When it comes to selling your fix and flip property, you typically have a couple of options.

The first is a Transaction Broker. The other is a Buyer Agent or Realtor. Let’s break down the fundamental differences so that you can focus on choosing the best option for your situation.

A Transaction Broker assists the buyer AND seller throughout a real estate transaction by ensuring that written and verbal communication is clear and transparent between all parties.

What it is:
  • A neutral party
  • Present to facilitate a deal
  • Ensures clear communication
  • Not legally bound
What it is not:
  • An advocate for either party
  • Void of responsibility

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On the other hand, a Buyer Agent works on behalf of the buyer, under a written buyer agency contract, to promote the interests of the buyer, and treats the seller as a customer.

What it is:
  • A buyer’s advocate
  • Contracted relationship
  • Commission-based role
  • Negotiator
What it is not:
  • A neutral party
  • Protector of seller’s interests
Transaction brokers must have an exclusive right to sell, written down and signed by both the buying and selling parties prior to activating the listing. In my experience, working with a transaction broker can make life easier on fix and flippers. You may find a property on an online real estate listing service, like RedFin, but there are other ways of finding and selling your properties, even if you have yet to hire a real estate agent. When potential post-rehab buyers call me directly instead of a buyer's agent, my role changes from a listing agent to a transaction agent. With the last property I closed, the post-rehab buyers did not have a real estate agent and were not actively looking for a new home. However, the couple knew that if they did move, they would want to stay in the area. Atypically, they bought the property that day, committing to the offer in only 4 hours. They were willing, ready and able to buy a home. In that case, I listed the house, and acted as the purchasing agent for the new owners. As you sell your rehabbed property, your buyers may not have an agent either. At that point and with a prior agreement, your listing agent can complete the full transaction, including inspection objections and resolutions -- saving time and money for both parties. Remember that as the seller, you can and should negotiate listing and transaction commission when the transaction brokerage details are signed and before these scenarios pop up. It is your job to account for all possible situations.

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The Closing Process

Once the property goes under contract, the closing process continues as normal.   Agents should ask do they have a home to sell and is it listed if so listed why aren’t they using that agent, have you been pre approved have you spoken to a lender they have to get their ducks in a row. The quick turn around requires you to ask qualifying questions to your agent. only lender docs two pay stubs, list of reserves, past two years tax returns. Have more questions about working with agents? Our Fixters' Academy coaches will instruct you on how and when to work with a Reatlor. Sign up today!