Time to sell - Marketing

When ready to sell most property owners call a real estate agent when they are ready to sell their property and that is the extent of their marketing campaign. Real estate agents list the property on their web site, and with the MLS. They list commercial properties on some of the commercial listing services, they send out a weekly information flier to other brokers (most often by e-mail) and they put up a for sale sign. After that they sit back and wait on the phone to ring.

When an interested party makes an inquiry the broker tries to interest the potential buyer in your property or any listing they have that they think they can sell. They show your property to any buyer that wants to see it. If you are an asset to the showing they will want you present for the showing, if you are not considered an asset they will ask you to be absent during the showing.

The real estate agent works for you as you will be paying the commission. Well not quite, the agent works for himself and he or she needs the buyer to buy a property from them, any property. Keeping that in mind, I highly suggest you have your own marketing campaign going along side the agents. I always do, and two thirds of the time I find the buyer not my agent, and yes I still had to pay the commission. I am not trying to save the sales commission, rather I am trying to get the fastest possible sale at the best price.

I have one huge advantage over my real estate agent. I want to sell my property, and only my property. Also I know the area and the property better then the agent and in most cases I know far more about investment property, and certainly my particular property then the average real estate agent.

One more thing about real estate brokers, I almost always use one. Why is that? Because in the scope of things they know the market and the players. They can find you deals you will not hear about any other way. Choose your brokers carefully and be sure they are experts in the type of property you want to buy or sell. Cultivate a win/win relationship with your real estate broker and you will make money with them over the long haul.

What should be in your marketing plan.

• The real estate agent.

• The web site.

• The property information packet

• A for sale sign.

• List your property with a listing source

• Consider advertising.

The Agent

Pick a real estate agent who specializes in your type of property. I can not say that strongly enough. If you expect results deal with an expert in your property type and one who has a marketing plan. Agents who specialize in a property type advertise in specialty publications to attract buyers. Do not worry about the sales commission, if the agent brings you cut rate offers renegotiate the commission. If the agent gets your sales price number, pay them and do so with a smile, they earned it.

A web site.

If your property had a web site that is a good place to add a white paper on the sale of the property. Just pass word protect the page so you can restrict the viewers. If you do not have a web site get one just for the sale. When you get a phone inquiry you can direct them to the web page. You could have them register first so that you have the contact information. Your agent can direct other real estate agents and buyers to the web site where complete and accurate information about your property can be viewed, information that you control. Other interested parties will also want to view the information such as appraisers, lenders and partners and advisors of the potential buyers.

The web site sales pages can be simple or elaborate depending on the properties sales price. The important thing is that you get to control the information and presentation. You are trying to get top dollar and any thing that sets the property apart can be beneficial. Even something as simple as a future rent increase schedule can tip the scales in your favor.

The web site should include. Photos, P&L statements for the past two years and a pro-forma for the next year, a rent schedule, a list of property highlights and where possible photos of them, a list of recent improvements, a rent increase schedule, explanations where appropriate, favorable location attributes. There are a host of other things that are specific to a property such as, planned city improvement, traffic counts, surveys, studies, management info, financing availability, and so on.

Prepare an Property Information Packet.

A sales information packet is a sales tool designed to convince a buyer that you property is the best investment since sliced bread. You could think of it as a very long sales brochure with financial information attached.

Today I recommend your property Info pack paper be done in the form of a web site where you control the information that is put out on the property and not leave it to the real estate agents or the potential buyers discretion. People are busy and a bit lazy so they tend to take short cuts and form opinions with only half the facts. That's OK! For the competing properties, but you want top dollar and half-way is not the way to win.

So how do you do one? Start with all the information you have on your property, assume you are writing a business plan for your income property. Then combine that information on a web site, along with pictures and graphics and you will do a fine job of making a sales brochure. Doing a business plan for your income property makes you think through all the aspects that you need for the Information package paper. Organize the resulting info in a logical sequence and you are done. An experienced investor will appreciate your efforts on it's merits and a novice investor will take your word as facts, because you took away most of the scary part of buying and that makes their decision easier, because your web site reduced their uncertainty. You will also stand out from the other properties listed for sale as few sellers will go to the trouble. See ;Time to sell - the property information packet.

The FOR SALE sign.

Put up your own for sale sign. I know two for sale signs is redundant. Well not really, some buyers will call the owners sign (principals) before they will call the agency's sign (I do) and you will be surprised how many times the agency phone is not answered or messages to return your call are ignored. Besides it is the cheapest thing you can do. Don't forget to explain what is going on to your renters, they do care about the property they are renting from you.

I have sold several properties over the years and I have come up with the buyer much more often then the real estate agent has. Often by the time the agent talked to the buyer it was to write up the deal. I get top dollar when I sell because my method works, partly because of my marketing effort and partly because I find out what the buyer wants, then I give it to them.

List your property with a listing source

There are many on line real estate listing web sites. Some specialize in commercial properties and you want to be on their list of for sale properties. Also list your property on free web sites like “Craigs” list.

You never know where your buyer or renter will come from.

Consider advertising.

A friend of mine sold her ten acre plant nursery to an Asian sovereign government company. For three years real estate agents had told her the market for plant nurseries was dead and the property was only worth $1,000,000. Each in tern failed to sell the property and none marketed it correctly. The agents wanted to sell real estate and not learn the nursery business they did not understand.

I told her the value was in the property being a Nursery as replacement cost was near $2,000,000 and she should sell it as a nursery. She advertised in the national nursery trade journals for eight months and sold the property with improvements, as is, for 1.5 million dollars.

If you want top dollar you have to go find it. There are buyers for your property but they do not know you exist. Find a cost effective way of reaching potential buyers and then do it. The real estate agent is only about one third of your marketing plan, assuming you want top dollar that is.