Top 4 Mistakes Sellers Make with Development Land
What is the first step you would take to sell your land? The process of selling residential development land can be complicated and is very different than selling a house. Below we have outlined the top 4 mistakes we see property owners make when selling their development land and what to do instead.
Mistake #1: Listing their property on MLS right away for “maximum exposure”
Why is this a mistake?
Development land buyers (developers/investors) are accustomed to having someone personally present a property listing to them. In addition, there is a perception that development land listings on MLS are “time wasters”.
Mistake #2: Not giving the buyer any due diligence time
Why is this a mistake?
Experienced buyers of development land will not be able to justify offering the maximum price for a property if they cannot investigate the potential risks.
Note: if a seller has a tight timeline to sell a property, and the sale price is a much lower priority, this could be a recommended approach, but money may be left on the table.
Mistake #3: Assuming that “list high, sell high” is true
Why is this a mistake?
If the asking price is far above market value the buyer perceives the listing to be a waste of time and passes over it entirely.
Reminder: The list price does not tell potential buyers how much a property is worth, it is the buyer’s independent evaluation, typically based on residual land value.
Mistake #4: Thinking their property is worth at least as much as their neighbours.
Why is this a mistake?
Remember, it’s possible to list a property for any price, regardless of how much that price may exceed market value or not reflect the property’s unique development potential and thus value.
how we help sellers avoid these mistakes
Wondering what you should do to avoid these mistakes? If you are considering selling your development property and would like to learn how to avoid these mistakes and have a positive sales experience, we encourage you to reach out to us at any time. For over a decade, we have been helping land owners avoid these mistakes and achieve their real estate goals. Here’s how:
Avoid Mistake #1: Leverage our Experience and Reputation
Benefit from our reputation in the marketplace. We are a trusted source for excellent land opportunities by buyers and buyers’ agents. Our reputation, combined with our marketing program and negotiation experience are proven to solicit as many qualified offers as possible, creating an ideal environment to optimize pricing and deal terms.
Avoid Mistake #2: Benefit From Our Expert Advice
We are in the business of sharing information and encourage you to ask us questions. We can help you understand:
- How a developer values land
- What is “due diligence”?
- What you can provide a developer to help assure a smooth transaction
Avoid Mistakes #3 & #4: Rely On Our Comprehensive Service
Our hands-on approach assures you receive a comprehensive service offering, customized to your property and goals. We can help you by:
- Building a property valuation & pricing strategy
- Running a proactive and comprehensive marketing and sales program for your property
- Securing offers from qualified buyers
- Executing deal negotiations and contract administration
Plus: Top-Notch Customer Service
Our administrator-heavy business model means you will receive top-notch customer service and communication. Frontline Real Estate Services’ brand promise means you will always receive: An A-player team, educational marketing, and geographic expertise.
