Should you use a real estate agent to sell your house?

If you’re close to being finished with your flipper property or new build and are gearing up to sell (and close your hard money loan!) you may be wondering: should I use a real estate agent?

It’s a common question and one you’re smart to take into consideration. If you’re new to the world of flip and fix or new construction and don’t have your feet under you just yet, you may be considering using an agent to help make the selling process a little easier.

There are definite pros and cons to using a real estate agent to help you sell your property and we’ll explore them here and give you some alternatives too!

The biggest pro is that a real estate agent can add value – especially on high dollar homes where they have connections to the area and to the market.

Real estate agents offer a different type of expertise, that you’re unlikely to find anywhere else.

They know how:

  • The market fluctuates
  • To market your home correctly online
  • To take proper photos so the home shows well on the MLS
  • And much, much more

If you used a hard money lender like Loan Ranger Capital, and are wanting to use an agent to sell your property, it’s a good idea to use a real estate agent who has experience working with hard money lenders. That way they’ll know exactly what information needs to go to, and come from, the lender.

They can help you build a foundation of knowledge that you’ll be able to take with you on all your future projects.

The most obvious downfall when using an agent is the cost. You pay 6% at closing — three percent will go to the seller’s agent (your agent), and three percent will go to the buyer’s agent.

But what if you don’t want to use an agent? What are your alternatives?

Alternative #1 – Acting as your own real estate agent

In the state of Texas, you can become an agent in just a few months – you can do it online or in person. Here’s how you can become an agent! 

What are the benefits? You’ll save 3% on the sale of your property, however, you’ll still have to pay the buyer’s agent.

What are the cons? This is much more time intensive for you.

You’ll have to field all calls, do the staging, take pictures to post on MLS, list the property, etc. – all the things a real estate agent does.

Alternative #2 – Use a daily listing service

The biggest pro to using a daily listing service, like Listing Spark, comes if you can sell your house quickly. Instead of a percentage, these sites charge a daily fee. This is great if you sell fast!

It’s also the biggest con if you are unable to sell quickly. If your property takes too long to see you can accumulate a big fee.

Services like this also won’t give you the same quality and attention to detail an agent would.

Alternative #3 – Listing the property on an online site like Zillow

We recommend this as a last resort.  The main reason is that the number of people buying through Zillow is much smaller than through other methods like the MLS.

Many older listings remain, despite the properties no longer being for sale.  You can also run into fake listings because sites like Zillow are not well regulated like the MLS.

When it comes down to it, whether you work with a real estate agent or not comes down to what your priorities are. There are pros and cons to both using and not using an agent, and you’ll have to spend money either way. The main difference comes down to how personally involved you want to be with the selling of your property.

We hope this information helps you when it comes to making this decision.

If you’re just starting in the real estate business, either flipping or building homes from the ground up, and are looking for any advice – whether you’re wondering if you should use a hard money lender, or an agent or broker, or anything else – feel free to reach out. We’re happy to help!

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