Although the real estate market is slow and some could justifiably say unstable, the phone is still ringing. The calls are not very productive but just the sound of the phone ringing gives everyone hope.
When the market experiences oversupply some positive things occur. Some individuals choose to give up their license. Fewer agents mean more opportunities for the ones left. But, when it’s difficult to obtain financing and when the public is scared by the news media even more opportunities is not enough. We also have to be more creative in drawing attention to ourselves and our listings.
This past week I received an interesting call. A well-established industry is looking for money to expand their building. They decided selling an adjacent 6-7 acres would be what they needed for their expansion fund. So they called asking how to determine the value of the property and wanted us to present a marketing plan. Great? Hmm.
The property is landlocked. This means there is no road frontage. None. Not a driveway, an alley, absolutely no access on its own. The property also has the railroad tracks on one side.
Now the real estate agent has a problem. First, when approached by a potential listing, the agent has to determine who would be most interested in the property in its present state (next door to an industry, zoned industrial, no access). I’m coming up blank. Okay, next determine what changes could be made to make the listing more attractive to a wider audience. First, zoning can not be changed. In another situation zoning could possibly be changed, which might take months, but in the meantime the property could still have exposure with the potential zone change. But not in this situation. Next door to an industry, within an industrial park, the zoning is not going to change.
So we have narrowed down the list. Garden home builders will not be interested in being next to a railroad track (although I have seen it done, more than once and within the past two years), no commercial stores which attract the public, no public services. And considering its remoteness, not even storage buildings.
Okay, so it looks like only another industry. What about the neighbors? To the south of the landlocked property was a nursery which recently closed and sold to an undetermined business. That’s a possibility. So our marketing plan includes one plan of action: direct mailings to industries and neighbors indicating the value of the area and the opportunity to own acreage conveniently located.
In preparation for my appointment I have aerial photos, courthouse information and direct mail marketing suggestions. Not much to go on. And still I have to explain the landlocked issue and determine a price.
Of one thing I am certain. Even before searching the local MLS this is not the type of transaction that will be considered hot. I intend to make it plain that although there is insufficient data to determine a DOM (days on market) range, we anticipate steadily working the advertising for at least two years before there’s any possibility of success. And that’s only if a market turn occurs as anticipated this summer. It could take longer. And since they already have the money allocated, I’m sure this is not what they want to hear.
And if I don’t get the listing, I won’t mind. I have the attitude of working every possibility but realize there are some listings I really don’t want.
Real Estate Appraiser 