How to avoid or minimize Agent costs

[Rajagopalarao Paidi]

Is there anyway to minimize or avoid agent costs, I don't have much scope for profit if I pay agent costs, what options typically one has

[Greg Scott]

If you believe the solution to your problem is how much you are paying a real estate agent, the problem is not with the real estate agent. 

[Jose Jacob]

This is not a straight answer to your question but this is an answer for your next project. When you buy the property to fix&flip, you always add Realtor fee as part of your closing cost to calculate the MAO. I always do that. Real Estate Agents bring more buyers to your property. More buyers=more offers. More offers=higher selling price. If you are planning to stay in the Investing field, you need good real estate agents to help you in several ways. Try not to be penny wise and $ fo----sh. Good Luck.

Now answer to your question.  You can try to advertise the property in Zillow or FB marketing place or groups and try your luck. Hopefully your house is on your backyard. 

[Andrew Freed]

@Rajagopalarao Paidi - You can always get your license and list the property yourself. Nonetheless, there is definitely value in hiring an experienced agent vs. a novice agent. You will probably regain the commission in the form of a higher sales price with a expert level agent. 

Additionally, I normally build in at least 7% of the purchase price going towards transaction costs when selling a property. Agent commissions + closing costs. You should build that into your numbers and work your way backwards towards an offer price. 

[Russell Brazil]

Don't hire an agent if youre trying to avoid agent costs.

[Chris Seveney]

@Rajagopalarao Paidi

Recognize time is also money if you are financing it and I have found without an agent will take longer to sell.

Also are you local where you could manage all the showings, advertising etc?

[Peter Mckernan]

Quote from @Rajagopalarao Paidi:

Is there anyway to minimize or avoid agent costs, I don't have much scope for profit if I pay agent costs, what options typically one has

Do it FSBO if you want to save them and then hire a TC or company to do the work... The agent will have access to the biggest platform to get the property sold though, the MLS, so forgoing even a cut rate agent will create more of a loss than the agent fees themselves.

[Jonathan Minerick]

@Rajagopalarao Paidi Do a flat fee MLS listing ($100-$200) so you get the listing on the MLS and all major websites. Get a Transaction Coordinator to help you with the paperwork (~$500).

[Alecia Loveless]

@Rajagopalarao Paidi My agent has made me hundreds of thousands of dollars both buying and selling. I’d be foolish to try to skimp on his agent fee.

[Rajagopalarao Paidi]

Thank you all , very good responses, appreciate it

One question, can i list in FSBO as well as with an Agent ? which ever comes first ?

[Warren Powers]

@Alecia Loveless I agree. My agent is integral to my flipping and helps me make money. Maybe OP has not found the right agent.

[Jose Jacob]

Quote from @Rajagopalarao Paidi:

Thank you all , very good responses, appreciate it

One question, can i list in FSBO as well as with an Agent ? which ever comes first ?

 NO.  You have to give an exclusive right to the agent to sell the property.  Experienced agents do not like work on OPEN listings. 

[Bob Stevens]

Quote from @Rajagopalarao Paidi:

Is there anyway to minimize or avoid agent costs, I don't have much scope for profit if I pay agent costs, what options typically one has

yes dont use them LOL . I get all my deals OFF market, never use a realtor. You need to find better deals, there not on MLS

Good luck 

[Verna Littleton]

In this market, I would definitely list with an agent and not do FSBO. The market has changed and depending on the area, houses are sitting longer. You need an expert to push to get the house sold. Also listing it in MLS will put it in front of way more buyers. I fix n flip and I always add the cost of paying an agent in my budget.

[Steve Vaughan]

My go to for lowest hassles, taxes and  transaction costs are Lease Options or selling directly to the renters. 

But these are slow exits.  Speed and cost/tax-efficiency are usually mutually exclusive.  

[Bob Stevens]

Quote from @Rajagopalarao Paidi:

Is there anyway to minimize or avoid agent costs, I don't have much scope for profit if I pay agent costs, what options typically one has

 So then buy off market deals OR get better pricing. I'm assuming you are cash. IF not, you really do not have any options but to buy on market and go through a realtor. 

[Hassan Asif]

Quote from @Rajagopalarao Paidi:

Is there anyway to minimize or avoid agent costs, I don't have much scope for profit if I pay agent costs, what options typically one has

Talk with them! They make their living from this work and deal with more hassle than you can imagine, based on what I know from some of my realtor friends. A migraine is a normal thing for them. If you can't afford to pay what they're worth, just talk to them, and they might put more effort into reducing the deal cost so you can save money in other ways.