believe it or not, I have found that it’s what the agent brings to the table from before you even purchase the property to rehab that makes them valuable. Here’s our interesting story of real estate agents.

Finding the right realtor proved to be a challenge for us as well. When Castle Rock first started, I quickly realized that the realtors that we were using simply slapped our listing on the MLS, put a lock box on the house, and showed up at the closing to collect their check. What really got my goat was when I saw that the realtors were making more money on our projects than I was.

Enter my wife. Her degree was actually in Interior Design. For those of you that are unfamiliar with the term Interior Designer, that term contrasts with the term Interior Decorator in that a real designer has a formal education in the field. It’s more than just picking paint colors. It’s moving walls, knowing codes, and building a cohesive plan for a renovation or construction project. She joined our company and took over running our construction crews. She was an integral part of the purchase in that she helped us envision what a dilapidated property could become. She worked with the GCs in making the property look amazing while controlling costs. When it became evident that she was the real driver of buyers to the property, I suggested she get her real estate license and take over selling our properties. It was a move that has paid massive dividends.

She’s actually branched out with an equity partner she knew from childhood to create a successful home renovation and flipping business in the Tampa Bay market. The partner was one of her real estate sales clients that wanted to become an investor. After three years of doing this, they now have $10 million in lines to flip or rent homes.

It has been my experience that most realtors bring little value to the table. What Christine was able to do was to work with the investor on the buy side to not only identify properties for purchase, but review properties that were presented by wholesalers in order to ensure that the investor’s minimum return was likely. She worked with the General Contractors to help choose finishes and control costs. When she listed the properties, she brought in a professional photographer and had the properties staged in a way that attracted buyers. She was also very accessible to her good clients and took calls on a Sunday night at 10pm. She is very rare and she has been integral to the success of Castle Rock as well as those other clients she has cultivated.

You might not find an agent with a background like Christine's, but you need to make sure that the agent is bringing something of value to the table other than slapping it up on the MLS. That's what most agents do and that's why most agents fail within the first couple of years.

Real estate listing presentations can be filled with flashy promises of some new way to market a property. In reality, all agents market properties in pretty much the same way. It’s really what the agent brings to the table throughout the entire process that makes them valuable. Good luck with your investment business. I wish you well.

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  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    6y

    That is a really great question and, believe it or not, I have found that it’s what the agent brings to the table from before you even purchase the property to rehab that makes them valuable. Here’s our interesting story of real estate agents.

    Finding the right realtor proved to be a challenge for us as well. When Castle Rock first started, I quickly realized that the realtors that we were using simply slapped our listing on the MLS, put a lock box on the house, and showed up at the closing to collect their check. What really got my goat was when I saw that the realtors were making more money on our projects than I was.

    Enter my wife. Her degree was actually in Interior Design. For those of you that are unfamiliar with the term Interior Designer, that term contrasts with the term Interior Decorator in that a real designer has a formal education in the field. It’s more than just picking paint colors. It’s moving walls, knowing codes, and building a cohesive plan for a renovation or construction project. She joined our company and took over running our construction crews. She was an integral part of the purchase in that she helped us envision what a dilapidated property could become. She worked with the GCs in making the property look amazing while controlling costs. When it became evident that she was the real driver of buyers to the property, I suggested she get her real estate license and take over selling our properties. It was a move that has paid massive dividends.

    She’s actually branched out with an equity partner she knew from childhood to create a successful home renovation and flipping business in the Tampa Bay market. The partner was one of her real estate sales clients that wanted to become an investor. After three years of doing this, they now have $10 million in lines to flip or rent homes.

    It has been my experience that most realtors bring little value to the table. What Christine was able to do was to work with the investor on the buy side to not only identify properties for purchase, but review properties that were presented by wholesalers in order to ensure that the investor’s minimum return was likely. She worked with the General Contractors to help choose finishes and control costs. When she listed the properties, she brought in a professional photographer and had the properties staged in a way that attracted buyers. She was also very accessible to her good clients and took calls on a Sunday night at 10pm. She is very rare and she has been integral to the success of Castle Rock as well as those other clients she has cultivated.

    You might not find an agent with a background like Christine's, but you need to make sure that the agent is bringing something of value to the table other than slapping it up on the MLS. That's what most agents do and that's why most agents fail within the first couple of years.

    Real estate listing presentations can be filled with flashy promises of some new way to market a property. In reality, all agents market properties in pretty much the same way. It’s really what the agent brings to the table throughout the entire process that makes them valuable. Good luck with your investment business. I wish you well.

    6Reply
  • Ilya Z.
    OP
    Rockville, MD · Member since 2017 · 74 posts · 13 votes
    6y

    Thanks @Doug Smith. You make a great point about a good agent being involved from before we buy. In fact, our current agent found and sold this house to us as an off-market deal. Now she seems to be back-paddling on some of the claims she made then about ARV and how fast we would be able to sell it.

    But what questions should we be asking other agents that we might want to hire as her replacement? It seems that there is a very limited number of well-known places for online marketing (MLS etc, Craigslist, Facebook, Instagram) so, aside from advertising on the Dark Web somewhere :-) , one's personal connections is the main way to bring additional buyer leads. Also, quick and detailed communication (like your wife's Sunday calls). But what else?

    0Reply
  • Greg Morris
    Flipper/Rehabber · Spanish Fort, Ala · Member since 2019 · 97 posts · 88 votes
    6y

    I'm sure she is doing the best she can. If l may suggest a few things that might be of help. Offer a $1000 bonus to the realtor (a tip as it were which has to be paid through their broker) for finding a buyer within next 30 days of date posted and closing the deal You can print up the offer, the address, your contact number drop it off at each real estate office and have them post it where the realitors can read it and know about the offer. Your agent will still get her commission or she may have to share with another agent. But you can give the tip to whoever actually sales the property after the sale. Secondly take a video of your property. Do a walk through detailing what was done and how nice it is. Post it on YouTube and offer it to agents to post on their private websites. You only need one copy when the agent request a copy just copy one off. Mention it on your posting you have a walk through copy available. Have open an house on the weekend on a nice day. 

    1Reply
  • Bill Kenny
    Lender · Martinsburg, WV · Member since 2013 · 171 posts · 93 votes
    6y

    Hey Ilya, Sounds like you made the fatal mistake of over pricing the property and now you lost the initiative. If you haven't received any offers in this market then you are still overpriced. I would bet your getting adequate marketing. In this market, if the property is presented well and priced right you should receive offers. Your only issue could be if the sales price is over 400K as the average sales price in Washington County of 200K. If you have a property that is in a hight price point that matches the buyers of the market then if will take longer than average. I would recommend you drop the price to the market price, sell it and move on. You are either winning or learning. In this case sounds like you are learning good lessons. 

    2Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Ilya Z.:
    We're trying to sell our first flip near Hagerstown, MD. The whole project, which we started back in September, has been a huge learning experience for us, as expected. Unfortunately, the selling part is not going so well and we will probably end up losing money on the whole deal. We put it on the market in mid-January and have had close to 20 showings but just a handful of people still interested afterwards and no offers. We're getting antsy since we're bleeding money on the borrowed money we used to finance the project, paying utilities, insurance etc etc.

    My main question is, though, what our expectations of the seller agent should be. To me the difference between a great one and a not so great one are:
    1. PRICE: They can set the initial price right and provide the seller with a fairly precise estimate of how much we can sell it for, and can be fairly assertive when discussing with the seller the listing price
    2. MARKETING: They can market the property creatively to the types of people who might be interested in a house like ours
    3. SALES: Once someone shows interest but hesitates, they can convince them to submit an offer

    Of course, once there is a potential buyer, they need to be vetted and then there is a process of completing the sale that has to be done right. But our feeling is that our agent has not done such a stellar job on the first 3 items, even though she's supposedly a top agent in the area.

    We probably set the initial price too high because we wanted to recoup the costs of the rehab that, as if often happens, ended up being a lot more expensive that we originally thought. But we were looking to her for guidance on what's right. Now she's telling us that the price was too high and, even though we lowered it twice, we lost valuable time. Also, our followups to showings where people seem to be interested is fairly short: we answer their questions right away and in detail, then there's silence and when we ask our agent for a status update, she either says they are no longer interested or that they are still thinking. In which case our next questions is, what else we could do to help the other side produce an offer, and her answer is "You can't force anyone to buy a house". Well, yeah, I know that, but when I shop for a car, I can go to 5 dealerships and walk out of 4 of them and then go to the 5th one and buy the same exact car I looked at at the other places. And this is not because they forced me to, it's because they negotiated with me and convinced me that it was a good deal. Buying a house is not the same but to me being a good salesperson is one of the main characteristics of a great seller agent.

    It's getting warmer now so people are coming out of winter hibernation, and we're hoping for a lot more traffic. If the house still does not sell soon, one option would be to change agents. But then we need to assess other agents to make sure we're actually getting someone better. So hopefully any words of wisdom you can provide here could help us with this. Thanks!

     There isn't a magic line you can tell buyers who saw your house thought about it and ultimately decided not to make an offer. The only thing you can do is lower your price.

    0Reply
  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    6y

    @Ilya Z., I suspect we both think that the agent made big promises to get the sale...even if it was unintentional. I also suspect the short-term financing/hard money loan is eating your cash up with each passing day. You may have to either keep dropping price or convert your financing, if possible, to a more loan-term, lower-rate typed of financing in order to stop the bleeding. You may have to even rent it for the time being to cover the debt service until you can find a buyer. 

    I wish I had someone in MD to refer you to, but I don't. I would ask questions such as "tell me other investors you worked with" "Tell me about a deal that went bad." "Tell me about a time when you disagreed with a client." "Tell me about a time when a client fired you." In an agent, I want someone that speaks truth to power. In that I mean you want someone with experience that tells you the truth...not what you want to hear...regardless of whether or not they think they will lose your business because they disagree with you. You definitely don't want a "yes-person." You want someone that is on your team and that will tell you when they don't think a deal is a good investment. Also, make sure that when you find a good agent, you appreciate their advice and you don't dump them to go off and work with someone that will tell you what you want to hear. It's a great sign when an agent tries to talk you out of a deal that would make them money. I suspect your agent might have needed the sale and told you what you wanted to hear. 

    I wish I could give you better advice that would miraculously save your deal. You might still be able to salvage at least a break-even if not a profit, but you'll need to bring it all to a head sooner rather than later. Good luck. 

    1Reply
  • Ilya Z.
    OP
    Rockville, MD · Member since 2017 · 74 posts · 13 votes
    6y

    Thanks @Greg Morris. We'll probably start with lowering the price but if that does not help, may try the bonus route.

    0Reply
  • Ilya Z.
    OP
    Rockville, MD · Member since 2017 · 74 posts · 13 votes
    6y

    Thanks @Doug Smith. Great questions. I also liked your comment about truth to power. And I definitely do want to build great REI business relationships in the area, although I suspect I won't be doing flips for some time. :-)

    0Reply
  • Robert Yarnell
    Chatsworth, NJ · Member since 2019 · 10 posts · 3 votes
    6y

    @Ilya Z. have you all considered renting the property?

    1Reply
  • Ilya Z.
    OP
    Rockville, MD · Member since 2017 · 74 posts · 13 votes
    6y

    Yes. Renting long term is not an option, maybe R2O. Would much rather sell it now

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    I would make sure its staged well, has excellent pics and is priced right. 

    Maybe pull the listing for a week then relist so it pops up as new ? Spring is coming and people will be buying soon!

    0Reply
  • Ilya Z.
    OP
    Rockville, MD · Member since 2017 · 74 posts · 13 votes
    6y

    @Mary Mitchell it's staged quite well, a lot of people commented on it.

    If I understand correctly in order for a listing to appear new you have to pull it for at least 60 days. We thought about it but the timing is bad.

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    Changing agents will relist it as new so that might be a reason to switch. But the biggest factor is price. 

    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    6y

    Let me pose this thread a different way:  I do you "want" from a "great" Realtor?  

    Aside from the broker talk, "homes really sell homes." At least on the East Coast, every home is unique and presents their own "challenges." Similiar to Thomas Edison and the invention of the light bulb, you just need that one buyer to come along that wants to buy your property. I'm sure every market is slightly different, but once a listing is put on the MLS, its automatically marketed out to Zillow/Trulia, Redfin, etc. If the Realtor is a "great" salesperson, then pretty much "Everybody" calls them slimy because they convinced a buyer to buy a home that they really didn't want, or at least not at the price they would have wanted it if they realized everything.

    To make a comment on price...  What is your carrying cost monthly?  Lets say for sake of argument it is $1k a month.  Is it worth it for you to lower your price $10k to sell in 2 weeks or stay where you are at and maybe sell in 3 months, or 6 months?  Hmmmm....  Only you can really answer that since it depends on your goals / business plan.

    If you are investing in residential properties, then more than likely you are working with a Realtor, a member of the National Association of Realtors.  While you maybe skeptical about the application / execution of the Realtor Code of Ethics, at least is applies.

    While agents love to "double end" a deal, many times other agents bring the buyer. Thats the point of broker cooperation, the MLS', etc.

    For some, a "great" Realtor is one who provides value by helping to vet incoming offers, taking care of inspections, helping with negotiations (depending on whether you use attorneys, sometimes the realtor provides another helpful line of communication), and being an experienced guide to a real estate transactions.  That being said, if you are an investor or an investor with a real estate license, then perhaps you don't need a real estate agent.  Pick any profession, and you will find crappy practitioners.  I don't dispute that.  Additionally, real estate sales generally has a pretty low barrier to entry and for residential sales is geared towards your "average" home buyer.  Investors have different requirements/needs.  Does it benefit you to find a "compatible" Realtor to handle the sometimes time consuming tasks to get a transaction done, or you spend time doing it yourself with your own license?  Is your business where you are the jack-of-all-trades?

    Good luck

    0Reply
  • Derek Hamilton
    New York, NY · Member since 2020 · 54 posts · 14 votes
    6y

    To the original poster. In my experience as a former agent. Open houses worked better than private showings. Ads in local papers and doing open houses for agents. Every time I’ve done that I got an offer.

    0Reply
  • Derek Hamilton
    New York, NY · Member since 2020 · 54 posts · 14 votes
    6y

    @Ilya Z. Make sure a professional takes some good pics, have a Agent open house where they could also bring clients. Make sure the open house includes refreshments etc.. and it’s in the advertisement description. You’ll get some agents there just for the refreshments but they could give advice on what would make the property sale.

    0Reply
  • Bryan Scott
    Investor · Castle Rock, CO · Member since 2011 · 107 posts · 65 votes
    6y

    @Ilya Z. According to NAR, Open Houses (for buyers) sell approximately 6% of homes that conduct them.

    So far as Open Houses for Brokers, I agree with @Derek Hamilton, but with a twist - only if the property is more "one-off" in terms of design or style typical to your area.  You do this to showcase features not easily seen in still photos.  Otherwise, my opinion about Opens is that they are a waste of time and money except for mining new buyer leads, or talking to the neighbors in the immediate area, whom are mostly just curious, but who may also become good leads down the road for your agent.

    Assuming you have done a great rehab, are you maximizing exposure by using professional photos, 3D tour and floor plans? Have you done a great job demonstrating livability and sense of community via MLS public remarks and other advertising (such as a single-property website and social media; Facebook, Twitter, Instagram, YouTube, LinkedIn)? Do you have the listing shown everywhere (via MLS and syndication)? Do you have the property priced at true, researched, market value, or did you start at "Cost + Desired Profit = List Price?"

    As a last question:  When your agent listed the property, did you agree with their market value assessment?  If not, why not and what is your agent doing to resolve the issue now?

    Your market appears to be a seller's market, however, your price point appears to be well above the average home value.  This said, what are the market conditions in your price point?  How does your property compare to this and have you thoroughly discussed this with your agent?

    I know you are feeling the pressure, but selling real estate is not dissimilar from baking a really good chocolate cookie -- you follow the recipe and it happens.  Don't and it fails.

    2Reply
  • Roni E.Pro Member
    Specialist · Earth 2.0 · Member since 2019 · 598 posts · 271 votes
    6y

    Hello, somewhat close to you located in Northern VA. What I would do and hopefully your agent did what was the issue for folks e.g. the 20 people. If she did not call I would call them and in less 7 minutes should be able to get some information. I would also ask your agent what is currently on the market that is a competitor and even not a competitor to have some outliers. Then walk the competitors and that will give you sense of the market. Next I would look what was the issue with this deal was it overpaid for the deal, underestimated constructions or what as not to repeat this. Have you run the numbers as a rental as maybe an investor at a local meetups might buy if numbers strong as a rental. I consider Hagerstown as a value buy area. After walking the properties that are competitors and price, see what range is correct and make a decision from there. Also as your agent now making double commission as helped you buy and sell usually try to lower commission rate as way to say thanks. I did on the commercial side so I know some residential agent do not like to cut thier rate. I think a bonus will not help, thier must be an issue either with price or location. What is the agent opinion of issue? I would do another brokers open.

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Bryan Scott:

    @Ilya Z. According to NAR, Open Houses (for buyers) sell approximately 6% of homes that conduct them.

    So far as Open Houses for Brokers, I agree with @Derek Hamilton, but with a twist - only if the property is more "one-off" in terms of design or style typical to your area.  You do this to showcase features not easily seen in still photos.  Otherwise, my opinion about Opens is that they are a waste of time and money except for mining new buyer leads, or talking to the neighbors in the immediate area, whom are mostly just curious, but who may also become good leads down the road for your agent.

    Assuming you have done a great rehab, are you maximizing exposure by using professional photos, 3D tour and floor plans? Have you done a great job demonstrating livability and sense of community via MLS public remarks and other advertising (such as a single-property website and social media; Facebook, Twitter, Instagram, YouTube, LinkedIn)? Do you have the listing shown everywhere (via MLS and syndication)? Do you have the property priced at true, researched, market value, or did you start at "Cost + Desired Profit = List Price?"

    As a last question:  When your agent listed the property, did you agree with their market value assessment?  If not, why not and what is your agent doing to resolve the issue now?

    Your market appears to be a seller's market, however, your price point appears to be well above the average home value.  This said, what are the market conditions in your price point?  How does your property compare to this and have you thoroughly discussed this with your agent?

    I know you are feeling the pressure, but selling real estate is not dissimilar from baking a really good chocolate cookie -- you follow the recipe and it happens.  Don't and it fails.

     An open house on a vacant property that has been "open" 24 hours a day since it's been listed is a ridiculous waste of time and energy. It's embarrassing honestly. Looks completely desperate like the seller and the seller's agent have no idea what they are doing. Everyone needs to stop running around the obvious here. It's the price. 

    3Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    A fatal mistake flippers make in Hagerstown, Baltimore, and areas like that is the time it takes to sell a property.  I just sold a flip a few months ago in a slow moving location, and even though I told the seller very clearly that in that location it would take a few months to sell, and no matter how many times I told them that, it just didnt take because they were under pressure from their hard money lender to get it sold quickly.

    Sometimes price is the issue.......but sometimes it is not. Sometimes its priced right, but you have to be patient to get the right buyer.

    The ARV can change too. Markets are dynamics. A property could had an ARV that was X dollars when you bought it, but the market changed and now its worth Y dollars. Coming on the market in January isnt the best. I like to drop my bad inventory on the market Feb 14-28, then start dropping my good inventory in March.

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  • Joseph CacciapagliaBusiness Member
    Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    There are really only two things that matter when selling your home: 1. The home itself. 2. The price. In today's market if you have had 20 people through your home, and no offers, then either you have not done a great rehab or you are way overpriced. Before listing the home, the agent shouldn't have let you price it where it is, or should have suggested ways to improve the renovation you completed. However, once it's listed, the biggest thing the agent can do is get people through the door. This has clearly been done. It doesn't take 20 showings to sell a beautiful and well priced home. Of course, I would typically follow up with these people and ask for feedback, but often they are not going to provide useful information.

    I think there are 3 main places where an agent adds value on the sale side: 1. Setting the price. This is the most important factor. I will not take a listing if the seller wants to significantly over price it. Unfortunately, plenty of agents will. 2. Renovation/decorating advice - You can't expect your agent to be an interior designer, but they should be able to give you advice on what home buyers are looking for in your market, and simple/cheap things you could do to make it more attractive. 3. Negotiating offers as they come in. There is a very wide difference among agents when it comes to negotiating training and ability to negotiate. This negotiating skill also comes into play when repairs come up after the inspection, or there is some other unexpected issue. Notice I didn't mention marketing...

    I think most agents that focus on their extensive marketing efforts are being a little disingenuous. Most marketing, including open houses, newspaper adds, tour of homes, etc. results in buyer leads for agents, but not necessarily buyers for your particular house. People that are actively seeking a home in your area are already working with a buyer's agent and are looking at the major websites that every property on the MLS shows up on. The days of needing a well networked agent are a thing of the past. The only aspect of the marketing that really matters with a single family home is having a complete listing and great pictures. This is a pretty low standard though, but unfortunately even this isn't always done.There are several other jobs that agents are completing for you to earn their commission, but most of the rest are of an administrative nature.

    Of course all of this is colored by my experience in my market, which may be different from yours.

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  • Bryan Devitt
    Contractor · Oxford, MA · Member since 2018 · 807 posts · 745 votes
    6y

    It is bothering me that you say the realtor needed to be assertive about the price. So you hired a professional, they told you what it was worth, you disagreed, it didn't sell and now it is their fault? It doesn't sound like you're taking any responsibility for this project. They could have given you a higher ARV when they sold it, they could have been wrong or your renovation could have been far short of what they expected or you said it would be. One major difference between successful flippers and 1 and done failures is accountability. Every failure from start to finish is your fault in one way or another. The initial ARV estimate was wrong? Why didn't you get multiple opinions and back it up with your own research? Reno went over budget? Why did you let it? What did you miss? Who didn't you babysit good enough? Price is too high when you list it? Why didn't you listen to the realtor? Why didn't you do your own research and if you did, why was it wrong? The realtor is supposed to get people in the door, the house is supposed to sell itself. They did their job, you didn't know your jobs good enough to be successful

    1Reply
  • Ilya Z.
    OP
    Rockville, MD · Member since 2017 · 74 posts · 13 votes
    6y

    Thanks to everyone for their comments! Was out of a town for a few days so now catching up.

    We had not 1 but 2 open houses and I would now agree with @James Wise that these might have been waste of time. The house is empty so people can schedule a showing any time, and so far all feedback from people who were at least somewhat interested came from those individual showings.

    We do have photos which I think are good -- maybe could be better -- and a video tour. The rehab was done well

    Looks like one of our biggest mistakes was setting the initial price too high. We based it off of the ARV the agent gave us when we bought the house and went up from there because (i) the house looked so much better after the rehab than it did originally and (ii) we spend more than we expected even though we followed the agent's and GC's advice on limiting it to the "basics". That said, I genuinely think we did a good job on the rehab and many people commented on it, so price is probably the biggest factor.

    The house might actually be a bit of a one-off but not in a good way: it's a rancher without a basement or usable attic, and it's concrete/cinder block construction. Several people commented about the basement -- not sure why they came to see the house in the first place, though, since the listing states no basement. Plus the layout of where bedrooms and bathrooms are located relative to each other is less than optimal.

    We did try to make our own estimates of the ARV before we bought the house but there were very few comparable properties in the area so we decided to rely on our agent's estimate.

    At this point we'll probably need to drop the price more. We're already in the red territory so from here on we're minimizing losses. Hopefully the warmer weather and the lower price will help.

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