Flip, Rent, or Hold: What’s the Best Path to Real Estate Riches?
Andi • October 5, 2017
Maybe you’re addicted to those home-flipping shows on HGTV where glam couples buy grim shacks, spend 22 minutes smashing down walls and adding funky kitchen backsplashes, and then make tens of thousands selling the refurbished places on the open market. Or perhaps you’re jonesing for a steady stream of extra income and feel certain you’ve got what it takes to be a landlord.
Or just maybe you’re on the prowl for a hands-off way to make serious real estate money with financial investments that don’t require laying down new flooring or screening prospective tenants.
Whichever option floats your boat, you’ve got plenty of company. After the epic boom-and-bust of the speculative home-flipping market in the aughts, everyone again seems to be looking to make a quick buck by becoming a real estate investor. But these days, there are a dizzying variety of different takes on the once-simple idea of property investing—all requiring varying levels of blood, sweat, tears—and risks. Which one might be right for you?
That’s where we come in. The realtor.com® data team looked at the five big real estate investments that everyday Joes and Janes may want to consider. Then we broke down the typical returns (aka profits) investors have received over the past few years, along with the pros and cons of each.
(Rampant flipping, spurred by overbuilding and easy, subprime mortgage-fueled credit, was a prime contributor to the real estate crash and recent financial crisis. But today, thanks to much tighter credit and inventory levels, home flipping is no longer the American economy’s red, flashing “danger” sign.)
“Over the generations, real estate has proven itself to be a pretty good, time-tested investment,” says Eric Tyson
, who co-authored “Real Estate Investing for Dummies.” “Like investing in the stock market, people who follow some basic principles and buy and hold over long periods of time should do fairly well.But, of course, there’s no guarantee.”
And that’s why the thrill-a-minute world of real estate investing isn’t for everyone—especially when life savings are involved.
“Real estate is very unpredictable,” says certified financial planner Jenna Rogers
of Mission Wealth in Santa Barbara, CA. “A lot of people feel like you can’t lose money in homes, but that’s not really the case. “If there’s any kind of turmoil in the market, real estate usually gets hit really hard.”
OK, now that we’ve gotten that
out of the way, let’s go shopping.
1. Home flipping: Not
exactly
like reality TV
First half of 2017 gross returns:
48.6%* 2014 gross returns:
45.8% 2012 gross returns:
44.8%
If the Property Brothers or Chip ’n’ Joanna can do it, why can’t you? Real estate reality TV has made the “fixer-upper” flipping market seem fun, very sexy—and mostly foolproof. But becoming a successful home flipper is a lot
harder than it looks on television. And it isn’t always as wildly profitable as you might think.
The returns appear deceptively high, as they don’t account for hefty renovation costs, closing costs, property taxes and insurance. Flippers should figure that about 20% to 30% of their profits will go straight toward such expenses, say experts. The median returns above only reflect sale price gains—not net profits.
Newbie investors need to make sure they’re thoroughly familiar with a neighborhood before they consider buying a potential flip in it, says Charles Tassell
, chief operating officer at the National Real Estate Investors Association, a Cincinnati-based investors group. This means looking at what kinds of homes are located nearby, what sort of shape they’re in, and how much they’ve sold for. Wannabe flippers should pay attention to the quality of local schools, transportation, and the job market—just as they would for their own home. Those are the things that can make or break a sale. And an investment.
A market where homes are still affordable but appreciating rapidly is ideal.
Like Pennsylvania! The highest flipping returns in the second quarter of the year were in Pittsburgh
, at 146.6%; Baton Rouge, LA
, at 120.3%; Philadelphia
, at 114%; Harrisburg, PA
, at 103.3%; and Cleveland
, at 101.8%, according to the real estate data firm ATTOM Data Solutions. Those Rust Belt cities topped the list because they have plenty of cheaper, older homes that can be easily updated, and
because housing prices there are rising as economies (slowly) improve.
Once they’ve settled on an area, flippers need to focus on the basic structure of prospective homes. Special attention should be paid to a home’s heating and cooling systems, foundation, and roof—the things that are most expensive to fix.
Then they need to create a realistic budget. Experts recommend setting aside 10% to 20% to cover any unknowns—like what’s inside the walls. Costly surprises are par for the course.
“The biggest hurdle of flipping is: The costs are never what they seem to be on HGTV,” says flipper and landlord April Crossley
, co-owner of Crossley Properties in Reading, PA. She owns the business with her real estate agent husband, and they do 8 to 10 flips a year. “In fact, they’re always way more.”
Flippers are gambling that the housing market stays strong in their target area—at least long enough to resell their investment home.
“You’re constantly anticipating what the market will be doing 6 to 12 months in the future,” says Daren Blomquist
, senior vice president at ATTOM. So if you miscalculate, and it drops, you could lose a lot of money.
2. Investment (rental) properties: You, too, could be a landlord
First half of 2017 returns:
13%* Three-year returns:
9.9% Five-year returns:
11.67%
Renting out a property provides a more predictable income stream.
Perhaps flipping homes, and all the varied costs and stressors associated with it, isn’t for you. But you’d still like to be a hands-on real estate investor. Why not consider buying investment (rental) properties?
One big advantage is the tax deduction folks get for their rental properties. They can write off their mortgage interest, property taxes, and operating expenses, as well as repairs.
Like home flippers, landlords-to-be should look at growing areas with new jobs moving in, says Steve Hovland
, director of research at HomeUnion, an Irvine, CA–based company that helps smaller investors buy and manage properties.
“I’m very bullish on high-growth markets, like Texas, the Southeast, Arizona. You’re always going to have new renter demand,” he says. But coastal cities can be tough for aspiring property owners because they’re just too expensive.
The best markets for investors were Cleveland
, which fetched a 11.5% yearly return; Cincinnati
, at 9.8%; Columbia, SC
, at 8.6%; Memphis, TN
, at 8.5%; and Richmond, VA
, at 8.2% in the first quarter of the year, according to HomeUnion. The worst were San Francisco
, at 2.8%, and Silicon Valley’s San Jose
, at 2.8%.
First-time investors may want to target middle-class neighborhoods near top-rated schools, where stability rules and tenants are more likely to hold steady jobs. These homes often require less maintenance—a boon to landlords who don’t live nearby.
“You’re always able to replace renters in nicer neighborhoods with good schools,” says Hovland.
Landlords who aren’t local or don’t want to deal with 3 a.m. calls about an overflowing toilet will want to consider hiring a property manager who will find tenants and coordinate (but not perform) maintenance. But that eats into profits, costing about 7% to 12% of the monthly rent.
And the payoff you get, as compared with flipping a home, isn’t in one lump sum, and isn’t always steady. For example, landlord and flipper Crossley rents out multiple single-family homes, duplexes, and apartments in the Reading, PA, area, and once had a couple stop paying their rent for six months after they went through a divorce. She had to eat those losses, as well as attorney fees, while she went through eviction court to get them out.
Landlords also need to have insurance on their properties and set up their rental companies to protect their personal assets, in case they get sued.
And like other investors, owners also run the risk that home prices—along with the rents they were counting on—could plunge.
“You have to be prepared for the worst. When something goes wrong in a tenant’s life, you’re the last person to get paid,” Crossley says.
3. U.S. REITs: Buying shares in real estate instead of companies
Those who’d like to own apartment and office buildings like a legit mogul but don’t have the bank balance to do so may want to turn to Real Estate Investment Trusts. Don’t worry if you’ve never heard of REITs. You don’t need a fancy finance degree to understand how they work.
Most REITs are publicly traded corporations that investors buy and sell shares in—just like stocks. Only instead of buying shares in Apple, you’re buying shares in real estate. Shares can range in price from just a few dollars to hundreds of bucks. Investors can buy into them on certain exchanges.
As with stocks, investors can make money by buying shares at a low price and selling them at a higher one, and
by collecting quarterly dividends (payouts are made every three months).
There are two main kinds of publicly traded REITS. Equity REITs own rental properties ranging from homes to business space, and make money collecting income on them. Residential and commercial mortgage REITs allow investors to buy mortgage debt where investors profit from the interest.
Of all of the real estate investment trusts, data center REITs—where companies rent out space to store their network servers—had the highest one-year returns, at 29.79%, according to the National Association of Real Investment Trusts, a Washington, D.C.-based REIT trade group. It was followed by home financing mortgage REITs, which invest in bundles of home loans, at 25.57%.
The biggest losses were in the retail sector, as more shoppers make their purchases online. (Thanks, Amazon!) Big shopping malls, usually anchored by department stores, took the biggest one-year hits, at -26.78%, according to the association.
4. Crowdfunded real estate: Like Kickstarter for property
Crowdfunded real estate
is like the younger, cooler cousin of REITs. Simply put, it allows ordinary folks to pool their money to invest in things like apartment complexes, office buildings, and shopping centers. It’s like a Kickstarter for buying real estate—instead of funding your college roommate’s feature-length documentary about Furries.
Previously available only to uber-wealthy accredited investors, crowdfunding only became open to the general public in March 2015. That’s when the government enacted new rules opening up the investments to folks without ginormous bank balances. So there isn’t much data available yet on how these investments perform over the long term.
While REITs can hold tens of thousands of properties and be worth billions of dollars, crowdfunding companies are often significantly smaller, holding just one or a handful of properties. And they often require a long-term commitment from investors.
As with REITs, the two main options in crowdfunded real estate investing are equity or debt.
Equity, the riskier of the two, involves investing in a fund connected to commercial or residential development. It makes money from the income the property generates and the increase in the value over time. The investment is usually tied up for about five to seven years. Debt is the loan used to get the project off the ground and continue to finance it through the life of the project.
Over time, accredited investors—the wealthier ones who have been in the investments the longest—typically receive anywhere from 11% to 45% annual returns on their equity crowdfunding investments, says Ian Ippolito
, a retired investor who founded the website The Real Estate Crowdfunding Review. Since these types of investments have only recently been opened up to the masses, the annual returns for regular investors are about 8.2%. That’s expected to rise if all goes well when the property is sold five to seven years down the line.
But if
the development doesn’t get fully built or doesn’t make any money, then investors may get nothing—and even lose their investment.
“These are long-term investments, so if you pull your money out early, there’s usually a financial penalty,” Ippolito says. That’s a big difference from REITs, which can be sold at any time. “Retirees who need the money soon probably should look elsewhere.”
Debt is a bit safer, but the payouts may not be as high.
5. Home appreciation: The investment you can live in
Folks don’t need to flip homes or pour money into crowdfunded projects to make money as a real estate investor. Instead, they can search hard for the perfect home, get their finances in order, negotiate smartly, and close the deal for the best possible price.
And then live in it.
Real estate typically appreciates over time. That means that buyers who buy a home in a decent area and keep it in good shape should make money when they decide to sell. Depending on the market and the home, sometimes a lot
of money. But they should plan on being in that home for at least five or so years, so they can build up enough equity in the home to net a profit once real estate agent fees and closing costs are accounted for.
“In general, buying a home is a good investment and a way to build wealth and equity over a lifetime,” says Joseph Kirchner
, senior economist at realtor.com®. “[But] even if you’re buying it to live in the house for the next 30 years, it is always better to buy when prices are low.”
And as folks build equity in their home, through appreciation and paying down their mortgage debt, they can take out home equity loans or home equity lines of credit against their property.
But of course, just as with the other investments on this list, there are risks. The country could enter into a new recession, or there could be a local housing market crash if a big employer leaves the area. Or homes in your area could simply be overvalued.
However, when home prices fall, they do generally rebound—eventually.
“Good markets aren’t going to last forever,” says real estate investment author Tyson. “Even the best real estate markets go through slow periods.”
* ATTOM Data Solution supplied the median gross home-flipping returns. HomeUnion provided the median returns of investment properties. The National Association of Real Estate Investment Trusts provided REIT performance data as of Sept. 21. The Real Estate Crowdfunding Review supplied the average crowdfunded real estate returns for nonaccredited investors. The review’s year-to-date data are through Aug. 1, while the two-year data are from October 2015 through Aug. 1, 2017. Median home appreciation is as of Aug. 1 and comes from realtor.com.
Many homeowners ask this because they are tired, busy, overwhelmed, or simply realistic. Not everyone has the time or desire to do repairs and upgrades before selling. The good news is that homes are sold as is in Bellingham and Whatcom County regularly. The short answer is: yes, you can sell as is, but your price and your strategy must match the reality of the home. An as-is sale can be smooth and successful when it is positioned clearly. It becomes stressful when expectations are misaligned. What “As Is” Really Means in Practice “As is” means the seller is not committing to making repairs. It does not mean inspections go away. Buyers will still inspect. They will still evaluate risk. They will still decide whether the home fits their comfort level. In practice, as-is works best when it is paired with honesty and strong preparation in other areas: clear disclosures, clean presentation, and pricing that reflects condition. Why Buyers React Strongly to Uncertainty Buyers can handle a fixer. What they struggle with is uncertainty. If a home looks like it might have hidden issues, buyers often assume worst-case scenarios. That does not mean you need to repair everything. It means you should think carefully about what the home communicates. A home that is clean, accessible, and straightforward about condition can feel safer than a home that looks half-finished or poorly maintained. When As-Is Is a Smart Strategy As-is can be ideal when the seller wants simplicity, when repairs would be costly or time-consuming, or when the home’s best buyer is someone who wants to renovate anyway. In those cases, the key is to align the listing strategy with the likely buyer pool. That often includes thoughtful pricing, clear marketing, and a plan for handling inspection conversations without surprise or defensiveness. When As-Is Can Backfire As-is tends to backfire when sellers expect top-of-market pricing while also expecting buyers to absorb visible projects. In a balanced market, buyers have choices. If the home feels like extra work and the price does not reflect that, they often move on. The goal is not to “get away with” selling as is. The goal is to sell as is with clarity and confidence. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you’re considering an as-is sale and want to understand the tradeoffs before you commit to anything, this is a good first step: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Realtor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andi.dyer.com
Many sellers don’t delay selling because they’re unsure about the market. They delay because there’s always one more thing that could be improved. One more project. One more update. One more box to check before the home feels “ready.” This instinct is understandable, but it can quietly keep sellers stuck longer than they intend. Why improvement feels productive Making improvements feels active. It gives a sense of control and progress. Instead of facing the uncertainty of the market, sellers can focus on tangible tasks with clear outcomes. In that sense, improvement can feel safer than exposure. How “almost ready” becomes a moving target The challenge is that “ready” is rarely a fixed point. Once one project is finished, another becomes visible. Homes evolve slowly, and perfection remains just out of reach. Over time, sellers may realize they’ve been preparing for years without moving closer to a decision. When improvements stop adding clarity Some improvements meaningfully reduce buyer hesitation. Others simply make the home nicer to live in while extending the timeline. The difference often lies in whether the improvement changes how buyers perceive value or merely improves comfort for the seller. Why waiting can narrow options Delaying for incremental improvements can compress future choices. Life circumstances change. Maintenance continues. What once felt optional can become urgent. Selling earlier doesn’t mean selling unfinished. It means deciding which “enough” actually serves your goals. A planning-forward reframe Instead of asking, “What else should I fix?” try asking: “What would need to be done for me to feel comfortable listing?” That question often reveals whether improvement is serving clarity or postponing it. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you’re wondering whether one more project is helping or holding you back, start here: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Rea l tor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andi.dyer
Selling a home you’ve owned for a long time is very different from selling a recent purchase. The decisions are heavier, the stakes feel higher, and the ripple effects extend far beyond the transaction itself. That’s especially true right now, as Bellingham’s market continues to shift away from the frantic pace of previous years and into something more balanced and selective. For longtime homeowners, the question is rarely “Can I sell?” It’s “How do I sell well without creating unnecessary stress, risk, or regret?” Why the current market requires more judgment, not more hype In hot markets, speed covers a lot of mistakes. Homes sell quickly, buyers compete aggressively, and imperfect decisions are often forgiven by momentum. That environment rewards agents who focus on volume and visibility. In today’s market, momentum is earned rather than assumed. Buyers are more cautious, more analytical, and less willing to overlook uncertainty. This shift places much greater importance on strategy, preparation, and decision-making — especially for sellers who have significant equity and long-term financial considerations. What homeowners need now is not pressure to act fast, but guidance that helps them act wisely. The importance of protecting equity, not just achieving a sale For longtime homeowners, equity often represents decades of commitment and patience. It may be tied to retirement plans, downsizing decisions, or long-term financial security. Protecting that equity requires more than choosing a list price and hoping for the best. It requires an agent who understands how pricing, preparation, negotiation, and risk management interact. Small missteps — poorly handled inspections, reactive concessions, or misaligned pricing — can quietly erode net outcomes even when a sale technically “succeeds.” Strong representation focuses on preserving value throughout the process, not just at the offer stage. Why communication and pacing matter more than ever Longtime homeowners often need more space to think through decisions. There may be emotional attachment, logistical complexity, or uncertainty about what comes next. An agent who rushes these conversations can create anxiety and resistance rather than clarity. What helps instead is steady, transparent communication. Clear explanations of tradeoffs. Time to absorb information. Guidance that respects the fact that this isn’t just a transaction, but a transition. When sellers feel supported rather than pushed, decisions tend to be stronger and outcomes more satisfying. The value of local, situation-specific experience Bellingham is not a single market. Neighborhoods behave differently. Buyer expectations vary by price range and home type. What works for one property may not work for another, even a few blocks away. Longtime homeowners benefit from agents who understand these nuances and can adapt strategy accordingly. Local knowledge isn’t just about knowing sales data. It’s about understanding how buyers interpret value right now, and how that interpretation should shape decisions. A planning-forward reframe Instead of asking, “Who can sell my house the fastest?” a more useful question right now is: “Who will help me navigate this sale with the least amount of risk and the most confidence?” For longtime homeowners, that distinction makes all the difference. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you’re a longtime homeowner weighing your next move and want thoughtful, low-pressure guidance, start here: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Rea l tor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andi.dyer
Inspection negotiations are one of the most emotionally charged parts of a home sale. Sellers often feel blindsided by requests and worry that the deal is slipping away. The key to navigating inspections successfully is understanding that inspection negotiations are not a judgment of your home, but a normal part of the transaction process . Why inspections feel personal For many sellers, an inspection report feels like a critique of how they’ve cared for their home. In reality, inspection reports are designed to identify issues, not assign blame. Nearly every inspection uncovers something. That doesn’t mean the sale is in trouble. How buyers typically approach inspections Buyers use inspections to understand risk. Some focus on safety issues. Others focus on major systems. Very few expect perfection. Requests often reflect buyer comfort levels rather than absolute necessity. What sellers can reasonably expect Not every request requires action. Some items are informational. Others may be reasonable to address or negotiate through credits. Understanding which requests are typical and which are outliers helps sellers respond calmly instead of defensively. Why preparation matters here too Sellers who have a clear understanding of their home’s condition before listing tend to feel more confident during inspections. They are less surprised and better able to decide what they are willing to do. A calmer way to approach inspection negotiations Instead of reacting to the list, it helps to ask: “Which items truly affect safety, function, or buyer confidence?” That perspective leads to better decisions and keeps negotiations focused. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you want to understand inspection negotiations before you’re in the middle of one, start here: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Realtor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andi.dyer
When a home goes under contract, many sellers assume the deal is done. But experienced sellers know that transactions don’t close until they close. This is where backup offers can play an important role. A backup offer is an additional offer that takes effect if the primary contract falls apart. Understanding how they work can give sellers more security and leverage. Why deals sometimes fall through Even strong contracts can fail. Financing issues, inspection disagreements, appraisal problems, or buyer hesitation can all derail a transaction. This isn’t always a reflection of the home or the seller. It’s part of real estate reality. Backup offers exist because of this uncertainty. How backup offers protect sellers Having a backup offer keeps momentum on your side. It signals to the primary buyer that there is continued interest, which can reduce the chance of aggressive renegotiation. If the first deal does fall apart, a backup offer can allow the transaction to continue without going back to market, saving time and stress. When backup offers are most useful Backup offers are especially helpful in balanced markets where buyers are cautious. They provide insurance without forcing a decision. They can also be useful when sellers are coordinating a purchase or want to avoid re-listing and restarting the showing process. What sellers should consider before accepting a backup It’s important to understand the terms of the backup offer, including timing and contingencies. Not all backups are equal. Some are stronger than others. A thoughtful review helps ensure the backup truly adds security rather than complexity. A planning-forward perspective Backup offers aren’t about mistrust. They’re about realism. Having a plan B often makes plan A stronger. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you want to understand how backup offers fit into your overall strategy, start here: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Realtor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andi.dyer
This question comes up because flooring sits right at the intersection of money, effort, and buyer psychology. You can live with worn carpet for years without thinking twice, but buyers experience it in a single walk-through, often while they are comparing three other homes that day. Flooring is one of the few features buyers literally feel underfoot, and that sensory experience affects their perception faster than most sellers expect. The short answer is that replacing carpet usually creates a cleaner, easier “yes” for buyers , while an allowance can work in certain situations but often introduces uncertainty that reduces urgency . The right choice depends on your home’s condition, your price range, and how buyers are behaving in your corner of the Bellingham and Whatcom County market. Why Flooring Has Outsized Impact Buyers make snap judgments at the entry and in the main living areas. Dated or stained carpet can quietly communicate “project,” even if the home is otherwise well-maintained. That mental shift matters because it changes how buyers negotiate. Once they view the home as a project, they start protecting themselves by mentally discounting their offer, adding contingency concerns, or planning future hassle. In a balanced market, buyers have more options. When they have options, they gravitate toward homes that feel easy. Flooring plays a big role in “easy.” Why Replacing Carpet Often Works Better Than Sellers Think Replacing carpet is rarely glamorous. It can feel annoying because it’s not a fun upgrade. But it often pays off because it removes a common reason buyers hesitate. New, neutral carpet can make the home feel brighter and more cared for, even if nothing else changes. It also helps photos look cleaner, especially in bedrooms and lower-light areas. That matters because the first showing is online now. If photos subtly signal “worn,” fewer buyers click, and fewer clicks means fewer showings, which can lead to a longer time on market. Replacing carpet also reduces negotiation friction. Buyers are less likely to ask for credits or concessions when the home feels move-in ready. Why Allowances Sound Good and Sometimes Underperform Flooring allowances feel logical from the seller side. You don’t have to spend money upfront, and the buyer can choose their style. The challenge is that buyers rarely value allowances at face value. Buyers often discount allowances because they are thinking about: The time and coordination required after closing The risk of surprises under the carpet Whether the allowance amount will actually cover replacement The inconvenience of moving furniture and living around a project Even when none of those risks are real, the perception of risk changes behavior. In practice, allowances can sometimes attract buyers who want to customize finishes. But they can also reduce urgency among buyers who prefer clarity, especially when those buyers have other options. When an Allowance Can Be the Smarter Choice There are times an allowance can make sense. If replacing the carpet would delay listing significantly, or if the carpet is dated but still clean and functional, an allowance can be a reasonable strategy. Allowances also make more sense when the home is already positioned as having opportunities for personalization, and the pricing reflects that. The mistake is offering an allowance while still pricing the home like it is fully updated. That combination often causes buyers to feel like they are paying top-of-market while also inheriting work. The Decision That Usually Produces the Best Outcome The best question is not “Which option costs less?” The best question is: Which option makes it easiest for the right buyer to say yes without hesitation? If worn carpet is one of the only visible distractions, replacing it may produce a stronger outcome than you’d expect. If the home is already a project, an allowance may fit the overall strategy. Either can work. The goal is to align the choice with your pricing, your timeline, and what buyers in your market segment are responding to right now. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you’re weighing improvements and want to choose what actually supports your sale, start here: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Realtor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andi.dyer
This is one of the most valuable questions a seller can ask, because it protects you from two expensive mistakes: doing too little and creating buyer doubt, or doing too much and spending money that never returns. The short answer is: fix issues that reduce buyer confidence and distract from the home’s strengths, and be cautious about large upgrades that buyers will mentally discount anyway. In Bellingham, buyers tend to be observant. They notice quality. They also notice uncertainty. A strong preparation plan is not about making your home look like a magazine. It’s about making it feel cared for and easy to move into. The Real Goal of Pre-Listing Work Sellers often think the goal is to make the home perfect. Most buyers are not looking for perfect. They’re looking for “I can see myself here,” and “I’m not going to be blindsided.” That means the most valuable fixes are often boring. They are the small, visible maintenance items that signal competence and care. When those are handled, buyers stop hunting for problems and start paying attention to the lifestyle and the layout. Why Some Fixes Pay Off More Than Others In a balanced market, buyers have options. They can compare. So anything that feels like an immediate hassle can push them toward the next listing. Visible paint touch-ups, functional fixtures, clean and bright lighting, and a home that feels fresh and odor-free tend to improve buyer perception quickly. This is not about luxury. It’s about removing friction. The opposite is also true. When buyers see obvious deferred maintenance, they often assume there is more they cannot see. That assumption can lead to lower offers or more cautious terms. The Trap of Big Remodels It is very common for sellers to ask whether they should remodel a kitchen, update a bathroom, or replace everything before selling. Sometimes that makes sense, but many times it doesn’t. Large remodels rarely return their full cost right before a sale, especially if the design choices are personal or trendy. Buyers often mentally price in what they would change anyway. And if the remodel delays listing by months, you may lose the opportunity to sell during a window that actually fits your life. A more strategic approach is to focus on cleanliness, function, and neutral presentation, then price the home appropriately based on its current state. Curb Appeal and First Impressions Matter in Whatcom County Many Bellingham and Whatcom County buyers care deeply about how a home feels as they arrive. The entry, the exterior condition, and the general sense of upkeep set the tone for the entire showing. That does not require expensive landscaping. It requires intentionality. A clear path, tidy plantings, clean windows, and a welcoming entry can shift the whole emotional response. When This Advice Changes There are times when more significant work is necessary. If there are safety issues, active leaks, electrical concerns, or visible damage, those need to be assessed and handled strategically. These are not areas where guessing helps. The right plan depends on your goals, your timeline, and what the market is likely to reward in your price range and neighborhood. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you’re trying to decide what is worth your time and money before listing, a planning-first approach helps: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Realtor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andidyerrealestate
This question usually shows up when life planning meets real estate. People aren’t asking because they’re impatient. They’re asking because they’re coordinating work schedules, moves, school timing, travel, family logistics, or simply trying to avoid chaos. The clear answer is: the timeline to sell a home in Bellingham includes three phases, and most stress comes from only thinking about one of them. Those phases are preparation, time on market until a contract is accepted, and time from contract to closing. Understanding the whole timeline is what helps you plan with confidence. Phase One: Preparation Is Often the Longest Part Many homeowners underestimate the amount of time it takes to get a home ready, not because they’re procrastinating, but because preparation has hidden layers. It’s rarely just cleaning. It’s deciding what stays and what goes. It’s sorting through storage, garages, sheds, and closets. It’s choosing which repairs are worth doing and which are not. It’s coordinating vendors. It’s paperwork. It’s also the emotional process of detaching from a place that holds years of life. For longtime homeowners in particular, preparation is not a weekend project. It’s a sequence of decisions. The good news is that when this phase is handled thoughtfully, it reduces friction later. Phase Two: Time on Market Is More About Buyer Response Than Days In a balanced market, buyers behave differently than they did during the frenzy years. They compare more, they hesitate more, and they ask better questions. That does not mean your home is flawed. It means the buyer pool is acting like buyers again. Time on market depends heavily on pricing and presentation. Homes that feel easy to say yes to tend to get meaningful attention early. Homes that feel like a project, or are priced ahead of where buyers are responding, tend to take longer. A healthier way to evaluate this phase is to focus less on the calendar and more on signals. Are you getting showings? Are buyers staying in the home long enough to imagine living there? Are there repeated comments about the same issue? Feedback is data. Data guides adjustments. Phase Three: Contract to Closing Is a Separate Timeline Once you accept an offer, the sale is not finished. It moves into a process that includes inspections, appraisal, financing, and escrow coordination. Many closings in Whatcom County land in the 30 to 45 day range, but the exact timeline depends on the buyer’s financing type, the complexity of the transaction, and what is discovered during inspections or appraisal. The key planning lesson is this: even when a home goes under contract quickly, you still need time for the closing process. When This Timeline Changes There are scenarios that can extend the overall timeline. Some are predictable and some are not. If a home needs repairs that become negotiation points, that can add time. If appraisal issues arise, that can add time. If the buyer’s financing is more complex, that can add time. If you are coordinating your sale with another purchase, the timeline may be structured around aligning those steps. None of these scenarios are unusual. They simply highlight why planning with flexibility is calmer than planning with a rigid date that cannot move. A Reframe That Reduces Stress Instead of asking “How fast can I sell?” a more useful question is “How do I create a sale that feels predictable and controlled?” That usually comes from preparation, accurate pricing, and a clear understanding of what matters most to you: speed, net, simplicity, or terms. In many cases, the smoothest transactions are not the fastest. They are the ones where the seller had a plan before the listing ever went live. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you’re trying to plan your timing and want a realistic view of what selling could look like in your specific situation, this is a helpful first step: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Realtor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andi.dyer
When sellers hear the word “negotiation,” many picture a battle. Someone wins. Someone loses. The goal is to push as hard as possible and come out ahead. That framing is common, but it’s also one of the reasons negotiations so often create stress, resentment, or regret. In real estate, the strongest negotiations don’t feel like victories. They feel resolved. Why the “win” mindset creates unnecessary risk A negotiation focused on winning tends to narrow attention. Sellers may fixate on a single term, a dollar amount, or a point of principle, while missing how the rest of the deal is structured. That tunnel vision can feel empowering in the moment but risky in practice. Deals rarely fall apart because one side didn’t push hard enough. They fall apart because trust eroded, expectations diverged, or uncertainty wasn’t addressed early. A win-at-all-costs mindset often accelerates those breakdowns. What effective negotiation actually prioritizes Strong negotiation prioritizes clarity over force. It looks at the entire structure of the agreement, not just the headline number. Timing, contingencies, financing strength, inspection scope, and communication tone all matter because they influence whether the deal will actually reach closing. The best agents evaluate negotiation points through a simple lens: Does this reduce risk, or does it introduce it? That question leads to very different decisions than “Can we squeeze a little more here?” Why calm negotiations produce better outcomes Buyers respond to steadiness. When sellers feel grounded and informed, negotiations tend to stay productive. Requests are evaluated thoughtfully instead of defensively. Counteroffers feel measured instead of reactive. This doesn’t mean giving in. It means choosing battles that matter and letting go of ones that don’t. That selectivity often preserves leverage better than constant pressure. How good agents prepare sellers for negotiation before it starts The most effective negotiation happens before the first offer arrives. Strong agents talk through likely scenarios in advance. They explain where buyers typically push, where flexibility helps, and where firmness is appropriate. This preparation allows sellers to make decisions with intention instead of surprise. When a request comes in, it’s familiar territory, not a shock. Why fewer regrets is the real measure of success Sellers rarely regret not pushing harder on a minor point. They regret deals that felt tense, unpredictable, or unnecessarily stressful. They regret decisions made in haste or under pressure. Good negotiation leaves sellers feeling respected, informed, and confident that the outcome aligns with their goals, even if every detail wasn’t perfect. A planning-forward reframe Instead of asking, “How do we win this negotiation?” try asking: “Which choices here protect my outcome and reduce the chance of regret later?” That shift changes everything. ABOUT THE AUTHOR Andi Dyer is a Bellingham-based real estate broker with RE/MAX Whatcom County, specializing in helping longtime homeowners and sellers make confident, well-informed decisions. With a calm, data-driven approach and strong negotiation expertise, Andi focuses on protecting equity, reducing stress, and guiding sellers through the process with clarity and care. 📍 Serving Bellingham and all of Whatcom County 📞 Call or text: 360 • 734 • 6479 📧 Email: andi [at] andidyer [dot] com If you want negotiation guidance that prioritizes clarity and clean outcomes, start here: 👉 Start with a low-pressure home value and seller planning tool here: https://www.andidyerrealestate.com/seller/valuation/ Zillow: https://www.zillow.com/profile/AndiDyer Realtor.com: https://www.realtor.com/realestateagents/andi-dyer Homes.com: https://www.homes.com/real-estate-agents/andi-dyer Google Business Profile: https://g.page/andi-dyer-real-estate Facebook: https://www.facebook.com/AndiDyerRealEstate Instagram: https://www.instagram.com/andi.dyer
