#037 How to price your flip house to sell for top dollar with Aaron Hendon.
On this episode of House Flip Masters Holly is joined by guest Aaron Hendon. Aaron shares his secrets on finding selecting a realtor to be on your team or to work with you on your investments. Aaron is a Seattle realtor, real estate investor, author, educator, and speaker. Aaron is also the managing partner of Christine and Company, a Seattle magazine awarded 5-star real estate agency winning team the past five years, he is also this years individual rising star in Seattle real estate winner.
Being a New York native Aaron finds that hustle is engrained in him that he uses to his advantage. Aaron graduated from art school and found himself waiting tables, and shortly after opening a bakery that he owned and operated for 9 years until he sold it. Aaron quotes author Daniel Pink saying that ‘to sell is human,’ as a business owner Aaron got into the sales business which ultimately lead him to real estate.
Aaron is an advocate for education, teaching first time homebuyer classes, he wants people to be knowledgeable about the other side of real estate so that they are empowered to make better choices in their real estate decision. Aaron is in the process of writing a second book to help people learn about the real estate process and what happens on the other side of the equation.
Holly asks Aaron when selecting a real estate agent what numbers do people normally focus on and what numbers should they focus on instead? Aaron says that people pick their realtor based on the number of units a realtor has sold or signs on homes being sold; a higher volume of units sold equates to a better agent. From the realtor’s perspective it looks great that they have sold a lot of houses but the number of homes sold does not tell you about the person’s performance or how much better they are than the next realtor. Aaron asks Holly what she looks for when she’s looking to buy a property - to maximize the bottom line in the shortest time possible. Aaron recognizes that this is important to a lot of flippers or investors and says that no one asks him how much over listing price he averages compared to the local market average; a question that you should be asking when selecting an agent. Aaron averages about 5% more than the local market average. When Holly asks how he does it Aaron says it’s all in his marketing plan, the way they set the price of the house, and not taking every listing. Any agent will take your home and price it at what you want, but not Aaron, if your home is not valued at what you want to list it at he will not take the listing because it is not going to sell.
Holly reminds listeners that a lot of time when a home is being sold, that home often has more value to the people that lived in it than what it is worth on the market. These people raised their children in these homes, made memories, upgraded the flooring 10 years ago - these sellers are often offended or get their feelings hurt when they cannot get the price that they feel that they deserve. As a flipper Holly reminds her realtor that her feelings will not be hurt by the price the home is listed at or what needs to be fixed because she is in the business of making money and getting in and out of the flip quickly.
When you select a realtor you need to have someone who is going to price aggressively and not overprice the home. You can get over your price when you have 4 or 5 bidders, but if you price too high people will not continue to look higher than what the home is originally priced at. To sell your home you need to be proactive and have a strategic plan in place to get the most people in and seeing the home to have a better outcome.
Holly and Aaron talk pricing strategy saying that you want a realtor that has come to you with the data; the market value and the trends of the homes selling in your area; they need to have the evidence because any realtor can say that they know the neighborhood but its they don’t have the evidence to back it up what do they really know? Aaron says that the market is always right and the market doesn’t lie - get a realtor that is going to price right and knows your market.
Pricing your home lower is going to get more eyes on the home and increased interest and will get you closer to the dollar amount that you want to sell or buy your home at. When you have a lower priced home you end up with people bidding against each other and bidding up the price of the property.
When asked if he has comments about offering 4% commission to bring in buyer’s agents. Aaron says that he doesn’t get it, he can’t see an ethical buyer’s agent promoting your listing because they are going to get more money. From his perspective he cannot see that extra commission helping to motivate him to sell that home. Both Holly and Aaron agree that they want to help their clients get the home that they want not the home that is being pushed for extra money.
Holly asks Aaron to give his advice on vetting realtors for those who are looking to flip and those who want to invest. He says the best way if you are flipping is to interview them, his book ‘Don’t Get Fooled Again’ discusses the seven questions you must ask to avoid hiring the wrong real estate agent. His book gives you the lay of the land and also includes a template to email the real estate agents to help you decide who is the best fit for your needs. You really want to find out how well versed they are in the things that matter most to you and the goals that you have.
If you are interested in learning more from Aaron and getting your hands on a copy of his book you can find it at the link below. Once you have registered for the book Aaron will email you back, in that email he will provide all his contact information and encourages you to reach out to him and stay in contact. Additionally, anyone who gets the first book will be sent the second book for free.