Great Rehab, now what to expect from the Agent?

[John Fiastro]

I am just wrapping up my first flip.  The house looks great! Not one square inch has gone untouched.  I am expecting to pay a stager.  I had a real estate agent come and take a look at the house and he said that he would charge a 5% commission.  For that he will pay for the photographer and the marketing.  I am trying to reconcile the commission rate and how much work is actually necessary to sell the property.  When a house looks great, should I just find a listing service? Or should I go with my 5% agent?

[Russell Brazil]

You shouldn't just use a listing service. Most of the work on a transaction is done while the property is under contract.

But also you should have already have been working with an agent during the rehab. This is where their expertise can really come in handy, especially if they have ever flipped themselves. From pointing you towards paint.colors and finishes appropriate for the location and price point and helping you avoid easy mistakes.

You should also not just pick your agent now based on price, but based on who will get you the most money in your pocket, as well as who understands how to work with the appraiser, how to select the best offer, who knows what buyers will sale through and which ones will fall through etc.

The appraisal issue is a real concern if it's in an area where there are not a lot of flips taking place. So he especially mindful of that. Also make sure you don't pick an agent from a brokerage that gets black balled by the market. There are some whose reputation is that they list properties in disrepair and some buyers avoid that companies listings.