Have you sold old property?

sunflower-n-ks · #1 05/10/08, 03:58 AM

I have an old house in town that is 2 blocks from a college campus. Lots of college kids go by it every day. It was a old fixer upper that I was slowly getting ready to put on the market. It burned yesterday and now needs to be taken on down, but I am hearing that the lot has value either for someone to rebuild appartments on or to keep appartments OFF of (the neighbors do not want the appartments), I am also getting different opinions on how to go about finding a buyer. I am not sure if I can trust what anyone says because it seems everyone has their own agenda. The one consistant is that lots are wanted in that area. In fact some of the prices being mentioned are about what I had thought I could get out of the house (most that were interested in it would have torn it down anyway).

One realtor says he has a potential buyer already, another realtor says wait, don't sell too fast, I am tempted to stick a sign in the yard for sale and see what happens, but don't know if that might mess up a sale with a realtor. Neither I nor my kids want to wait too long because of the liability issue. That house is going to come down on its own or with help at this time. My DD emailed that I should bring a lot of rope with me when I go in tomorrow. If she is thinking what I think she is thinking, I will nix that idea real quick (liability).

tyusclan · #2 05/10/08, 05:28 AM

Even if you put a "For Sale By Owner" sign on it, you still have the option of letting a broker show it if they want, and paying them a commission if they sell it.

They'll usually come to you, if someone is interested in seeing it, and ask you about them showing it. You can either let them show under an open listing where they get a commission if they sell it, but you still have the option of selling it on your own, or you can give them an exclusive right of sale listing at that point.

sunflower-n-ks · #3 05/10/08, 07:52 AM

tyusclan - that sounds easy and fair. Who does the realter have first obligation to, the seller or buyer?

bajiay · #4 05/10/08, 08:02 AM

If they have a contract with you then the obligation is to you. By law, they should look out for your best interest.

Rick · #5 05/10/08, 08:36 AM

Do you want the most money it can bring you? Find an auction company to offer it for you.

You could build some apartments yourself with good credit, and the knowhow to coordinate all of the contractors and permits you would need.

Are there enough neighbors to buy the lot from you?

Rick

sunflower-n-ks · #6 05/10/08, 08:48 AM

Rick - Of course I want the most money reasonbly possible. I have not kept up with how auctions end around here. One realter thinks a silent auction is a good idea.

I do not have the resourses to build myself nor desire to be a landlord. I want out of this area.

There have been several neighbors that have expressed that they do not want apartments there and have considered buying it. Some of them or in combination could afford the price. Not a rich community, but some hard working families that are working on improving their homes.

stranger · #7 05/10/08, 08:49 AM

if i were you, i'd keep it, fix it and move college kids in, where my son went , the land lord was getting 5200 per kid per yr X 12= 62400. not a bad piece of change for a yr. plus what he got for the 3 summer months.

sunflower-n-ks · #8 05/10/08, 08:56 AM

Stranger - there is only room for a duplex on that lot and that will only be possible because the house (the old original farm house) had been converted into a duplex before. Otherwise, only a single family home could be put on it. In the past, they would stuff a four plex onto a lot, but codes have changed.

And it is back to, I want out of the area and don't want to be a landlord. Had my fill of dealing with students.

tyusclan · #9 05/10/08, 09:08 AM

Quote:

Originally Posted by sunflower-n-ks

tyusclan - that sounds easy and fair. Who does the realter have first obligation to, the seller or buyer?

They can work for either one. When a property is listed with a broker and the commission is paid from the selling price, then the broker is working for and representing the seller. It's their obligation to the seller to try to obtain the highest price possible. They still have a fiduciary responsiblity to the buyer, and certain things are required by law to be disclosed to the buyer.

A buyer can also hire a broker and pay them a fee to find a certain type of property for them. In that instance they are working for and representing the buyer, and are obligated to try to obtain the lowest price possible for the buyer.

Any deal can be negotiated as long as everyone's aware of who's paying what to whom.

sunflower-n-ks · #10 05/10/08, 09:18 AM

tyusclan - So if the realter says he has been working with/for an investor, he has probably been hired by that investor and will have first obligation to him? And therefore will probably be trying to get the lowest price? But if he wants me to sign a contract with him, then what position will that put him in legally? He would be after a commision from me then. And the buyer?

This realter says he is very familiar with the property in that area and has sold a lot of what has sold recently. A lot of new apartments have gone up in the last few years.

agmantoo · #11 05/10/08, 10:38 AM

Pay for an appraisal. Take the appraisal with the appraisal fee added to the neighbors and see if they are interested. If not, contact a realtor, have the lot listed at the appraised value plus appraisal fee PLUS the brokers fee. Tell the broker you will not take less for your part than the appraisal plus appraisal fee. List the home for a limited time, say 90 ninety days. When you get an offer have "time is of the essence" in the contract. If the closing goes longer than the agreed time keep the escrow. This is a business transaction......no one is your friend on this transaction.

deb · #12 05/10/08, 10:45 AM

I would find out from the city/town what the land is currently zoned as.

If the land can be used for apartments or retail, then you should probably get your own realtor with lots of commercial experience. You go about hiring a realtor the same way you hire an employee. First you ask them for an opinion of the property aka market assessment. If they perform that and you like them okay, you interview them, ask for references, look at their sales stats, call the realty board to see if they have had any complaints.

Once you choose your realtor, you both need to sign a seller's agreement that states the % commission, their duties, etc. The Seller's agreement has to have a term and a non-performance clause which lets you end the contract if they don't perform their duties.

I would avoid having an auction if possible. An auction doesn't always get you the best price nor do they always yield a "qualified buyer" that can afford to buy your property. You can go through the whole auction process and later find out the "winner" doesn't have enough money or good enough credit to buy your land. Folks go to auctions looking for bargains and you don't want your land to be a bargain.

Deb
in wi

Beef11 · #13 05/10/08, 12:29 PM

The thing about realtor's is they always work for the seller. Even the buyers realtor has the seller in mind. If there is no sale then nobody gets a commission. Hang a shingle on the place and see who bites. If you can sell it without getting a pack of cash grabby realtor's involved you will have more in the end. Figure out what its worth and ask for it.

Willowdale · #14 05/10/08, 12:44 PM

Once you list it with a broker you can't sell privately until the listing is up without breaching the contract.

Selling land without a broker is easy - you don't need to arrange to show it, they can see it themselves. Just put your sign up. Anyone looking for property in your area will see it just fine. You can always list later.

However, you *should* get a real estate lawyer to read contracts before you sign them. Also educate yourself on the legalities of selling real estate in your area.

I disagree with Beef11 -- realtors don't work for the seller, they work for themselves, regardless of what the contract says. Realtors have motives that aren't necessarily in your interest, and sometimes do things like hint that you'll take less than asking in order to get a fast sale rather than getting you top dollar.

I sell houses with realtors because otherwise they're a big pain, but am selling some land directly for my mom.

stranger · #15 05/10/08, 12:54 PM

Quote:

Originally Posted by sunflower-n-ks

Stranger - there is only room for a duplex on that lot and that will only be possible because the house (the old original farm house) had been converted into a duplex before. Otherwise, only a single family home could be put on it. In the past, they would stuff a four plex onto a lot, but codes have changed.

And it is back to, I want out of the area and don't want to be a landlord. Had my fill of dealing with students.

i know what you mean about students, my wife didn't believe what a slob the boy turned into til I took her up to the college unanounced and that was after we gave up the deposit for the house he was in the previous yr. he was on the baseball team and i guess they thought that gave them the right to destroy property. and the place smelled like our horse barn. I had to retrain him when he got home.

tyusclan · #16 05/10/08, 01:32 PM

Quote:

Originally Posted by sunflower-n-ks

tyusclan - So if the realter says he has been working with/for an investor, he has probably been hired by that investor and will have first obligation to him? And therefore will probably be trying to get the lowest price? But if he wants me to sign a contract with him, then what position will that put him in legally? He would be after a commision from me then. And the buyer?

First of all, the term Realtor can be a misnomer. Just because a person is licensed real estate agent or broker does not make them a Realtor. You have to be a member of the National Association of Realtors to be called a Realtor. Most are, but not all.

Secondly, if an agent or broker is representing the buyer, then he would be negotiating with you for a lower price for the buyer. He is supposed to disclose to you that he is indeed hired by the buyer, if that is the case. If he is hired by the buyer, and does not have a contract with you, he has no reason to expect a commission from you.

If he is simply taking a customer around showing them properties, then he may want to get a contract with you, and would technically be representing you in that instance, and should try to get you the best possible price.

It would be unusual, but not unheard of, for the broker to be hired by the buyer, and list the property for a commission. It is legal as long as everything is disclosed to all parties.

Agmantoo gave some good advice. Get an appraisal. That will give you an idea of what you should reasonably expect from the property. Knowledge is power.

sunflower-n-ks · #17 05/10/08, 05:52 PM

Wow, a lot of good advice. Thank you all....

I was in town today and more of the roof has caved in. We are in a spell of rain with tornado watches and warnings. A real concern on if it will stand untill I can make arrangments to have it brought down, not to mention waiting for a sale. What a mess.

I will make arrangments for an appraisal asap. A man called today, first gave his name and reason for calling (lot for home for dtr) THEN said he was with an agency. When asked, he said he knew what lots were worth in that area, just wanted to know what I was asking. Guess I do need to take the game playing out of it. And learn how to talk to them. Ugg, I hate this.

Again, thanks for the good advice, I will be reading through all of it again as soon as this storm passes.

fantasymaker · #18 05/11/08, 08:52 AM

It sounds like you need to educate yourself about the area a bit. Find out for yourself what the lot is worth , while your at it find out how hard it is to get a zoning variance to put apartments there.
Find out what the neighbors are willing to pay for the land and what they will pay for you to put a restriction preventing apartments on the deed.
Then since you already know this put it up for sale yourself for a couple of months.
Keep a list of all your contacts and if at the end of the time you list it with a agent be sure to tell them that you have these contacts and that you reserve them .
When you do get the deal see if a no apartment restriction would be compatible with their plans. If so get the deed restriction money out of the neighbors and close both deals at the same time.