Not My First Flip - But Maybe My Messiest

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I came across this beaut and took the challenge. It was a property I took Subject To in WA that I helped the sellers with and they love me for it. They had it on the market for 6 months and the realtor had given up. When you spend more on a rehab doing dump runs than renovation, you know you're on to something  ;-)  

Start to finish on the dump runs and reno was about 60 days including travel. I took the project Sub 2 with a payout to the seller when we finished and sold the property. They walked away with a chunk of their equity and I cleared about $35,000. 

When we finished the project I hired a local real estate agent. After 30 days and no showings, I fired the real estate agent, RAISED the price above what they put it in the MLS for and sold it myself remotely within 2 weeks. Sometimes you have to take things into your own hands.

Kitchen Before:

Kitchen After:

Livingroom Before:

Livingroom After:

Fireplace Before:

Powder room Before:

Powder room After:

Some of the UPDATED :-0  Wiring

ROOMS FULL OF STUFF

MORE

ROOMS FULL OF STUFF

AND MORE

ROOMS FULL OF STUFF

AND MORE

ROOMS FULL OF STUFF

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Regarding agents: An agent's tendency is to want to get as many listings as possible, hoping one will sell quickly. Or, sometimes they are just wrong in pricing the property. Or, they are like everyone else and take the path of least resistance. Anyway that you look at it, they are human and most agents receive very little training, if any training at all, so I am told by agents themselves.

But, the agent also wants a FAST sale because they have bills to pay. So, they will typically do two things. 1. Promise you the moon and a nice high price to get the listing. 2. Then when it doesn't sell right away reduce the price $10,000 a whack to get the thing sold.

I did the math. For every $10,000 of list price at 6% commission, the agent gets $600. That $600 is typically split 4 ways between the two agents and the two brokers. The agent's amount is $150.

So, the agent gets $150 less for every $10,000 they reduce my sales price. The agent is willing to take that "hit" of $150 to at least get a commission while I lose $10,000. Bummer. I don't accept that.

She listed the property in the MLS and did nothing more and then wanted to reduce the asking price to make it sell fast. I told her I don't want it to sell fast, I want it to sell fair. (Not all agents take this tack, but a lot do.)

I fired her. Nicely, but firmly.

Instead, I raised the price figuring that it was shop worn at the old price. Most house search sites have the ability to select house prices between two amounts. I bumped it up to the next amount figuring I'd have a different crowd of buyers in that range. I located a Licensed Mortgage Broker to send people to in order for them to get approved for a loan, just in case.

I put up hand made signs that were very, very sophisticated ;-) that said "House for Sale". I ran an ad in Craig's List for free. I paid a service $250 to put the property in the MLS. I took flyers to the local real estate agent's offices and put them in their boxes. I paid to have a post placed in the yard and I had a sign hanging from the post. I did the "Opens" (while I watched the games).

The successful buyer saw one of the signs I had at the intersection, followed it around and loved the house. I sent him to the Mortgage Broker and soon enough, they were happily involved in a nice newly remodeled home. I took care of "both" sides of the transaction using the Mortgage Broker and Escrow. There was no agent involved so I saved the entire agent fees less the minimal marketing costs and a couple of days lounging at the house, enjoying my craft. Yes, it did appraise for the full asking price.