Second flip made 31k, and the only change was buying the scope from an agent

First one I wrote the scope myself off YouTube and a lot of opinions. Went 41 percent over budget.

Second one I did something simple. Before I closed, I paid a listing agent 500 to walk the house with me and tell me, room by room, what she would need to see to list it at 279 instead of 251. Not what I should renovate. What she needed to see to hit the number.

Her list was shorter than mine. She didn't want the second bathroom touched beyond paint and a mirror. She wanted the front door replaced, the kitchen counter and backsplash done, all the flooring on one level to match, and the yard cleaned up hard. She specifically told me not to bother with the interior doors I'd budgeted 2,200 for.

Bought at 198, scope 27.5 against a 26 budget, carry three months at 1,750, sold at 281 in 16 days. Net after selling costs about 31k.

The part that nearly broke it: the front door she wanted was a 9 week special order, which I found out in week two. I bought a stock door in a standard size and had it painted the color she asked for. Nobody noticed. If I'd waited on the special order the whole win goes away in carry.

What I'd keep: paying an agent for pre-purchase scope input. 500 dollars against a 2,200 line she killed on its own.

Answer

3chriswalton8CC1CPRO8

The reason this worked is that you asked her a pricing question instead of a renovation question. "What do you need to see to list at 279" makes her defend a number she'll later have to stand behind in front of buyers. "What should I renovate" invites a wish list with no accountability attached to it.

Worth being clear about the limit though. She's telling you what buyers in that pocket respond to right now, and she's right about that more often than you will be. She isn't telling you what it costs, and she has no reason to care whether the counter she wants is 3k or 9k. So her list sets the target and you still price it and still walk if the priced list doesn't leave a spread.

One question on the 500. Did she list it? Because if she did, the 500 buys you a scope opinion from someone who wants the listing, which is a mild conflict. Not a reason to skip it. Just a reason to ask a second agent the same question if the first list is expensive.

2 replies

1dmitri_v6CapitalPRO6

If you're paying an agent 500 for pre-purchase advice, get it in writing what that 500 buys and whether it obligates either of you on the listing. Whether a paid walkthrough opinion touches licensing or agency duties depends on the state, so ask her broker how they want it documented. A one page consulting agreement is normal and it keeps the 500 from turning into an argument about who had the listing.