How I sold a home 40 miles away for full price in 2 days
A fairly common objection I get from people is that I don’t live very close to their home for sale. Which begs the question, how close does a real estate agent need to live in order to successfully sell your house?
I don’t think it really matters, to be honest. When it comes to actually helping get the house sold, it makes no difference if I live five minutes away from the property or 1 hour. With that being said, I can see some perceived advantages to home sellers and I will discuss that, but first, let me know tell you about how I sold a house during Christmas (worst time to sell, right?) for FULL price in 2 days.
We Raised the Bar
My investor and I picked up a nice property in Newport News, near Denbigh High School off Warwick Boulevard. We closed on it early September, and he whipped the house into shape very quickly, and we had it on the market before Thanksgiving. Our original list price was going to be $275,000, which was comparable with homes in the neighborhood. But this house was unique. It was a 5 bed, 4 bath house on a huge lot – so my investor wanted to “push the comps” in the neighborhood. We listed it for $315,000. During a cold, nasty time of year – when the market generally cools off – we had agents show the property and got a full price offer within 2 days. Of course, we accepted. The property sold right before Christmas, a delight to the buyer and the investor. At the time, I believe that was the highest price any home in the neighborhood had ever sold for. We went through the normal home phase – home inspection, appraisal, termite inspection, and actually some other items. This was the fastest flip I’ve ever seen considering the magnitude of the rehab, which was upwards of $100,000.
I was the listing agent representing the seller and I helped him sell the house from Virginia Beach, nearly 40 miles away from the property. Now, I knew the property – I helped him list it, reviewed comps, and had been to the property to list it. But me living near the listing had zero impact on the sale on the home. As often discuss, the power of the MLS was a big contributor to the house selling. A buyer’s agent brought a pre-approved buyer and they bought the house. That agent and her buyer did not need to provide local market knowledge. That agent did, which is why she earned a commission.
Once I listed the house, part of my job – but not all – was done. Half the battle, some say, is getting prepared. We put a competitive price and presented the house well. Then it was time to negotiate, which we did by phone and through digital written contracts. I communicate with my investor a lot through text as well. There was a home inspection, but the buyer’s agent attends the home inspection (since they’re paying for it). And we had the appraisal, but the appraiser’s have their own access to homes (which is not widely known). There was no need for me to get there for the appraiser because I would likely just get in the way. As we drew closer to closing, there was just more phone calls and communication with the closing attorney. But this was all done remotely.
As an agent in Hampton Roads, I service the entire region – from Virginia Beach to Smithfield to Newport News. I am usually in every locality at least once or twice a week, so I do make myself available if necessary to be at a property, but it’s usually not required. Which is why I don’t charge as much money as other agents, allowing you to pocket a ton of money when you sell your house. I help people get top dollar everywhere and it has no bearing on whether I live close to the property whatsoever.
I think an important point to consider is what you’re paying for: why do you want your agent to live close to your property, specifically?
Here are some reasons I believe it’s important for Home Sellers That Their Agent for their agent to live close to the home. I’m going to provide what I consider to be thoughtful and respectful reasons against this type of thinking with a rebuttal.
My Agent Can Monitor and Check The Property
Some people believe if their agent lives close to their house, they can monitor it on a regular basis. Like let them know if the grass is getting high, a window is broken, or just to make sure it’s looking good. First off, most agents don’t regularly drive by your property to monitor it because they know what’s not a good use of their time, whether they tell you that or not. But does monitoring a property for sale regularly a good use of money? When your house is for sale, it has an interactive lockbox that alerts you when agents come and go. You can easily get feedback from the agent about the property, and they will tell you if anything odd stands out. Also, this only applies to vacant homes. If you live in your home, this notion of having the agent living near the listing is a moot point. Homeowners could also get an inexpensive security camera if they are really concerned about security – and that would be 24/7, and much cheaper.
Local knowledge (and local building codes/laws)
This one sounds really good, actually. But what does having an agent living close to your house have to do with “local market knowledge.” It’s unexplainable. Perhaps you think your agent will “sell the location.” Who is your agent selling the location to? All buyers are going to have an agent who is providing local market knowledge.
I think a misunderstanding of a listing agent feeds into some of these fallacies. A listing agent is not directly selling the house, they’re simply listing and representing the home seller. If you think your listing agent is going to directly sell your house, 99 out of 100 times that is just simply not the case. The listing agent rarely comes into contact with the eventual buyer.
With regards to understanding the local building codes, permitting processes, and more – an agent can understand these matters no matter what city they live in. I think this only applies on the state level (i.e. having a Virginia real estate agent help you vs. a North Carolina agent), and even then, that may not matter. How often will the average home seller need to deal with the local county building department office? Most of the time, never. If you are in a niche area or city and you are representing a builder or a large-scale project, such as an apartment complex, I can see where having an agent knowing how to navigate the complex nature of use-permits and zoning regulations to help facilitate the sale. But for the high majority of home sellers, this never matters. Never.
The Listing Agent May Already Have Buyers
You may think if an agent works and lives close by the listing you have, he may also have buyers lining to buy the house. If that is the case – then he would not even need to list your home for sale to be honest. He could just provide the buyer to you directly and earn his commission that way. Most of the time, as referenced in the above point, the listing agent rarely ever represents the buyer in the sale of your home. And do you want them to, because who’s interest do they have heart? It may be theirs because they’re getting TWO commissions, which is called dual agency and illegal in some states. It’s legal in Virginia though.
Neighborhood…expert?
When I sold my first home and was not an agent, I interviewed an agent that had sold the house next to mine. We had IDENTICAL homes and I thought, well, if she could get the seller’s a good price, then she should be able to do that for me too, right? Well yes, probably, but that really is not the right question to ask which I quickly learned. I did not use her to sell my home – I used someone else who lived 15 miles from me and got full price.
I think it’s a natural instinct to use an agent that has sold other homes in the neighborhood; there’s just some sort of built in proof that makes you feel good that the agent can sell your house. And I get it. It kind of makes sense. But why? The listing agent is not selling the house; the buyer’s agent is.
This one is hard to explain why people perceive it as important, but it is. When in all reality – it makes no difference. But real estate is emotional, and this one tugs at people’s emotions very hard and so agents that have sold homes in your neighborhood must be worth their high price tag and experience. Perhaps it serves to validate the agent.
Peace of Mind
I do think having an agent who lives close to your listing, especially someone who grew up in the area for a long time, matters to some home sellers. But why? I think it validates the agent or somehow provides a proof that the agent is not a fly-by-night-agent. This agent is ingrained in the community, has a vested interest in the community, and is a real human being.
My experience is most people want top dollar from a trusted adviser, and on their timeline. Being extremely local is nice, but not a necessity.
Another thought: if you are having difficulty or have service-related issues and you want to discuss them with your agent, you know where to find them. You meet them in their office and have a face-to-face connection; that’s a tangible feeling that may be important, but again, highly unnecessary.
Do you want the best listing service and agent, or the closest one to your house?
But, How Far Is Too Far for My Agent to Live My House?
Would an agent in Richmond helping you sell your house in VA Beach be effective? Probably could be, but that gets to be a bit of a physical stretch and probably would raise your fees simply due the travel component. People use financial advisers from around the world. Accountants, too. Having someone close enough to you that is locally and available should you need to meet face to face just to have a conversation is mostly what you need.
It's Your House
At the end of the day, you've got to feel comfortable when selling your house. It's an emotional transaction, and you want to be even-keeled. If that means having someone that lives in your neighborhood, then that works, even it if does not mean maximizing how much money you make when selling. Several deals don't work out over a just a few thousand dollars, which is one of the many reasons we close a lot of deals.
But understanding what you need is probably the most important aspect to deciding if an agent will be good for you. Once you know that, then you will be best able to decide based upon the variety of listing service options you have.
I don’t think it really matters, to be honest. When it comes to actually helping get the house sold, it makes no difference if I live five minutes away from the property or 1 hour. With that being said, I can see some perceived advantages to home sellers and I will discuss that, but first, let me know tell you about how I sold a house during Christmas (worst time to sell, right?) for FULL price in 2 days.
We Raised the Bar
My investor and I picked up a nice property in Newport News, near Denbigh High School off Warwick Boulevard. We closed on it early September, and he whipped the house into shape very quickly, and we had it on the market before Thanksgiving. Our original list price was going to be $275,000, which was comparable with homes in the neighborhood. But this house was unique. It was a 5 bed, 4 bath house on a huge lot – so my investor wanted to “push the comps” in the neighborhood. We listed it for $315,000. During a cold, nasty time of year – when the market generally cools off – we had agents show the property and got a full price offer within 2 days. Of course, we accepted. The property sold right before Christmas, a delight to the buyer and the investor. At the time, I believe that was the highest price any home in the neighborhood had ever sold for. We went through the normal home phase – home inspection, appraisal, termite inspection, and actually some other items. This was the fastest flip I’ve ever seen considering the magnitude of the rehab, which was upwards of $100,000.
I was the listing agent representing the seller and I helped him sell the house from Virginia Beach, nearly 40 miles away from the property. Now, I knew the property – I helped him list it, reviewed comps, and had been to the property to list it. But me living near the listing had zero impact on the sale on the home. As often discuss, the power of the MLS was a big contributor to the house selling. A buyer’s agent brought a pre-approved buyer and they bought the house. That agent and her buyer did not need to provide local market knowledge. That agent did, which is why she earned a commission.
Once I listed the house, part of my job – but not all – was done. Half the battle, some say, is getting prepared. We put a competitive price and presented the house well. Then it was time to negotiate, which we did by phone and through digital written contracts. I communicate with my investor a lot through text as well. There was a home inspection, but the buyer’s agent attends the home inspection (since they’re paying for it). And we had the appraisal, but the appraiser’s have their own access to homes (which is not widely known). There was no need for me to get there for the appraiser because I would likely just get in the way. As we drew closer to closing, there was just more phone calls and communication with the closing attorney. But this was all done remotely.
As an agent in Hampton Roads, I service the entire region – from Virginia Beach to Smithfield to Newport News. I am usually in every locality at least once or twice a week, so I do make myself available if necessary to be at a property, but it’s usually not required. Which is why I don’t charge as much money as other agents, allowing you to pocket a ton of money when you sell your house. I help people get top dollar everywhere and it has no bearing on whether I live close to the property whatsoever.
I think an important point to consider is what you’re paying for: why do you want your agent to live close to your property, specifically?
Here are some reasons I believe it’s important for Home Sellers That Their Agent for their agent to live close to the home. I’m going to provide what I consider to be thoughtful and respectful reasons against this type of thinking with a rebuttal.
My Agent Can Monitor and Check The Property
Some people believe if their agent lives close to their house, they can monitor it on a regular basis. Like let them know if the grass is getting high, a window is broken, or just to make sure it’s looking good. First off, most agents don’t regularly drive by your property to monitor it because they know what’s not a good use of their time, whether they tell you that or not. But does monitoring a property for sale regularly a good use of money? When your house is for sale, it has an interactive lockbox that alerts you when agents come and go. You can easily get feedback from the agent about the property, and they will tell you if anything odd stands out. Also, this only applies to vacant homes. If you live in your home, this notion of having the agent living near the listing is a moot point. Homeowners could also get an inexpensive security camera if they are really concerned about security – and that would be 24/7, and much cheaper.
Local knowledge (and local building codes/laws)
This one sounds really good, actually. But what does having an agent living close to your house have to do with “local market knowledge.” It’s unexplainable. Perhaps you think your agent will “sell the location.” Who is your agent selling the location to? All buyers are going to have an agent who is providing local market knowledge.
I think a misunderstanding of a listing agent feeds into some of these fallacies. A listing agent is not directly selling the house, they’re simply listing and representing the home seller. If you think your listing agent is going to directly sell your house, 99 out of 100 times that is just simply not the case. The listing agent rarely comes into contact with the eventual buyer.
With regards to understanding the local building codes, permitting processes, and more – an agent can understand these matters no matter what city they live in. I think this only applies on the state level (i.e. having a Virginia real estate agent help you vs. a North Carolina agent), and even then, that may not matter. How often will the average home seller need to deal with the local county building department office? Most of the time, never. If you are in a niche area or city and you are representing a builder or a large-scale project, such as an apartment complex, I can see where having an agent knowing how to navigate the complex nature of use-permits and zoning regulations to help facilitate the sale. But for the high majority of home sellers, this never matters. Never.
The Listing Agent May Already Have Buyers
You may think if an agent works and lives close by the listing you have, he may also have buyers lining to buy the house. If that is the case – then he would not even need to list your home for sale to be honest. He could just provide the buyer to you directly and earn his commission that way. Most of the time, as referenced in the above point, the listing agent rarely ever represents the buyer in the sale of your home. And do you want them to, because who’s interest do they have heart? It may be theirs because they’re getting TWO commissions, which is called dual agency and illegal in some states. It’s legal in Virginia though.
Neighborhood…expert?
When I sold my first home and was not an agent, I interviewed an agent that had sold the house next to mine. We had IDENTICAL homes and I thought, well, if she could get the seller’s a good price, then she should be able to do that for me too, right? Well yes, probably, but that really is not the right question to ask which I quickly learned. I did not use her to sell my home – I used someone else who lived 15 miles from me and got full price.
I think it’s a natural instinct to use an agent that has sold other homes in the neighborhood; there’s just some sort of built in proof that makes you feel good that the agent can sell your house. And I get it. It kind of makes sense. But why? The listing agent is not selling the house; the buyer’s agent is.
This one is hard to explain why people perceive it as important, but it is. When in all reality – it makes no difference. But real estate is emotional, and this one tugs at people’s emotions very hard and so agents that have sold homes in your neighborhood must be worth their high price tag and experience. Perhaps it serves to validate the agent.
Peace of Mind
I do think having an agent who lives close to your listing, especially someone who grew up in the area for a long time, matters to some home sellers. But why? I think it validates the agent or somehow provides a proof that the agent is not a fly-by-night-agent. This agent is ingrained in the community, has a vested interest in the community, and is a real human being.
My experience is most people want top dollar from a trusted adviser, and on their timeline. Being extremely local is nice, but not a necessity.
Another thought: if you are having difficulty or have service-related issues and you want to discuss them with your agent, you know where to find them. You meet them in their office and have a face-to-face connection; that’s a tangible feeling that may be important, but again, highly unnecessary.
Do you want the best listing service and agent, or the closest one to your house?
But, How Far Is Too Far for My Agent to Live My House?
Would an agent in Richmond helping you sell your house in VA Beach be effective? Probably could be, but that gets to be a bit of a physical stretch and probably would raise your fees simply due the travel component. People use financial advisers from around the world. Accountants, too. Having someone close enough to you that is locally and available should you need to meet face to face just to have a conversation is mostly what you need.
It's Your House
At the end of the day, you've got to feel comfortable when selling your house. It's an emotional transaction, and you want to be even-keeled. If that means having someone that lives in your neighborhood, then that works, even it if does not mean maximizing how much money you make when selling. Several deals don't work out over a just a few thousand dollars, which is one of the many reasons we close a lot of deals.
But understanding what you need is probably the most important aspect to deciding if an agent will be good for you. Once you know that, then you will be best able to decide based upon the variety of listing service options you have.