- Prepare for snags, delays and extra costs when working with investors who are flipping a home
- Realtors working with investors have the opportunity to work a full cycle with them and continue as the selling agent
- It's important to understand the in's and out's of the local market to prepare appropriately
A typical buyer purchases a house to live long-term. Real estate agents expect these buyers. Investors aren’t your typical buyer, but these buyers purchase property in exchange for a resale, to rent or to rebuild. And contrary to popular belief, it can be incredibly beneficial to work with these types of buyers.
The location is a major factor in how slow or fast a house flips, and it varies greatly by neighborhood.
The Los Angeles market used to be a thriving place for flipping, and thanks to the 2008 recession, the flipping craze died down.
Today’s house flippers favor strategy over trends: a plan, a team, and a creative, improvising mind is mandatory.
The role of the real estate agent
The Realtor’s job in the home flipping process is to work with the investor to find hot neighborhoods. And the Realtor’s job continues after the sale where the investor’s hat changes from buyer to seller.
The agents’s job now is to prepare ad listings, open houses, and paperwork to sell the home quickly as soon as the home is complete. The process starts speeding up, and Realtors must keep up. Consistent communication with the seller about the renovation process is key.
When the process is complete, the realtor restarts the process. This time, the Realtor represents the investor as a seller.
Staying on track — even at the fork in the road
The creative improvisation comes from working around expenses, the weather, delays and theft. Realtors and investors must remain calm and act professionally during these sticky times.
Having a cushion of funds can help reduce the headaches when the inevitable roadblock takes place. A few common roadblocks to consider beforehand:
- When the weather doesn’t cooperate with you, work on an interior project.
- Install an alarm system and hide valuables in a secure location to avoid theft.
- Machinery may break down or be unfit for a project.
- Be mindful about getting items shipped and prepare for delays and/or damages.
A flip works in a Realtor’s favor when you plan. Moreover, Realtors must adapt to demand from traditional buyers and investors. Failure to adapt will result in losing potential buyers to your rivals.
Tonya Jones is a writer who specializes in real estate. She has written various content for Textbroker, My SEO Articles and Blogmutt.