Selling off-market in Union City, NJ

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Selling off-market in Union City, NJ

Boris Suchkov
Rental Property Investor · Santa Monica, CA · Member since 2018 · 45 posts · 22 votes

A family member has asked me to help sell a property, a triplex in Union City, NJ. It is currently fully rented. We want to try the off-market route before getting an agent and posting on the MLS. I want to do my research and evaluate the hassle/risk of facilitating the transaction myself versus the reward of avoiding the seller's agent fee and getting an education in the process.

What is the typical "order of operations" if we were to sell off-market to another investor? A recent example of a similar deal would be great!

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Yavuz Bayram
Realtor · Rutherford, NJ · Member since 2016 · 51 posts · 46 votes
5y

What you need to do initially is figure out a way to assess the value of the property you can do this by looking at comparable sales or you can ask an agent to help you with the valuation. I I don’t think they will mind I don’t personally I do it all the time.  

If you don’t price properly it will sit on the market for a long time the biggest mistake for sale by owners have is they have an over valuated view of the property in their mind. 

Then you need get a marketing plan together to see how you can reach all of the potential buyers that are interested in the area the first and most easiest is obviously listing it with pages such as Zillow as for sale by owner. Also you could use your network to personally contact people that may be interested in the property as well. 
 

Once you get through and find a buyer you can pass the deal on to the attorney to prepare the contract and should be fairly easy from there since you won’t have much involvement any longer. 

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  • Yavuz Bayram
    Realtor · Rutherford, NJ · Member since 2016 · 51 posts · 46 votes
    5y

    What you need to do initially is figure out a way to assess the value of the property you can do this by looking at comparable sales or you can ask an agent to help you with the valuation. I I don’t think they will mind I don’t personally I do it all the time.  

    If you don’t price properly it will sit on the market for a long time the biggest mistake for sale by owners have is they have an over valuated view of the property in their mind. 

    Then you need get a marketing plan together to see how you can reach all of the potential buyers that are interested in the area the first and most easiest is obviously listing it with pages such as Zillow as for sale by owner. Also you could use your network to personally contact people that may be interested in the property as well. 
     

    Once you get through and find a buyer you can pass the deal on to the attorney to prepare the contract and should be fairly easy from there since you won’t have much involvement any longer. 

    2Reply
  • Tony Nardini
    Lender · North Arlington, NJ · Member since 2017 · 19 posts · 7 votes
    5y

    I was born and raised in Union City.  Whereabouts is the property located? 

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    That's a terrible idea if you want to get them top dollar, although it will be harder to sell a fully rented place on the MLS if showings are hard with COVID, etc. You can still do ok off-market, but not without using an established wholesaler in the area. They will get a middle man fee. If you send me the details, I can run through my investor list, but almost everyone will be looking to house hack that and I expect that the rents are below market and it's impossible to evict so it's a tough sell in that case.

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  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Boris Suchkov - your best way to maximize your family’s money is:

    1. Interview several real estate agents in union city Nj and pick the one with the best marketing plan and negotiation skills. Someone with great negotiation skills will get you way more money than you expect or minimize repairs you are asked to perform. The best one IS NOT ALWAYS THE AGENT offering to list for the highest price. Just someone who instills you with confidence, is responsive, and can give you stories of how they competed offers against each other to maximize your $$$.

    2. LIST ON MLS with GREAT PICTURES and WALK Through Video (3D Matterport tour ideally). One practice is to schedule an open house tour date every 1-2 weeks like on Saturday from 12-2 and don't allow any other showings to minimize the stress on the tenant. Some occupied tenant properties do not allow showings until they've accepted your offer (because they've shown you everything with the walk through video or 3D Matterport tour). Avg cost for Matterport 3D is like $500-700 but you Will make a lot more because your showings won't be blocked 24/7 by covid afraid tenants and only interested parties will tour. I HATE multifamily listings with NO photos. I think the seller always loses out on some $$$.

    3. Make owner occupied an option - make it clear that you can get at least one tenant to move out if new owner requests (cash for keys?) so someone can apply for an OWNER Occupied loan (they're like 2.5% for 30 years and many people are looking for house hacking opportunities.) usually I ask for some kind of non refundable EMD if I have to get one or more tenants to move out prematurely. I sold an occupied duplex with an owner occupied loan but the lender almost didn't let him close. He had to swear he was going to move in within 60 days because both sides were occupied on the day of closing.

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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    @Boris Suchkov what's the condition of the property; will it require major repairs, turnkey, or somewhere in the middle?

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  • Nicolas Nuvan
    Real Estate Agent · Brooklyn & Queens · Member since 2020 · 49 posts · 22 votes
    5y

    Hey Boris, I'm sure you'll be able to find an investor to take the property off of your hands, the price is the variable. It really depends on if your tenants are actively paying and the condition of the home. You could always just list FSBO and give it your best shot with a real estate attorney.

    2Reply
  • Boris Suchkov
    OP
    Rental Property Investor · Santa Monica, CA · Member since 2018 · 45 posts · 22 votes
    5y

    @Shawn Mcenteer Turnkey, maybe minor cosmetic work.

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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    @Boris Suchkov Turnkey will get top dollar on MLS

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