Information you need for buyers and how to expose your property


What information do I need for a buyer?

You should assemble all your information first, before you take the first step in marketing your property. You should be ready if the first person you speak with asks for an information package. The contents of the package will vary depending on the type of property. At a minimum, you want the street address, legal description, some color photos, asking price, willingness to pay a commission (if you decide to do that), approximate size of the lot, general description of any improvements you have made to the property, and approximate square footage of the improvements.

An information package for a home should generally include all relevant school districts, average utility costs for twelve months (if known), and distance to shopping, fast-food restaurants, the fire station, and other relevant points. Information about income-producing property would include zoning for the property, availability of high-speed Internet, names of any commercial tenants - but not names of individuals renting dwellings - and a twelve-month operating statement or a projected twelve-month pro forma if the property is unoccupied.

Demographic information is often very important when marketing a commercial property. This is the profile of the area within a one-, three-, and five-mile radius. It includes average income, household sizes, ages of people in the area, and an incredible variety of other information. You can order demographic reports from Claritas, which is the largest paid provider of that information.

Traffic counts are also useful. Call your local Department of Transportation and ask how you can obtain those numbers. They show how many vehicles pass certain points within a twenty-four hour period. This is extremely important to many potential buyers. If you are selling raw land, mention what utilities are on the property, which ones come to the property, and which ones are nearby. Zoning information is important, as well as whether the property is within any city limits or police jurisdictions. Include traffic counts, if known. Any surveys or topographical maps you have available for inspection should be mentioned.

How can I expose my property to the marketplace?

First, find out the names and addresses of the property owners neighboring your own. Adjoining property owners are the easiest potential buyers to find, and the fastest closes at the best prices. Do not rely on these people to contact you after you put up a "For Sale" sign. Many will wait several months before calling you, afraid to look too eager. If you call them, however, they will know you are aggressive and motivated, and they will believe that failure to make an offer quickly could result in someone else buying the property.

Expanding outward beyond your immediate neighbors, other area homeowners usually know friends and relatives who want to live in the neighborhood. Landlords in the same general area are usually eager to acquire additional properties. Tenants often want to stay in the same part of town, and may be ready to move up to home ownership. These people should all be your next contacts, generally by way of a flyer put in a noticeable place, such as in the screen door.

If these efforts do not result in significant interest in two weeks or so, move on to the next step. Establish a marketing budget. Once you determine how much money you can spend, decide the best places to spend it. This may be a little bit of a chicken-and-egg situation, because you first need to have a general idea about how much different strategies and advertising media cost. The smaller your budget, the more creative you will need to be and the more of your Targeted outreach can be very successful. This is like what you did when you went to the neighbors. Expand that concept. Who is likely to want to buy your property? If it is a good retail location, a successful business in some other part of town or a nearby community might want to expand to your location.

Almost all cities and towns have real estate brokers who will charge you a flat fee to place your property on the local MLS service. Compare prices and terms - does your fee buy you six months on MLS, or an indefinite time period until the property sells? Prominently disclose that you will pay a 3% - or whatever you want - commission to any agent who brings a buyer to the closing table. You need to give some incentive, otherwise there is no practical reason why an agent would do you a favor and tell his or her buyers about your listing. This is not a public service agents provide - it is a career. The downside is that any potential buyers working without an agent will know you are willing to reduce your price by that amount if you do not have to pay a commission.

Try to obtain placement on all websites your budget will afford you. According to the National Association of REALTORS, 87% of home buyers find their properties on the Internet. There are many different websites devoted to commercial listings such as apartments, offices, and retail space. LoopNet is one of the largest.

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Note: This article was sent to us by: Martin C. Doyle at 07042010

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