selling raw land - Posted by j harrell

Posted by Zee, of PA on April 26, 2000 at 01:11:18:

Forgive me because I am new at this and unsophisicated.

But could your price be too LOW, and therefore perceived as the land having something wrong with it that the seller is not asking what it is worth?

Why not list it at $5 for the next 90 days and see what happens?

At the very least, some potential buyer will come around out of curiosity to find out what there is to this land that the seller is asking SO MUCH!

selling raw land - Posted by j harrell

Posted by j harrell on April 24, 2000 at 21:29:43:

I need help in trying to market land I bought at tax sale.
I have had it listed for 1 year with commercial broker and
recieved only 1 offer, which was too low.
The property is 13 acres half commercial and half residential. Possible rezoned multi-family.and has been listed with all these options. I have suggested 1031
trade, still nothing. What about borrowing against
land and buying income property until land sells?
If this can be done who would I contact about loan?
The land is free and clear. What percentage could I
borrow? Any help would be greatly appreciated.

Thanks
John

Re: selling raw land - Posted by j harrell

Posted by j harrell on April 26, 2000 at 22:47:07:

Thanks everyone for suggestions. I’ll give some of them a try.
John

Re: selling raw land - Posted by Eric C

Posted by Eric C on April 26, 2000 at 01:47:34:

Hi John -

Selling raw land can be difficult at times. I consider myself to be an excellent salesman, but I still have some land that I’ve had for sale since 1987!

Hey, don’t get discouraged. Ray Alcorn posted a little about zoning and subdivisions a while back. Do a search and check his post out.

In the meantime, we seem to have some things in common. I own property in Central Texas, I’ve got land for sale, I’ve purchased property at tax sales in the past, and I’m looking for more RE to buy!

Keep us posted. Good luck,

Eric C

There is a problem with a year old listing! - Posted by David Krulac

Posted by David Krulac on April 25, 2000 at 20:04:09:

I have heard some say that any property. properly advertised that hasn’t sold in 90 days is overpriced.
There would seem to be some problem, even in a down markey property sells, but it must be well priced and view as a good buy by the buyer.(say that 3 times fast)
Commercial property usually does not sell as quickly as residential, so that may account for some of the time.
What is the property worth? What do you base that value on? What state are you in? Do you need a Quiet Title action/Quit Claim Deed to clear the title?
I would recommend a MAI appraisal, it will cost a little but you can use it as a selling tool, by telling the potential buyers “here’s a professional evaluation of the worth of this property.” Sometimes the appraisel can even be used by the buyer’s bank for financing.
David Krulac
www.centralpennlots.com

Re: selling raw land - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on April 24, 2000 at 21:53:29:

j,
It is possible to borrow against vacant land, but…
put yourself in the position of the lender. The first question is going to be where is the money going to come from to repay the loan. Most of the time vacant land does not produce income, usually quite the opposite. That said you may have sufficient income from other sources to impress a lender.
I would suggest taking a more proactive approach. Consider offering some crestive financing of your own, or make a lot of noise about taking a trade-in to get things moving. This might cost less than attempting to get financing…ED

Re: selling raw land - Posted by ray@lcorn

Posted by ray@lcorn on April 26, 2000 at 14:20:54:

The best way I know to add value to land without building anything is to change the zoning. Half and half on 13 acres is a problem. Solve the problem and your potential buyer pool will double.

That post I wrote on zoning is at

http://www.creonline.com/wwwboard/messages/68711.html

and it will be the basis for the next article to be posted to the commercial newsgroup.

And speaking of which… What Eric, you can’t find your way over to the new ComRE forum??? I’ll make it easy… its at

http://www.creonline.com/commercial-real-estate/wwwboard5/index.html

Huh.

And I thought you were a kindred spirit! (big smile) I was counting on your help in answering questions… I’ve got to go to lunch sometime!

Come on over… the water is nice and warm!!!

ray

Re: There is a problem with a year old listing! - Posted by j harrell

Posted by j harrell on April 25, 2000 at 22:29:31:

The property is located in central Texas.I have a title
policy on land.the land next to mine sold for $2.34
a sq. ft. 2 years ago. But was only 1 acre. Mine is on market at $1.75. The land within 1 mile is selling above $6.00 per ft. Again based on smaller tracts.
So I feel good about price. Since I had property
listed with commercial broker they felt price was below market. Maybe this helps with possible suggestions

PS a 1031 may not help round up a buyer, - Posted by David Krulac

Posted by David Krulac on April 25, 2000 at 20:17:27:

as some will not understand, and some will think that it only benefits the seller.
David Krulac
www.centralpennlots.com

Title policy is good, you might try some other things… - Posted by David Krulac

Posted by David Krulac on April 26, 2000 at 16:12:12:

Smaller parcels do tend to sell for more per acre than larger parcels, even residential. A one acre homesite might sell for $30,000, while a 10 acre homesite will sell for $100,000, One is at $30,000 an acre and one is at $10,000 in the same developemnt/subdivision created at the same time by the same owner.

Perhaps you can benefit from the higher per acre prices of smaller acreage by subdividing your self. Since it is zoned two different zonings maybe potential buyers are only interested in one zoning.

Does the land have public water, sewer, and other utilites? Is there sewer capacity? What is the traffic count? some businesses require certain traffic counts and highway visibility. How about leasing the land to a builder/developer for whatever is the highest and best use. For example if office building is the highest and best use and you don’t want or can’t build one yourself, why not lease the land and get land rent for the next 99 years.

What about some short term use such as mini storage units until the growth catches up to you. A used car lot or mobile home sales lot are other good short term uses. be creative as you can. good luck

David Krulac
www.centralpennlots.com
I still recommend a competent appraisel like MAI.