Nothing may be more discouraging than having difficulty finding a buyer in a seller’s market. Bob Nelson, Eugene real estate investment broker, with Pacwest Real Estate Investments and Marcia Edwards, Eugene residential broker with Windermere Real Estate, are continuing to look at the process of getting started in real estate investing in part three of this six-part series.
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Let’s discuss this robust seller’s market. Suppose you’re a seller, on the market, and you don’t have multiple offers or quick opportunities. This may leave you wondering, “What’s wrong with me?” In general, this situation indicates there’s either something wrong with the property or something wrong with the pricing and terms. The end result either way is that it is unacceptable to a buyer.
Let’s start with the issue of the property. Sometimes a property is a one in-a-million thing. When you look at why you’re selling the property—and if it’s because for some reason it doesn’t fit you—then this may be the same objection potential buyers have. If you can’t find another person who gets excited about the property, then selling really becomes a function of price. Or if the property seems like an overwhelming project to you, perhaps it’s dilapidated and you’ve decided to let it go, then that tells you something as well.
Bob Nelson, Eugene Commercial Real Estate Investment Broker:
Another issue could very well be the zoning or allowed uses of that particular property. A variance to the zoning may not be obtainable based on discussions with the land use people. That means a potential buyer would have to consider other uses that may be of less value to the property.
Sometimes the owner, the person holding the bag, needs to take a good look at the realities of the property, and not just hear what they want to hear. Sometimes in real estate sales we get into saying, “Oh sure, we might find someone who is hard of hearing that will love your house on the freeway.” That kind of thing can be a real problem. Instead, sellers need to be able to hear whether the property will be rejected by a lot of potential buyers for its condition or status or zoning or whatever it may be. Brokers need to be candid in the process and refuse to sugarcoat the situation.
Being open and honest about the issues helps pave the way toward success when marketing a difficult property.
The Getting Started in Real Estate Investing Series is from the Bob Nelson and Marica Edwards “Real Estate Today ” Eugene, Oregon, radio show, which airs at 5:30 daily on KPNW.