All Forum Posts by: Account Closed

I like the MLS listing service. It's a great way to get your property in front of realtors that are searching for properties for their buyers. That along with consistent postings to Craigslist and calls to property managers that have clients that are always looking for more properties are great tools. Also, post in your community garage sale groups on Facebook. Totally free and they usually have a big audience.

My favorite people to beat down on pricing are For Sale By Owners. They fold. Statistics prove that FSBOs sell for 20% under market. FSBO's, for the most part, are not professional negotiators, either totally over price their home based on "Zestimates" which are notoriously incorrect or under price them based on those Zestimates. Big hint; Zestimates are not comps. FSBO's don't know diddly about absorption rates or prime market times or off-market sales. They're usually not well versed in auction sciences and don't know how to start a bidding war. I'm pretty sure that most FSBO's have day jobs and can't put all their time and attention toward what it takes to market a home anymore. It takes more that an mls listing and a sign in the yard to sell a home.

Pros of flat fee listings: Cost savings.

Cons of flat fee listings: You need to hold the open houses, make the flyers, do the showings, do the negotiations, put up the signs, and do all the paperwork.

I did a flat fee listing on my very first flip during a super hot sellers market where multiple offers over asking were common and I had the time, ability, and willingness to do all the work. Later I used agents to sell and now I list my own on some, co list with other agents, or let another agent do it all, it depends on the circumstance but I can list my own because my wife is licensed and I have more experience than most agents do. My transaction history greatly exceeds that of most agents so I have the ability to put negotiate just about every agent I come across. 

Starting out, you may not have those advantages so your key is your current market. If a hot sellers market, flat rate and offers should fly if you price it right, not a sellers market, get an agent. Somewhere in between, get an agent and spend your time finding the next deal. 

I have found selling through an entry only service very easy. Have a good attorney, take decent photos, know your market and it is very straight forward. If you are doing volume, it's probably better to use a realtor. If you flip one or two houses at a time, listing yourself, offer 2.5-3% to the buyers end and save the rest for yourself.

Determine which business you are in and focus on that.  Realtors are in the business of selling your home that you are flipping.  My personal preference is to have a Realtor list my flip.

@Account Closed    I tell everyone the same thing.  Educate yourself.  Then ask two or three agents for brokers price opinions.  Let them know you are considering listing the property and are interviewing agents.

Once that is done, try for at least two weeks to do for sale by owner using their pricing information.  If you need help with the contracts hire a lawyer.

If you do not get any offers in that time, hire an agent.

Selling your flip on MLS by that "no service" listing is tricky - unless you know a lot about marketing, negotiation, contracts etc

You still have to pay to selling agent - you just save on the listing agent service, which includes taking professional pictures, negotiating on your behalf, getting opinion of other agents and buyers on the price. Even if you hold your own open house, not too many people will tell you why they think it's not good for them. To aghast the price, you have to know the feedbacks. 

Then, when getting through all the inspections (City, buyers, banks) you have to know how to handle objections, counter the buyers demands on the inspection results. It's like during a divorce represent yourself while your spouse hired a lawyer - and you're paying for the lawyer!

Besides, if the selling agent prepare the contract, doing both agents work - he/she might ask for more commissions.

But you already paid flat fees for MLS, somehow paid for decent pictures (that first impression from your property), spent time to research the market to make sure your price is not too high but not too low for the local market.

There are plenty of people who want to save few bucks on the listing agent but these are not flippers. People, who make money on the real estate, don't do flat fees MLS. It's a separate business just like every other trade: if you want to sell well - you hire a professional....who knows how to

 I would STRONGLY suggest you NOT use a real estate agent

I used a listing company and paid $149. They put it on MLS, REALTOR dot com Zillow etc

 Got 2 offers just under asking price, even after real estate agents  here at BP said I listed it too high. 

Saved myself over $15,000

But just found an even better listing service. $7/day. They take the pictures for free and give you a sign for your yard and lock box

For $35 they will send post cards to all local real estate agents

For $199 they will hold an open house for you with an agent there. 

I have 3 more places to sell and will do it that way 

My 5 cents. I'am selling my flip in the market considered a buyer's one. I posted my FSBO ad with the price 5% below market on zillow.com and in 10 days/3 showings/2 offers i upped the buyer to full market price. Instead of some bypassing buyers when their agents combed the area in one day just to show a house the buyer's have no idea about, all three showings were initiated by the potential buyers who eager to see the house after they saw pictures on Zillow.com. They saw the pictures, they hired the agent. It saved me a lot of hustle to show the house. I pay the buyer's agent 2.5%. After inspection was done i decided to back up the deal and today i exposed the House to MLS for 199. Filled out the forms. Waiting to be listed. We'll see.

At the same time i tried to sell my primary house with an agent. Total disaster. I just couldn't justify hiring a seller's agent. He took some shacking pictures, put the house on MLS, and run the schedule of futile showings. Which i had 13 in 2 weeks. I called them 'tourists'. I put the house off the market till next year to take 2-year tax-free advantage. Lesson learnt

Licensed agent here, so my answers may surprise you, but some things to consider first:

Are you in a sellers market or buyers market?  Meaning, who holds the power in real estate sales in your area right now, buyers or sellers? The info you need to know for this:  Within 1/4 mile of your flip and within the past six months, what is the average Days On Market?  If it's less than 7 days, its a VERY hot sellers market.  Also, are those same homes selling for at least 98% of list price, sometimes over asking price? If these criteria are evident in your area, its a strong sellers market and I actually would recommend using a flat-fee listing. (Ironically, you may need a Realtor to provide you with this data.)

Also, take into account your involvement.  Doing it yourself means you may have to coordinate and be present for showings, answer calls at strange hours and navigate unfamiliar paperwork that you may not be comfortable with.  Does this work for you?

99% of the investors I know and work with use licensed agents so they don't have to be so heavily involved.  They assume the costs as a normal cost of doing business, and plan accordingly.  In the long run, if you do more and more, it probably lends to a better peace of mind if you use an agent.

(My actual advice is to get your license - cost about $2000 in my state - and it pays for itself in savings with your first sold flip.)