5 Mistakes to Avoid When Selling Your Land | Mike Waseen, john greene Commercial

MISTAKES TO AVOID WHEN SELLING YOUR LAND

john greene Land Mike Waseen

01NOT HIRING A BROKER THAT SPECIALIZES IN LAND

A license doesn't mean expertise.

A licensed real estate agent in the state of Illinois can broker any type of real estate transaction. However, there are so many real estate asset classes it is impossible to be competent in all of them. As the saying goes; "Jack of all trades, master of none." That's why in real estate you see asset class specialization.

The largest class of real estate, residential, attracts the largest number of real estate agents While many agents choose to focus on the commercial side of the business which encompasses retail, office, industrial, and land.

When it comes to selling your land, your best bet is to work with a land specialist. Refrain from hiring the residential agent that you know or are related to. I know this advice may feel self serving because I am a land specialist, but I speak from experience when I say that I have seen many clients represented by a residential agent in a land transaction much to their detriment.

02

NOTUNDERSTANDING HIGHESTANDBESTUSE

ZONING AND LAND USE

One of the key nuances in maximizing the value of your sale is not just to think about what the current use of the land is, but rather the potential future uses of the land. What is the current zoning of the parcel? Is there flexibility in the zoning? Is the municipality open minded to variances and alternate land uses? Are they pro development? Is the parcel in the path of development?

The reason land use is so important is that different buyers have different valuations for raw land. An industrial or residential developer, builder, or investor will have higher returns on a land parcel than a farmer will, and therefore are willing to pay a higher price/acre. Even when it comes to pure agricultural land, the quality of the soil will have a large impact on the value of the parcel and its marketability.

A NETWORK OF DEVELOPERS, BUILDERS, AND INVESTORS

When interviewing a potential broker to assist you with your land sale, make sure to ask about that broker’s network. In order to maximize the value of your land, you will want that broker to have the right Rolodex to call on. Some key people in that Rolodex are:

Residential homebuilders developers, and investors

Industrial developers and investors

Municipal figures that can influence land use like mayors, city planners and managers, alderman, council members, and economic development coordinators

Large farming operators

MIKE WASEEN, JOHN GREENE LAND

03WEAK MARKETING

There is no magic bullet when it comes to selling a property. The truth is that buyers are everywhere. They are searching online. They are driving around. They are talking to brokers. The key is that the marketing of your property should be everywhere too.

I look at property marketing as having 3 components.

TECHNOLOGY MARKETING.

There is no doubt the internet has changed the way buyers find property. Make sure you work with a land broker that understands the power of digital marketing. Here's a list of key digital marketing assets that will help you maximize your property's exposure:

Syndication to the best property search sites

Targeted social media & online marketing campaigns

Digital property brochures

Unique property websites

PEOPLE MARKETING.

Old school marketing will never go out of fashion. A proactive approach to networking, relationship building, and calling on potential buyers is critical to a successful sale

PROPERTY MARKETING.

Making sure your property marketing assets are top notch will go a long way toward maximizing your land's value. Here are some of the important property marketing assets you should have:

Professional photography. Nothing says amateur marketing quite like DIY phone pictures. A professional photographer is worth their fee. They understand how to capture the ideal essence of your property.

Professional videography. Drones have been a wonderful innovation for property marketing. A well captured aerial and flyover act as a virtual showing for buyers.

Professional Signage. Sometimes land parcels can be tricky to navigate An investment in large, easy to see and read signage will capture those serious buyers on the hunt as well as drive bys.

MIKE WASEEN, JOHN GREENE LAND

DEATHBYENDOWMENT

No doubt one of your biggest goals is to maximize the value of your property. In order to do that, one of the most important steps in the whole process is selecting the right pricing strategy. An effective pricing strategy will create strong demand and ideally multiple offers, driving up the price. An ineffective pricing strategy will keep the property on the market for an extended period of time, negatively affecting your net proceeds.

Have you ever heard of The Endowment Effect?

In behavioral finance, the endowment effect describes a circumstance in which an individual places a higher value on an object that they already own than the value they would place on that same object if they did not own it. The Endowment Effect is often heightened with items that have an emotional or symbolic significance to the individual.

Because of this, many sellers believe their property to be worth far more than what the market would suggest. So how do we overcome this?

See the property through the “buyer's eyes”. Because of the volume of information that is available today, buyers are very savvy in how they perceive value. Buyers know when a property is overpriced, or at least, doesn’t represent a good value in the marketplace.

The evidence for this shows up in a lack of inquiries, a lack of showings, and a lack of offers. Market data suggests, that to complete a sale in 3 6 months, a listing needs to receive 1 2 inquiries per week, 1 showing per week, and an offer per month If it’s more than a few weeks between showings or offers, the property is likely overpriced, and price improvements need to be made.

NOTSETTINGTHESTAGE

The practice of home staging has become table stakes in marketing residential property, and the data backs up the practice. Staged homes sell for more money, faster, and with a higher degree of certainty. It makes sense. Buyers need to envision themselves living in a home, so setting the stage for them by eliminating clutter and placing the right furniture and décor is a brilliant practice.

Your land parcel should not be treated any differently. A little property preparation can go a long way toward helping you sell faster and for more money. Here are some low-cost, high-value improvements that you can make to your land that will help maximize the value and certainty of your sale:

Brush & Tree Cleanup Trail Cutting

Mowing Tile Repair Fence & Gate Repair

Mike Waseen

Broker, john greene Commercial MikeWaseen@johngreeneCommercial.com | Cell: 630.360.1196 www.mikewaseen.com

ABOUT ME

I am based out of Kendall County, and specialize in commercial and land sales throughout Northern Illinois. I know you are the kind of property owner who wants to make the best investment decisions possible. In order to feel that way, you need to have access to great insight, resources, and advice.

The problem is that it can be difficult to determine the best course of action when it's time to sell your land assets

I get it. As a successful real estate broker and entrepreneur myself, I've helped many clients in your situation and it is my mission to ensure that every small business owner and real estate investor gets the guidance they deserve when it is time to sell.

Your interests will always be first and we will command the highest market price per acre possible for your land. That’s how I operate and that’s why my clients continue to rely on me with their most valued commercial assets.

I created a proven and easy 3 step process to get you the best outcome when selling your real estate assets.

No matter where you are at in the process, my goal is to provide you with the proper guidance you deserve. So click the button below to schedule a consultation and let's get a plan in place to ensure you get results.