Why would I hire a Realtor? That's the question I asked myself back when I was seriously considering doing a "Fix & Flip" before I became a Realtor. I had the perfect little home in a great location near downtown Calgary picked out. I had been watching it for weeks. It had been rented out, and was in terrible shape... Perfect!
I had everything planned. Landscaping, I planned to build a new fence, a new garage, plant a new hedge. I new exactly what the existing kitchen looked like, and how I would go about renovating it. Take down the 70's cabinets, build an island, open up the space. Flooring... well obviously it would all go, and be updated to today's tastes. Light fixtures, bathrooms, windows, the fire place -- they would all get a face lift. It was going to be great!
Of course big ideas are nothing without the money to do it, and a plan to come out ahead of the game. So I contacted a lender, came up with my budget, a timeline, and tried to figure out how much the place would be worth after the transformation.
A significant part of the budget depended on whether or not I would hire a Realtor to sell the property once it was finished.
- Could I sell it myself?
- For How Much?
- Just how do you go about getting your property listed on the MLS?
SO IT TURNS OUT...
You can sell it yourself, but it can take quite a bit longer, because one of the fastest ways to reach the highest number of serious home buyers is through the Multiple Listing System (MLS) and real estate agents who represent those buyers.
- Time is KEY when you're trying to sell your property for the best price, and the least amount of mortgage payments while the property is waiting to be sold.
- You can't post the listing to the MLS yourself, but your Realtor can.
- Determining the right selling price is crucial if you want to sell your property in the least amount of time. Your Realtor can help you determine the right selling price by comparing your property to other homes that have sold in the local market, feature by feature. Often Realtors that specialize in a specific area have intimate knowledge of the homes currently for sale, and ones that have sold, simply because they've either listed them, or helped buyers decide whether or not to purchase them.
Fixing and Flipping houses can be a Do-it-Yourselfer's dream (or nightmare), but when it comes to selling, it does pay to get the help of a professional if you want to get a return on your investment.
Yes, real estate agent commissions are substantial, but the cost of waiting for the property to sell, while being exposed to a very limited market, could be quite a bit more when you're paying for advertising, utilities, and mortgage payments on a vacant house.
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