All Forum Posts by: Sal Michaels

I have some land that I am trying to sell for a relative. I interviewed several agents and made my final choice based on the professionalism and organization of one in particular. Most of the agents came up with roughly the same asking price, and this one was no different. I thought the number high, and addressed that with him, but he showed me some comps that did support the number. And I compiled a list of recent sales and found also that the data supports the number. 

I'm also in no particular hurry, at least, I wasn't when I listed with this agent 4 months ago. Lately however I have had more time to talk to the relative and it turns out that what he is trying to do is use the net proceeds from the sale to pay off or down his home mortgage, which is still in its front, and costing a lot in interest. Were the agent to get the asking price--which I don't expect to happen--my grandfather would be able to pay off his mortgage and live happily ever after. Even if it were close the ask, he'd be in good shape to at least pay it down and transfer the remaining balance to a HELOC which would free up some much needed monthly cashflow for him.

So far I can identify two mistakes I have made with this agent. First, I didn't demand a performance guarantee in the listing contract. Second, I didn't ask for a CMA until after signing. He provided one when I asked, but it wasn't up to my standards. More on that later, I'd have to dig it up and see what was wrong with it.

I signed up to list it for a year, and I didn't tell him that until signing day. He was surprised but I reminded him that I'm not in any particular hurry. 

He has marketed it quite well. Youtube videos, zillow, trulia, all over the place. The photos were much better than I could have done, and netwoked far better than I'd have the time or energy to fiddle with. 

Then there was a showing. He called me that afternoon asking me the details of the boundaries, etc, and I was a little surprised because I had provided him with all of that with a map included. So I just said, I'll go out there and meet the potential buyers. He tells me "the" agent will be there. I get there and find the agent, but the buyers are lost and on their way. Meanwhile I chat with the agent and find out that he's not one of my agency's people, but reps the BUYER. Okay, my mistake, but I was like hmmm, my agent is not here for this showing. But I am. Now, I did look into that and understand it can be detrimental for the listing agent to have to be at every showing, but this is a complicated piece of land and I feel someone needs to be there for the showing. And I told him that. And he agreed that from now on he would do so. 

Over the next three months until the present there has been some interest, I think 2 more showings, but no offers. So I asked the agent, is this normal? No offers? Not even a bs one? He tells me that it's normal, land takes forever to sell. But I'm thinking, I didn't ask if it was normal that it hadn't sold yet, I asked why there haven't been any offers. I have yet to address it further. 

That's my first question--is it normal? If yes, then fine, we'll wait, patiently. 

If no, then as I understand it the problem is usuall one of marketing or pricing. And as I said he seems to have marketed it well, at least as far as I can tell. But I am wondering now if the price is too high. Were that the case, it would be the first point against the agent as far as I'm concerned because, it is his show, I let him choose the price. This made me wonder at what point he might bring it up. Or will he wait for ME to bring it up, so that it can look like I thought he overpriced it, while he never had to admit that perhaps HE did. I dunno. Thoughts I have late at night. 

So I spoke to my dear old granddad and told him all this and he wants to wait before lowering the price. I helped him run the numbers to estimate the minimum he could get for his property and still pay off all of his mortgage, and what he would need to get in order to pay it down and transfer the balance to the HELOC. He's gonna mull it over, and meanwhile I am to go research this question (as I am doing now) and prepare to ask my agent some hard questions.

I am here because I don't know anyone in the business around here that isn't a few phone taps away from my agent. And I am always curious what wisdom I can get out of the webs.

thanks in advance,

sal 

I have some land that I am trying to sell for a relative. I interviewed several agents and made my final choice based on the professionalism and organization of one in particular. Most of the agents came up with roughly the same asking price, and this one was no different. I thought the number high, and addressed that with him, but he showed me some comps that did support the number. And I compiled a list of recent sales and found also that the data supports the number. 

I'm also in no particular hurry, at least, I wasn't when I listed with this agent 4 months ago. Lately however I have had more time to talk to the relative and it turns out that what he is trying to do is use the net proceeds from the sale to pay off or down his home mortgage, which is still in its front, and costing a lot in interest. Were the agent to get the asking price--which I don't expect to happen--my grandfather would be able to pay off his mortgage and live happily ever after. Even if it were close the ask, he'd be in good shape to at least pay it down and transfer the remaining balance to a HELOC which would free up some much needed monthly cashflow for him.

So far I can identify two mistakes I have made with this agent. First, I didn't demand a performance guarantee in the listing contract. Second, I didn't ask for a CMA until after signing. He provided one when I asked, but it wasn't up to my standards. More on that later, I'd have to dig it up and see what was wrong with it.

I signed up to list it for a year, and I didn't tell him that until signing day. He was surprised but I reminded him that I'm not in any particular hurry. 

He has marketed it quite well. Youtube videos, zillow, trulia, all over the place. The photos were much better than I could have done, and netwoked far better than I'd have the time or energy to fiddle with. 

Then there was a showing. He called me that afternoon asking me the details of the boundaries, etc, and I was a little surprised because I had provided him with all of that with a map included. So I just said, I'll go out there and meet the potential buyers. He tells me "the" agent will be there. I get there and find the agent, but the buyers are lost and on their way. Meanwhile I chat with the agent and find out that he's not one of my agency's people, but reps the BUYER. Okay, my mistake, but I was like hmmm, my agent is not here for this showing. But I am. Now, I did look into that and understand it can be detrimental for the listing agent to have to be at every showing, but this is a complicated piece of land and I feel someone needs to be there for the showing. And I told him that. And he agreed that from now on he would do so. 

Over the next three months until the present there has been some interest, I think 2 more showings, but no offers. So I asked the agent, is this normal? No offers? Not even a bs one? He tells me that it's normal, land takes forever to sell. But I'm thinking, I didn't ask if it was normal that it hadn't sold yet, I asked why there haven't been any offers. I have yet to address it further. 

That's my first question--is it normal? If yes, then fine, we'll wait, patiently. 

If no, then as I understand it the problem is usuall one of marketing or pricing. And as I said he seems to have marketed it well, at least as far as I can tell. But I am wondering now if the price is too high. Were that the case, it would be the first point against the agent as far as I'm concerned because, it is his show, I let him choose the price. This made me wonder at what point he might bring it up. Or will he wait for ME to bring it up, so that it can look like I thought he overpriced it, while he never had to admit that perhaps HE did. I dunno. Thoughts I have late at night. 

So I spoke to my dear old granddad and told him all this and he wants to wait before lowering the price. I helped him run the numbers to estimate the minimum he could get for his property and still pay off all of his mortgage, and what he would need to get in order to pay it down and transfer the balance to the HELOC. He's gonna mull it over, and meanwhile I am to go research this question (as I am doing now) and prepare to ask my agent some hard questions.

I am here because I don't know anyone in the business around here that isn't a few phone taps away from my agent. And I am always curious what wisdom I can get out of the webs.

thanks in advance,

sal