Real Estate Agent · Orlando, FL · Member since 2014 · 46 posts · 11 votes
Hi BP,
I’ve been interested in double closing on a lake front property within Central FL and wanted to propose an offer range from $1.6 - $1.7m based on my analysis. It is 2.5 acres with over 15 undeveloped residential vacant lots that are platted; no comps. Previous due diligence, planning, and City permits completed. The seller is asking for $3.5m and stated he has refused offers below $3m, but is willing to review all offers.
As mentioned, I would double close with a builder/developer as the end buyer. So far, I have connected with mid to large size developers, but don’t want to contract with the seller if $3+m is seeking too much from my end buyer for 2.5 acres.
Would greatly appreciate any feedback from any vacant land wholesalers or builders/developers . Thank you!
I agree with John. I would make sure you have secured a buyer before going under contract. Realtor or not. If you have a mid-size developer connection, have you brought the deal to them?They would likely be very open about how much they would pay for land, which would give you a better idea on the offer to make the seller.
How long has the seller had the property for sale? Everyone says they won't go below *$* until they see a legitimate offer, or are tired of waiting it out. Good Luck!
I couldn't speak to the value, but for something like development land that has a limited list of potential buyers, I would be very careful how much earnest money I put down as you don't want to get stuck in a contract without having a buyer ready. Since you are a licensed agent, could you instead bring buyers/developers directly to the seller and therefore earn the commission on the sale as you are the procuring cause? It might be a lower payday, but it seems like a safer way to do it.
I agree with John. I would make sure you have secured a buyer before going under contract. Realtor or not. If you have a mid-size developer connection, have you brought the deal to them?They would likely be very open about how much they would pay for land, which would give you a better idea on the offer to make the seller.
How long has the seller had the property for sale? Everyone says they won't go below *$* until they see a legitimate offer, or are tired of waiting it out. Good Luck!
@John K. I initially thought about doing such when there's a complicated leads. I'll have to learn more about my end buyers and if they'd be ok with that. Thank you for the reply.
I agree with John. I would make sure you have secured a buyer before going under contract. Realtor or not. If you have a mid-size developer connection, have you brought the deal to them?They would likely be very open about how much they would pay for land, which would give you a better idea on the offer to make the seller.
How long has the seller had the property for sale? Everyone says they won't go below *$* until they see a legitimate offer, or are tired of waiting it out. Good Luck!
I haven't tried this before...I would love to send my contacts potential leads to really gauge their price points as they haven't said any numbers specifically when previously asked. Would I just forward the information (w/o the exact address) and images of the lot to get their feedback? Would I need to be concerned with them closing on the lead themselves since I haven't signed a contract yet?
Definitely a teaser! It depends on who I’m reaching out to and if the property is listed.
If it's on the MLS, I wouldn't give the full address unless you have a trusted relationship with potential buyer. I usually give all other information (ie. Zoning, future use, price, and pitch, neighborhood/zip, etc) If you are direct-to-seller and there isn’t an easy way to have a possible buyer scalp the lead, I would include address.
You could also see if the seller will sign a listing agreement. Even if it's just for a short time. IF they don't want it on the MLS (option in listing agreement), you can still exclusively market and work with the seller, and not worry about the lead bypassing you.
Sorry for the delay, I hope this gives you some additional insight.
If you want to connect off BiggerPockets, message me!
@Kelly Boulton Thank you for the follow-up. I ended up designing a "teaser" similar to what you described (i.e.: summary points, price, pitch, no address, etc...) for the $1m+ property. The plan is to begin forwarding it to my contacts by the end of this week and hopefully get buyer feedback before following up the listing agent/broker - if there's buyer interest.