This is part 2 of my report on my experience of selling the property without a listing broker. Similar transactions are done by more than 1500 people every day, but still, since we were using DomoVendo’s resources we wanted to document and share our experience.
In the first post, we described how we talked about dealing with buy-side agents, preparing the place for sale and placing information in the MLS.
Now, the update: The property is under contract with the buyer working on getting a mortgage. It is time to reflect on issues such as:
- My experience with agents soliciting the listing, and
- The value of the guidance i got from my “mentor” agent.
Pricing: it was tricky since it is a hot market and the comparable sales are rare. I did my research and also listen to some of the sell side realtors that tried to get my listing: they had a hard time justifying the price I was asking. Still, I felt that the demand was there and wanted to press on. The way I justified the price was through the cash flow the property generated. I put together a fairly detailed spreadsheet accounting for all the revenues and costs and used it to illustrate that the property would be a pretty good investment. I am I sure that I got the highest possible price? Probably not, but the offer that I got was good enough for me to move forward. What I would do differently is to hire a licensed appraiser to give me another point of comparison. The cost is from $300 to $600 which is definitely worth it.
Listing agents: be prepared for a small avalanche of calls from trained agents trying to convince you to list your property with them. You can actually very easily prepare for that. I would recommend one of three way of dealing with them:
- If you do not want to talk to them, just tell them that you are an agent. That usually is a very effective way to stop any pitches.
- If you are in a mood to chat you can prepare by going to youtube and watching “star” agents teaching/training new agents on how to convince a for sale by owner seller to list his property with them by cold calling them. It is very entertaining. Check it out.
The value of the “mentor” agent/instructor: As I mentioned I subscribed for support from Dean Clark, a licensed agent based in Hoboken and a very nice guy. We had two phone conversation and several text chats in key moments of my transaction. He helped me to think about how to follow up on the open houses I had and how to go about dealing with multiple offers. I felt good reaching out to him because I knew that he would not try to BS me to just get me to agree to list the property with him. He did not reveal anything extraordinary, nor I experienced anything like that. All I wanted was a piece of mind that I have someone watching over my shoulder making sure I do not stupid mistakes.
That is all for now. I will update if there is anything worth updating.
Thanks for your interest.