Selling newly remodeled home without an agent. Thoughts?

Flipper / Landlord · Tyler, TX · Member since 2016 · 255 posts · 126 votes

I just completed a rehab on an SFR and i am hoping to put it up for sale asap. I'm having a hard time deciding if i should use a listing agent to market the house and get me top dollar, or trying to do this myself. I'm pretty good with paperwork on RE already, so i think i can navigate and negotiate everything without an Agent. I was also thinking of listing it and just doing like a 3% commission to the buyers agent. I just would hate to go under contract and the other agent beating me over the head during inspections or contingencies that'll make me lower the sales price.

Any thoughts or advise on this ?

3 Reply

54 views

Most Popular Reply

Brian Pulaski

Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes

This is how I sold my first bunch of houses. I got it on the MLS through an entry only site and did the selling myself. I offered 2.5% to the buying agent. I sold them all with very little effort. The only hiccup out of 5-6 houses was one appraisal issue that we had to meet in the middle (closer to my number than the appraisers).

My opinion is that realtors are worth it (I use one now, but am getting my license as well) however I found listing and selling my own deals was not complicated. The main thing, make sure it's on the MLS and offer the buyers agent a fair fee (you say 3% which sounds right). Assuming you can navigate contracts, schedule and coordinate with inspections/appraisers, and are comfortable with it I think it's a viable option.

7 Reply

See this reply in the discussion

41 Replies

Jump to latestLatest

Sort by

Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y
Originally posted by @Maugno M.:

@Russell Brazil I went into Real Trends and started playing around with it, hopefully I can get some data for my town, Tyler. Maybe just using the same realtor the guy down the street used sounds good, ima wait till it closes and see how realtor handles.
I'm blown away, for 2018 top agents have huge numbers. #1 guy is here in Dallas area with over 1B in sales.
That guy in Dallas doesnt really sell that much....I dont think he should qualify. He basically has a system in place where he lists new construction on the MLS for a flat fee. He isnt actually selling all those. Its a big point of contention in the industry.
The real top agents in the country are located in a few markets...here in Maryland (One of them converted his team to a brokerage, so no longer qualifies..he was #1 for a decade, another KW agent here, the 2 guys in NYC you see on Million Dollar Listing, a few in LA and a couple other markets). Now the top 2 guys in Maryland...those are guys really selling a billion. They are just guys though, normal guys. I know both of them, and do business with both of them. The guy 2 doors down from me in my building does over $100 million in volume. (But he has 6 full time employees and a bunch of agents on his team)
The top 1% of agents...which starts at about $12 million in volume, do about 90% of all sales. Thats about 10% left over for the other 99%.
That means, 99 out of every 100 agents you encounter, are not doing that much business, and thus, dont really know what they are doing. Top 5% of agents starts at about $4 million in volume I think. Those are probably perfectly competent, but they arnt rock stars. 95% literally have no clue what they are doing, but its hard for the general public to really fathom that or understand it. So yeah, most agents are just flat incompetent, because they havnt gotten enough reps.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group546 Reviews
Website View Page
2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Matthew Paul:

Land is tight around me , the big boys are now going after the 4 and 5 lot subdivisions . That use to be the small builder niche
Totally hear you.. right in my neighborhood in Lake Oswego DR Horton bought and built on 6 lots LOL.. never seen that before.
but what it does is allow us to compete against these guys.. at least on the small infill deals.. last summer I decided to go out to Summerville SC and see if I could snag a 20 or 40 lot deal.. went through two DR subdivisions ( their models) and just turned around and left.. I cant even build them for what they were selling them for even if I got the land for free.. but they don't buy single lots in the historic district like I do.. so its more competing against guys like myself and there is enough business to basically go around at least at the 10 mil a year level I am at.. ( gross sales receipts) in that market. Oregon we do 10 to 15 mil a year. and in all our markets we are probably close to 35 mil a year in gross revenue.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
0 Reply
Charles Kao
Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
7y
@Maugno M.
What is the pricepoint? Depending on your knowledge and the knowledge of the agent you are using I would say its a depends. If you are
pricing it right and it will sell day 1 and you you know the process not just think you know then an FSBO is a possible good way to go. Personally I like to have one layer of communication and my agent had supreme negotiation tactics so it was worth the money before I became an agent. Lastly, don't overlook the relationships lost. Because my clients buy and sell with me I get them off market deals. If I have a client being cheap with me I just stop bringing them off
market deals and good luck finding a realtor to work with you and have your interest at best if you are an investor and listing FSBO. This alone is why I always listed with my realtor who helped me buy because it was alot of work to find the deal initially.
1 Reply
Charles Kao
Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
7y
@Mark Burlison In my opinion you could have had the title company do the closing for even cheaper than 400 and doing the closing is just one aspect of the transaction. Also a lawyer doing a closing for 400 is probably not a very good lawyer to accept that little. Lastly I have had lawyers kill deals with their egos so will
never ever bring a lawyer to closing. Lawyers are best used up to and prior to closing not at time of unless they happen to own a title company which is a completely different story.
1 Reply
Billy Smith
Shawnee Mission, KS · Member since 2016 · 716 posts · 313 votes
7y
I have no idea what any one else has said ,If it is a A neighborhood i.e. hot market. You understand how to pull comps, if not do a google search .
If you have the time to show it open house etc.. do it !
Here the seller picks the title company .
0 Reply
Mark Burlison
Member since 2018 · 83 posts · 51 votes
7y
@Charles Kao....first time ever using a realtor, always had a real estate attorney represent me at closings. Never had a issue...400-500 is the going rate here. As many have pointed out realtor not really all that necessary.(My opinion too)..3 per cent ? RIDICULOUS!
0 Reply
Troy GandeeBusiness Member
Real Estate Broker · Charleston, SC · Member since 2013 · 794 posts · 454 votes
7y
@Maugno M. At the very least, I'd find a list only agent to put in the MLS for marketing at a flat fee. However, if you haven't sold any yourself (or many for that matter), I'd hire an agent to help you. Not only will they keep the deal on the rails by foreseeing problems and having resources to remediate problems, they can also help you avoid liability with disclosing issues correctly and representing the property the right way.
1 Reply
Maugno M.
OP
Flipper / Landlord · Tyler, TX · Member since 2016 · 255 posts · 126 votes
7y
@Charles Kao The price point is around 85k.
0 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
7y
In our market, not having a house on the MLS greatly reduces the chances of it selling. It can be done, but it's a probability game.
0 Reply
MK Boatswain
Contractor · Atlanta, GA · Member since 2019 · 12 posts · 4 votes
7y
@Maugno M.
I’m not familiar with your market but in my experiences with selling homes on the East Coast, I was more savvy and plugged in than the realtor. Unless you’re going with a Realtor that has a strong individual network that you can leverage there’s no advantage to hiring one.
Now, if you don’t have the time to market and show the property, that’s when having an agent will become very helpful.
IMO (everyone has one), you can choose to try on your own for a period of time and the list with an agent if you feel you need some help.
Best of luck in your endeavors!
0 Reply
Quito Keutla
Real Estate Agent · Renton, WA · Member since 2017 · 204 posts · 151 votes
7y
@Maugno M. If your market is hot and you're comfortable with the paperwork and negotiation you could get away with just using the MLS service entry providers. However a competent agent will get you more in the shortest time possible with less hassle on your part. Happy Investing!!
0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Maugno M. the reason you should have an agent is because you don't know what you don't know. There is more to selling a home than navigating paperwork. A good agent leverages relationships and experience to avoid problems. They deal with the emotional aspect, which is the hardest thing to navigate because it is irrational. Many deals don't close. Buyer may not be properly validated, inspection problems, contingency issues, negotiation issues, financing or closing problems are some of the causes. I am not an agent, but after doing a bunch of deals, I have seen many situations occur.
It is good you are paying buyers commission at least. Assuming there is a buyers agent, they will do the heavy lifting to ensure it closes. Of course the buyers agent doesn't represent you, which means they could easily slip things past you that an experienced agent would catch.
The other thing to remember is when you list it FSBO get ready for most the calls to be from agents who want to list your property, haha. Unfortunately you have to be nice to all of them, because burning bridges with agents is dangerous in your business.
2 Reply
Maugno M.
OP
Flipper / Landlord · Tyler, TX · Member since 2016 · 255 posts · 126 votes
7y
@MK Boatswain
@Quito Keutla
@Joe Splitrock
@Ian Walsh
@Troy Gandee
@Russell Brazil

I want to save on this property as much as possible, since i'm over on my budget for it. That's why i didnt want to use an agent.
Listing it for a flat fee and then Buyers agent commission, will almost put me at the price to just list it with an agent.

I called the agent that listed a house down the street from me and already has it under contract. Says he has 15 years experience. He told me he put it under contract a couple days after he listed. He did tell me my 85k price point might be to high because the square footage on my house i fixed, is like half of the one he put under contract in the 90k range. But i did every fix to this house, with granite, backsplash, tile, hardwood floors, a/c. ..

I just fear sitting on the house, and it not moving... maybe hiring the agent will get me a quick sale which is what i want.
0 Reply
MK Boatswain
Contractor · Atlanta, GA · Member since 2019 · 12 posts · 4 votes
7y
@Maugno M.
Have you tried listing it yourself yet?
Make sure you’re marketing materials are top notch ie. pictures, video, staging!
1 Reply
Charles Kao
Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
7y
@Maugno M. Top selling does not mean best at getting you top price. Look for the agents that you have seen get top dollar by recent sales. I know alot of agents that do alot of transactions but that's because they rather sell a home for 105k instead of 110k because the commission is only 150 bucks more and it takes
more work to get that extra 5k. For us we show our clients we get top dollar and then market the neighborhood to show the neighborhood the comp for referrals. Don't let your eyes fool you. I have a client that we took from
another agent because that agent sent them a ton of emails and postcards and claimed they could get them a great deal. They were great at selling the client but not great at getting a good deal for them. My client overpaid by 20k at least and even paid cash on his first deal. Took forever to build the trust with the client because of what another agent did.
0 Reply
Maugno M.
OP
Flipper / Landlord · Tyler, TX · Member since 2016 · 255 posts · 126 votes
7y
Update: The house was listed with an agent. I chose an agent that responds well and quickly. Doestn't take her time to get back to you. I like to be in the loop. Her office is a couple years new, so they are on HUSTLE MODE.

My house is under contract after being listed about 14 days.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.