Author Topic: FSBO building lots and land  (Read 1580 times)

Elkpeople

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FSBO building lots and land
« on: August 17, 2016, 03:25:59 PM »
Hi everyone... new member, so glad to be here !!  I'm older - 61.5 - and hoping to retire next year.  Wish I had this site when I was younger, but gotta make the best of where I am today.  My question is regarding selling building lots (we have 3) and land.  Most of our net worth is in real estate, and we need to get some of it sold to pull the trigger on retirement.  We've listed our 4 building lots with 3 different local realtors over the years - only one has sold to date.  We also have 45 acres adjacent which is listed - along with the lots - until October.  We're wondering about FSBO selling the lots and land... maybe FSBO.com.... maybe there are other websites to look at. ??  Our market is luke warm, but a fairly nice community.  We even thought about trying some sort of online reverse auction, i.e. starting with a price for each lot and reducing by $100 / week (or some amount) until sold. I guess I'm just fishing for ideas / suggestions at the moment, as I am feeling underwhelmed by the results we are getting with local realtors. Thanks !!!

Landlady

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Re: FSBO building lots and land
« Reply #1 on: August 17, 2016, 03:44:48 PM »
Faira.com is a good way to go if you are in Washington state, but since you probably aren't you can try fsbo.com or mls4owners.net in order to get listed on your local MLS.
Usually getting your property on the local MLS is what will help it sell, but you can market it yourself with Zillow for free. I don't think many home buyers check Craigslist now, so no need to try there unless you have a big local Craigslist market.
If you feel you need an agent you can negotiate their commission down before signing a contract.
Hope that helps. Good luck!

GreenEggs

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Re: FSBO building lots and land
« Reply #2 on: August 17, 2016, 04:24:21 PM »
https://www.biggerpockets.com/forums


Is a real estate investment forum.  Maybe you can get some tips & ideas there.

Good luck with it. 

Another Reader

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Re: FSBO building lots and land
« Reply #3 on: August 17, 2016, 04:35:08 PM »
Are there any recent sales of lots or land in the vicinity?  How many lots sold in the last year and what was the time on the market for these sales?  Did the agents do a comparable search and suggest the price or did you set the price based on some other criteria?  Have you asked the agents why the properties have not sold?

There is a saying in real estate:  Price fixes everything.  If there is demand for buildable lots and land in the area, your price is likely too high.  If there is no demand, you will likely have to drop the price significantly to attract a buyer that wants to hold the lots long term until the market improves.

waltworks

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Re: FSBO building lots and land
« Reply #4 on: August 17, 2016, 09:08:09 PM »
Yeah, AR nails it as usual. If it's not selling, it's priced way too high. Lots of people are emotionally invested in real estate and have a really hard time with this, but it's not "worth" anything more than the market will pay for it, no matter how much you love it or how long you've lived there/owned it.

In your situation, it might be worth sitting down and deciding:
-How much money do you need to get out of these properties to accomplish your RE goals?
-If they're not worth that much, would you be willing to sell at the market price and invest elsewhere/come up with another plan? Or do you want to keep holding onto them?

It's not all that complex, really. Ask for less money.

-W

Elkpeople

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Re: FSBO building lots and land
« Reply #5 on: August 18, 2016, 04:36:25 AM »
Thanks guys.... good thoughts and suggestions.  I am ready to lower the price if that would get them sold (although we are asking less than any other lots in our City with all utilities, etc.) - because I want to move on with this.  Convincing DH will be the challenge - Walt describes that situation pretty well haha. 

waltworks

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Re: FSBO building lots and land
« Reply #6 on: August 18, 2016, 11:15:17 AM »
What others are asking is irrelevant. No sale = price too high. What have comparable pieces of land *actually sold for* in the last few years?

-W

Thanks guys.... good thoughts and suggestions.  I am ready to lower the price if that would get them sold (although we are asking less than any other lots in our City with all utilities, etc.) - because I want to move on with this.  Convincing DH will be the challenge - Walt describes that situation pretty well haha.

Elkpeople

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Re: FSBO building lots and land
« Reply #7 on: August 18, 2016, 12:00:04 PM »
Yes I understand.  I meant to say less than other lots are selling for - maybe didn't word that clearly.

waltworks

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Re: FSBO building lots and land
« Reply #8 on: August 18, 2016, 01:25:15 PM »
It sounds like a neutral/uninterested party should do a market analysis for this land for you. If it's truly superior to existing sales AND priced lower, it should be easy to sell. It is likely that you are seeing this asset through the rose colored glasses of ownership.

Good luck!

-W

GreenEggs

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Re: FSBO building lots and land
« Reply #9 on: August 18, 2016, 02:17:45 PM »
That's what an appraiser does.  We needed an appraisal and found a good appraiser by asking our bank manager for a recommendation.  Before asking the bank we were getting quoted higher prices, and one guy even required to be prepaid!