Today we’re talking about solutions for marketing a difficult investment property. Thanks for tuning into the Real Estate Today podcast.
I’m Bob Nelson, real estate investment broker with Pacwest Real Estate Investments.
I’m Marcia Edwards, residential broker with Windermere. We’ve been talking about, when you’re in a robust seller’s market with your investment property and it is not moving as you had hoped. We talked last program about, what is it that’s preventing the sale? Let’s talk a little more about that and head into the solutions on what you need to discover to be successful.
Bob Nelson: Well, and again, it could very well be that the use, as you look at the property, the use that really should be made of that is not allowed legally, because of the zoning, deed restrictions, or something of that nature. If that’s the case, now you’ve got a bumpy situation, because the secondary use and trying to find somebody that’s willing to pay a high price for a secondary use is probably not going to fit.
Marcia Edwards: What I also see in that type of circumstance, Bob, is if it could be converted to something else, and the seller is pricing it as if it already is that something else.
Bob Nelson: Oh gosh, that’s always-
Marcia Edwards: The potential.
Bob Nelson: Yeah, pricing ahead with, “Oh, this thing’s going to be worth this amount in a couple years, so I want that price now,” good luck. You’ll wait a couple years and then you’re going to find somebody that’ll pay the price that’s justified a couple of years from now, a couple of years from now. If you say, “Hey, I want to go out now,” you’re going to have to operate at the market. Now clearly, and this is something that my father, who was a commercial broker before me, taught me loud and clear, that buyers make value. Sellers make asking prices. If you cannot find a buyer willing to pay a particular price for a property, they are voting loud and clear. Assuming that all of the buyers that should have familiarity with this property do, restated, it’s an open marketing effort, and a good job has been done, if you’re getting no offers, the market is really voting. They’re saying, “No.”
Marcia Edwards: I think that you’ve got to look … Backtracking on what you covered already in ground here, Bob, is what the property is to which buyers. Is there appeal to the buyers? Is it legal use, the optimal use at which you priced it? Also, what you’re saying is, does everyone that should know about the property, know of it?
Bob Nelson: Yes. Exactly. If there has been an open marketing effort, it’s been on the various networks that commercial brokers would be familiar with, if you’ve given the property reasonable exposure, and nothing’s happening, that simply means several things, price is too high and people are rejecting it because of the price, or simply, I don’t have use for it. If I don’t have a use, I’m not going to buy it.
Marcia Edwards: I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: 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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