Real estate agent selling his own property

Real Estate Professional · Washington, DC · Member since 2014 · 4 posts · 1 vote

I have a home that I recently bought to fix and flip. Renovations are just about done and I'll be ready to sell in a few weeks. I want to market the property on the MLS to expose it to other agents, however, since I don't receive 100% of my commission I don't want to pay the selling side of the commission because that will reduce my net profit as the investor. If I list it, I'll get paid as an agent and investor, but I'm just uncertain about the best possible outcome since this is my first time wearing two hats. So for all my investor/agents out there, what are the best practices or scenarios to net the most money?

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Jeff CopelandBusiness Member
Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
8y
Personally, I always list my properties on the MLS, and I always offer a full commission (whatever is typical for your market) to buyer's agents. I do not want to give an agent with a potential buyer any reason whatsoever not to show my property.
A buyer's agent commission should have been factored into your analysis as a likely cost of doing business. And, as an agent yourself, you should understand the value in having a good buyer's agent with a ready, willing, and pre-approved buyer. I pay them happily and don't begrudge a dime of their commission.
As far as your commission as the listing agent goes, you can keep that to the bare minimum required by your broker (nothing in a listing agreement says both agents have to earn equal commission). The listing agent's commission is up to the seller (who's paying it), and the listing agent (who's willing to accept it). In this case, since you are both, it's a zero-sum game, other than your broker's split.
The best approach is to get it listed, but also try to sell it yourself - market it aggressively, hold open houses, and try to find the buyer yourself to save that buyer's agent commission. But if another agent sells it first, that's still a win.
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