6% commission assumption
Henry Washington always underwrites assuming 6% in realtor commissions as a worst-case scenario, even if he rarely pays the full amount.
Snapshot · BiggerPockets Real Estate Podcast
If House Flipping is “Dead,” How Is She Flipping 10+ Houses THIS Year?
Explore episode
Jul 15, 2026
Where this was said
Commissions and Closing Costs: How to Underwrite Them Right
At 12:27 · chapter starts 9:25
With ARV strategy covered, Henry shifts the conversation to costs — starting with commissions and closing costs. Dominique's biggest move of 2025 was getting her real estate license, which she says saves her at least 2.5% per listing — adding up to hundreds of thousands of dollars per year across a 10 to 12 deal annual pace [1] — Dominique Gunderson "2.5% agent commission savings: By getting her real estate license in early 2025, Dominique saved at least 2.5% on commissions per deal, add…" 10:25 . She also notes an unexpected benefit: direct access to buyer feedback that's nearly impossible to get secondhand from an agent. Henry takes a different approach, always underwriting a worst-case 6% total commission regardless of what he actually negotiates, keeping his offer prices anchored to the pessimistic scenario. On closing costs, Henry flags the most common and costly beginner mistake: only budgeting for sale-side closing costs [2] — Henry Washington "Closing costs on buy AND sell: A common flipper mistake is only budgeting closing costs for the sale — forgetting the purchase-side closing…" 13:19 . Forgetting purchase-side closing costs can be a several-thousand-dollar blindspot on every deal. His solution for newcomers who don't have historical data is to request a preliminary HUD statement from a title company using the property address.
Getting Your License Could Be Worth Hundreds of Thousands
Dominique Gunderson got her real estate license in early 2025 and it changed her business. Saving 2.5% on every listing adds up to hundreds of thousands of dollars per year across a 10–12 flip portfolio. The bonus: direct buyer feedback that sharpens every future renovation decision.
2.5% agent commission savings
By getting her real estate license in early 2025, Dominique saved at least 2.5% on commissions per deal, adding up to hundreds of thousands of dollars annually.
The Closing Cost Mistake That Wipes Out Flipper Profits
Most flippers only budget for closing costs on the sale. That's only half the picture. Failing to account for purchase-side closing costs is one of the most common and costly underwriting errors, quietly eroding margins that were already razor thin.
Closing costs on buy AND sell
A common flipper mistake is only budgeting closing costs for the sale — forgetting the purchase-side closing costs that also eat into profit.
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