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Updated almost 5 years ago, 03/04/2020
Selling 1st flip: what should I expect from a "great" realtor?
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!
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!