Realtors Are Worthless, Except for These 2 Reasons

TLDR

99% of real estate agents are worthless, but you still need one for two reasons: access to the MLS, and the ability to sell the buyer’s agent. Everything else is a bonus that most agents do not deliver.

Table of Contents

• Why You Still Need an Agent
• Reason 1: The MLS
• Reason 2: A Good Agent Sells the Other Agent
• The Digital Introduction
• What You Should Expect from Your Agent
• FAQ

Why You Still Need an Agent

I have been buying real estate for 15 years. I have flipped over 300 houses. My wife owns a brokerage. So I know what agents are worth and what they are not.

Most agents are worthless. They care more about being a realtor than about working for you. They treat other agents like a little club they do not want to upset. That is the default of human nature, and human nature runs the show unless somebody does something about it.

But there are two reasons you still need one when you go to sell a flip. Miss either one and you leave real money on the table.

Reason 1: The MLS

The MLS is the multiple listing service. It is where every real estate agent lists every property. The buyer’s agent sets their buyer up on an automated search on the MLS. So if the buyer wants a $300,000 to $350,000 house with three beds, the buyer’s agent feeds them that list on a timer.

Without an agent listing you on the MLS, you cannot get in front of those buyers. You can put the house on Zillow or Redfin, but that is not the MLS. Most buyers of your finished flip are working with a buyer’s agent, so most buyers will never see your house if you skip the MLS.

There are flat-fee services that let you list as FSBO but make it look like a real listing. I have used one before. It works, but it is a workaround, not the default.

Here is why straight FSBO hurts you so bad. When you sell a house, you are trying to put a positive filter on the property. That is why you do the renovation. FSBO puts a negative filter on it instead. Most agents do not want to deal with you. The only buyers who find you are the ones hunting for a steal. They assume you are desperate and negotiable. You will not take their lowball, the house sits, and now the filter is “something is wrong with this house.” Price cut, longer days on market, lower final price.

No MLS means no audience. No audience means no price.

Reason 2: A Good Agent Sells the Other Agent

The second reason is the one most new investors miss entirely. A good agent sells the buyer’s agent on your property. Not the buyer, the buyer’s agent.

Here is how it works. Your agent is the seller’s agent. The buyer has their own agent. The buyer trusts their own agent because they hired them. If your agent can convince the buyer’s agent that this is the right house, the buyer’s agent then goes and convinces the buyer.

There is built-in trust between the two agents because they are in the same little club. That trust does not exist between you and the buyer’s agent. FSBO walks in with zero trust. A pro agent walks in with pre-built trust and uses it.

A bad agent will not do this because they care more about not rocking the boat with other agents than about getting you the best price. A good agent treats the buyer’s agent like the actual customer and sells them like a pit bull.

Pro Tip

When you interview listing agents, ask them how they plan to sell the buyer’s agent on the property. If they look at you confused, they are not the agent you want. If they walk you through how they pitch other agents, hire them.

The Digital Introduction

The rest of what an agent does boils down to what I call the digital introduction. It has three pieces, and the order matters.

Pricing

Pricing is the most important. If you price a $350,000 house at $375,000, the buyers who see it are shopping in the $375,000 bracket. They compare your house to nicer houses in nicer neighborhoods and yours looks like the worst one on the list. That does not sell.

On the other side, overpricing means sitting on the market longer than average days on market. Once that happens, the filter becomes “what is wrong with this house?” and you get low offers just to move it.

You do not change the market. The market is what the market is. Price to sell.

Photos

Photos are the first impression. I have literally bought houses, done zero work to them, hired a better photographer, and put them back on the market for $20,000 to $30,000 more. That is how powerful the photos are.

Good photos put rose colored glasses on the house before the buyer ever walks in. Bad photos, iPhone shots with the date in the corner, do the opposite. Buyer walks in expecting a dump and finds a dump.

Copywriting

Copywriting is writing with the intention of making somebody take an action. The action you want is for them to schedule a showing. “Welcome to 123 Main Street” is not copywriting. That is a lazy agent.

Good copywriting gets the reader to picture themselves walking through the house. Lead with the best thing. The roundabout driveway. The wooded backyard. The open concept kitchen. Whatever the strongest feature is, hit them with it first. Make them want the house.

Dumb Mistake

I have watched flippers spend six figures on a renovation and then blow it at the finish line with bad photos and “welcome to 123 Main Street” copy. Every dollar you put into the house gets filtered through the listing. The listing has to match the quality of the work.

What You Should Expect from Your Agent

Only expect what an agent can actually do. Expecting more is going to dilute the stuff they need to do well.

The list:

1. Get the house on the MLS the right way
2. Sell the buyer’s agent so the buyer’s agent sells the buyer
3. Price it right
4. Professional photos
5. Copy that makes people want a showing
6. Direct the approach to the property, including where the lockbox goes

That last one gets missed. You designed the renovation around how people approach the property. You know which door they should enter, which view they should see first. Your agent needs to put the lockbox on that door and write instructions telling other agents to use it. I have put lockboxes on side doors before because the side door was the best introduction. That kind of detail moves curb appeal into the actual showing.

And then there are your own expectations. The biggest reason your house is not selling is usually you. You did the work, so you think the house is worth $25,000 more than the comps. It is not. Your agent is there to tell you what it is worth, and your job is to listen.

Get the fundamentals right. Do not ask your agent to be a magician.

FAQ

Can I sell my flip as FSBO and save the commission?

You can, but you will almost always net less. The commission savings get eaten by a longer days on market and a lower final price. The buyer pool is smaller and the ones who do find you are hunting for a discount. Unless you have a direct buyer lined up, list with an agent.

How do I find a good listing agent?

Interview a few. Ask them specifically how they plan to sell the buyer’s agent on the property. Ask about photos, copy, and how they pick list price. Look for concrete answers, not fluff. The best agents treat the listing like a marketing problem, not a paperwork problem.

I am just starting out. Do I even need to think about this yet?

Yes. The exit is baked into the buy. If you do not understand how the house is going to sell, you are going to overpay on the buy. Understanding the listing game tells you what to spend money on during the renovation and what to skip.

What is a flat-fee listing service?

A service where you pay a flat fee instead of a percentage. They put you on the MLS and leave most of the work to you. I have used one. It works for cheaper properties where the commission would not be worth the service, but you give up the buyer’s agent sales job.

Should I hire the agent with the most listings in my neighborhood?

Not automatically. High volume often means the agent is running a factory where your listing gets the minimum. The best agent for a flip is one who understands how flips sell. Experienced, but not so busy that you are an afterthought.