Flipping Housing & Selling Options

How to Get the Most of your Flip’s Sale

Flipping housing is an adventure that reaches one of its most exciting stages in the sale. In other words, selling your home or flip is one of the most exhilarating and nail-biting parts of flipping because it’s the moment of truth. This moment solidifies your profit. Knowing your lifestyle, circumstance and skills here are a few house selling tips, options and recommendations:

For Sale by Owner (FSBO)
Those who have the talent, time and energy sometimes choose the labor-intensive FSBO option. Some like the thrill, others like the idea of getting all the money to themselves. To get the most out of this option, it’s wise to have a thorough understanding of the market, know how to sell a house and comprehend the associated legalities. People often dream of this option due to the perceived higher gain, but if the seller is not a savvy realty enthusiast, they may be missing out on profit due to a poor understanding of the process, unsharpened negotiating skills, limited marketing tools and programs, or an emotional connection to the property.

Low Commission Realty Service
Typically, low commission realty services like a 1% realty or assisted sale option are positioned somewhere between FSBO and getting a realtor. As middle ground options, they usually do some of the work for you and often (but not always) take a smaller cut of the profit versus working with a full-service agent. Because low-commission service listings rely on both the seller and the agent, they don’t often leverage their effectiveness because one party can fall short. In addition, because this option is only a partial approach to marketing and selling a home, not all opportunities are realized. For example, some buyers’ agents may not be inclined to show these types of listings because of the lower commission rates. As a result, the reach and profit margin associated with these options can be smaller.

Realtor (Recommended)
Just like you wouldn’t climb Mt. Kilimanjaro without a guide, it may be best to choose realtor as your partner and guide in the home-selling process. Although this is an interesting comparison, what many people forget is that a realtor eats, sleeps and breaths the business; thus, they are aware of historical ups and downs, industry trends, emotional elements and best practices.

A house flipper is liable to get the highest profit with a good realtor because an agent has more industry-related resources available to them, the training to make wise recommendations, a devotion to their clients, a historical understanding of market fluctuations and no emotional attachment to the property (allowing them to negotiate the best deal). In addition, they know the buying and selling process intimately, so the seller doesn’t have to worry about missed opportunities.

Although an agent takes a small cut of your profit, they have to get paid somehow. Hint: prior to signing a listing contract the commission may be negotiated especially if you are going to become a frequent house flipper.

Ultimately, a realtor can assist in raising your profit through the expertise they provide, exposure they generate and industry know-how they posses.