I have a small subdivision with 25 lots priced in or around 50,000, just outside Baton Rouge. Since the recession hit in fall of 2007, we lowered our prices from $55,000 average ($65,000 on some), to $45,000. Even so, we have only sold 2 lots. What is the best and fastest way to sell more lots and still retain a respectable margin of profit. (We paid a premium price to develop the subdivision, and so, need to get at least $45,000 per lot for the remaining lots, in order to more than break even.) We are paying prime plus 1% interest. We can hold on a little longer, but would prefer to sell out, if possible. Any suggestions?
Thanks for the question.
First, the reason this is happeing is because of the current credit crises. People just can't get loans now. It's not because people don't like your houses - they just are struggling to get approved.
Now, that being said, the prime rate will eventually start to creep up, and you need to be out by then. Follow these three instructions and you should be able to get the ball rolling.
First, contact the banks in your area and speak to business development managers. Explain your situation. They are business minded people who look for ways for the bank to profit. They should have plans that could allow you to arrange favorable terms when they approved buyers to buy your properties. Also, remember, the banks hold the cards, so work with them on any number of options and see if you can come up with a strategic plan.
Next, hire the best realtor in Baton Rouge and I mean the very best. This one is not rocket science and it is a must do. Call the Baton Rouge association of Realtors and find out who's the best as far as sales over the last three years. Hire that person. This realtor will be the most creative. He/she will expand your search for approved buyers.
Here's the link:
Lastly, attack the internet. Expand your marketing to the internet, via Craigs list, facebook, and other websites. You will be surprised how this works. Also, don't limit your marketing to just the Baton Rouge area.
15 years expertise in all ares of personal finance, including credit cards, mortgages, real estate.
Thank you for your answer. Some of it I knew, but just the suggestion about banks was worth the time and price.
I have hired the best realtor I know of, but I will definitely try the Realtors association.
Thank you for the kind words.
Good luck with your sales.