DH and I are residential lot developers. We have parcels in several locations. We are currently dealing with 7 different realtors ( selling for us). Six of these are for land, and the other is for a condo.
The market is very slow here, so we do not get constant action. However, we NEVER hear from most of these realtors except about a month before their contract runs out. Keep in mind that these parcels can sell over a period of many years. We sign a contract, get the paperwork......and then nothing!
What should we expect? Is this the norm? Just curious about what others experience!
Why seven and not at most 2?
Not knowing your market, but using my own experience, negotiating listing 6 lots with an agent gives you somewhat more leverage than negotiating one lot. In my area commissions on lots for the buyer's agent is usually 2% - 3% more than a residential listing. If you can knock down 1/2% or more on the listing side that will save you some money. You will also benefit from the same listing agent advertising and being in contact with you.
In some areas there are agents who specialize in selling "dirt" as some call it. Check and see who is selling (not just listing) a lot of dirt. As for the condo, if you want to throw that in for good measure then you are only working with one.
On land you are not going to have that much traffic so there might not be that much to report. But even then you should have an agreement for routine reports on activity from your agent. Up front I discuss with my sellers when and how to report. About half way through the listing you should review what has sold in the area and how your pricing compares.
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Thank you, Charming, for your input. It is good to hear what others say about this.
There are 7 different agents because these parcels are not located near each other....different parts of the state. Yes, we realize that selling land is different from housing. We have been doing this for many years, and things are slow right now.
We sort of ended up with the condo by purchasing it along with a parcel of land. We have had it rented ever since then, but really want to sell it. We are not going to get what we paid for it. We recently listed it with a different agency, signed the paperwork, got things rolling....and then never heard from the agent. I see it is listed online, she took new pics, etc.
In the past when dealing with a local realtor, she updated us monthly. She sent copies of all ads that were placed, informed us of showings, etc. I guess we were spoiled by her.
Thanks for the additional info.
No, you were not spoiled by the other agent, that is what all should be doing for you. I would contact each and explain your expectations. On the land a monthly update should be sufficient and the condo biweekly at a minimum.
It is difficult if the condo is rented. Here you have to give 24 hours notice to show. If the lease agreement is up for renewal either, notify the tenant you're not renewing, if you can afford to do that, or renegotiate the rent to a lower amount to allow showings with a shorter notice and to a month to month if not already. As you know, it must be specified in the lease because they can renege if not in writing.
Also, as you probably know, an empty condo with fresh paint and flooring is a much easier sell than one occupied by renters, unless you are in a development that has attracted investors. Then they might want to keep the tenant. If you need to keep the tenant and a long term lease - then be sure it is advertised as a great investment with tenant in place.
Good luck.This message has been edited. Last edited by: Charming,
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Just came across your post. I'm curious to know did any of your property sell out?
Yes, we have sold several lots...all located about 1/4 mile from us.
There have been a couple of sales elsewhere. The tenant in the condo texted me (several months ago now)and congratulated me on selling the condo. WHAT??? We had had no offers, calls, paper works, etc from the agent...yet she told the tenant that it was sold. I was glad that the tenant did not find another place.
Things have definitely improved as far as sales go, but several of those agents never contact us.
Thanks for all your points that you had added here about what will be the expectation one should have for the real estate.
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