I have a piece of comm. property (land) that I have reduced 20% in SC. How can I find a serious buyer quickly?

I have been with two realtors with no luck. Both have seemed to just let it sit without contacting anyone. I know the economy is tough right now for real estate. However, this property is in a growth corridor near the state capital and I am unsure what to do next, without having to go through yet another realtor. Any suggestions are welcome.
In Selling Property - Asked by James C. - Oct 17, 2008
Report Abuse
Answer this Question

Answer(s)

Juan G.
Broker/Agent
Ontario, CA

Its easy for landlords to say that there brokers let it sit. I am a listing broker and have actually recently reduced the number of my listings to not waste time with unrealestic landlords. Are you offering enough incentive to the buyers brokers? Are you realistic in pricing? Is the land really as good as you tell yourself it is? Were you a pain in the ass for the brokers to listen to (whiney,rude,pompous) so that they did not want to work for you. If I was you I would just do temporary ground leases and weather the storm because no smart groups (except for owner users were who prudent savers, or large REITs) are buying commercial land right now.

Oct 22, 2008
Report Abuse
Ian J.
Broker/Agent
Ocala, FL

I agree with Juan. I had a RWA Buyer with cash looking at 2200 acres in Fl. The Seller was stuck on $48M because of an inappropriatly calculated appraisal. CMA revealed $6.5M recent sales figures for similar parcels. We offered $7M and was turned down flat. Problem......unreasonable Seller.

Nov 20, 2008
Report Abuse
Ian J.
Broker/Agent
Ocala, FL

James, one other item. Are you sure the other agents were Realtors???? Do you know the difference between a Realtor and a Sales Associate???? Bigger difference than you probably know. Find out, I bet the other two guys you hired were just State licensed Sales Associates and not the real McCoy. Also, since you must have property classed as Commercial, you shoud have gone to the top professionals in that area. Find a CCIM in your local market with the link below. When you have a CCIM working for you, you will think you're in a different galaxy.

Nov 20, 2008
Report Abuse
Chris S.
Broker/Agent
Coeur D'alene, ID

It really does not matter how much you reduce the price from the original list price, what matters is the market value. I've seen sellers reduce their list price by 50% and still not sell because the original list price was 5x the market value.
Bottom line, if the price is appropriate for the current market, the property will sell but it might take some time. In my market, I would anticipate that if land is priced correctly you should expect 18-24 months to sell. So if you need to sell fast, you better list the price at 50% of market value!
chris.schreiber@century21.com

Jan 16, 2009
Report Abuse
Lee A.
Owner/Investor
Bridgeport, CT

James, your best bet in the current market is either to owner-finance the property or to joint venture with a developer.
The real estate brokerage business, like the stock brokerage business, depends on cash changing hands. This model creates havoc with real estate because it increase the costs for everyone involved, for example, purchase price goes up for the buyer, and the seller has to pay capital gain tax.
With today's technology, and sites like Loopnet.com, you don't need a Realtor or CCIM or anyone else. What you need is to be very clear about the "must have" and the "nice to have" in your sale. As long as you are flexible to either let go of too many "must have's" or at least are willing to defer those "must have's" to the time when market comes back, you would be fine.
Please allow me to cite an example. I am working on my own commercial property sale. The agreed upon price in August, 2008 is the same. I have increased the income of the property, but I am still working with the buyer with the same sales conditions even though the contract is long expired. I have a choice of refinancing the property at a higher valuation, but I am giving one one month to this buyer to close. After that I will refinance and will see how it goes.
In summary, if you are able to eliminate bank from the equation, you will be able to sell the property in short period of time.

Mar 1, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question