Today we will discuss marketing difficult investment property. Thanks for tuning in to the Real Estate Today podcast.
Bob Nelson: I’m Bob Nelson, real estate investment broker with Pacwest Real Estate Investments.
Marcia Edwards: And I’m Marcia Edwards, residential broker with Windermere Real Estate. Let’s talk a little bit about this robust seller’s market. Let’s say you’re a seller, on the market, and you don’t have multiple offers, you don’t have quick opportunities, and you’re wondering, “What’s wrong with me?” Let’s talk specific to the investment world.
Bob Nelson: Well specifically, it’s either something wrong with the property or something wrong with the pricing and terms that are unacceptable to a buyer. Let’s start with the issue of the property. If it’s a kind of a one in a million thing, it’s there, it suited the last user, but seemingly the last user was a very unique individual, and you can’t find another person like it that gets excited about the property. That becomes then, if it’s a property issue, it becomes a function of price.
Marcia Edwards: And I think that when you look at why you’re selling the property, for some reason it doesn’t fit you, it may be the same objection other buyers have.
Bob Nelson: Yes.
Marcia Edwards: Be honest, if it seems like an overwhelming project to you, that you’ve got it, it’s dilapidated and you say, “I’m just going to let this go.” That’s telling you something also.
Bob Nelson: Yes, exactly. And all of those things could happen to adversely impact someone’s desire of the property. Also, it could very well be the zoning, or allowed uses of that particular property. You look at it, you say, “Gee, that should be a such and such.” You check the zoning, it doesn’t allow that to happen. And a variance to the zoning is not really obtainable based on what talking to the land use people. Now you’ve got an issue, that use that’s most probable, is probably not going to be there. Now comes other uses that may be of less value to the property.
Marcia Edwards: Now don’t you think it’s sometimes the case that the owner, the person holding the bag at that point, needs to take a good look at what they need to know, not what they want to hear. I think sometimes in real estate sales, we get into saying, “Oh sure, we might find someone that is hard of hearing that will love your house on the freeway,” that kind of thing.
Bob Nelson: Yes, yes.
Marcia Edwards: But we really don’t need, they need to hear that it will be rejected by a lot of people for this objection, this status, this current condition, or whatever it may be, the zoning change or use.
Bob Nelson: Well from a broker’s standpoint, you really need to be candid. Don’t sugarcoat this thing. If you say, “Oh my gosh, this is going to be tough,” let that be known to the owner.
Marcia Edwards: That’s right, that’s the way you start towards success. I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: And I’m Bob Nelson, real estate investment broker with Pacwest Real Estate Investments.
Join Bob Nelson and Marcia Edwards Eugene, Oregon, real estate experts daily at 5:30 on KPNW for the “Real Estate Today ” radio show.
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