Should agents sell pocket listing flips brought to you?

Question

Hi BP!

Curious of y’all’s thoughts…. If an agent brings you a fix and flip pocket listing to buy, should it also be expected that they are the ones to sell if for you after rehab?

Thanks!

Andy Sabisch · Answer

Depends on the relationship you have with the agent.  We have one that we rely heavily on when we are buying properties and she is worth her weight in gold but we have talked about flips (she has helped us with both rentals and flips) and understands that there may be some that we market ourselves even if they were pocket listings she brought to us.  We work well together but we both realize it is a business . . . she makes money on selling the pocket listing since the commission is not split and makes money on deal that we reach out to her on (on market listings).  I would definitely talk candidly with your agent BEFORE you find yourself wondering what is or is not acceptable with that agent.

As far as using a different agent, not something I would recommend but going with a flat fee listing company saves you the 3% listing commission and we have gone that route with the last few flips we sold.  But again, we were clear up front and did not wait until the sale was in play.

Fernan Nava · Answer

I think a better question is, what do you expect from an agent that brings you a deal. Do you expect the agent to bring you another? If so what are you willing to do for them. In other words, do you want a relationship or just people doing things for you.

Russell Brazil · Answer

Yes it is expected.

Jonathan Taylor Smith · Answer

I wouldn't say that it is "expected"; however, how likely is that agent to bring you another such deal in the future if you go with a different agent for the sale? For me personally, I certainly would NOT, as where's the appreciation? But then I would have also made it clear that I expect to get the listing on the other side. I'd say an exception would be if you or your spouse are also an agent, and so naturally you'd list your own properties.

Alecia Loveless · Answer

@Steven Barr I have built a relationship with one realtor who works with the largest brokerage in my area for 25 years. He is truly worth his weight in gold. He brings me deals and pocket listings, just helped me get an 8 unit that’s going to be a 2% deal shortly, and never seems to tire of showing me anything I want to see because he knows I’ll be buying more things from him. That in and of itself is worth tons.

If the realtor worked hard to give you the pocket listing I’d give them the opportunity to sell it to try to solidify your working relationship with them. As long as they have access to the MLS and work diligently there should be no real reason to go with anyone else.

Obviously if they don’t get results then switch.

Mike Dymski · Answer

Absolutely...the flip does not exist without the lead.  Nor does the next one...

Eliott Elias · Answer

It is not expected. But it is something the realtor will bring you to increase their chances of doing more business with you in the future. It is completely up to you whether you list it with them or not.

Should agents sell pocket listing flips brought to you?

Most Popular Reply