Expert: Jessica Bryan - 6/25/2009

Question
We own a home that is sitting in the middle of property that is now commercial. It was farm land forever, but now has a professional building, two banks, a hotel, a grocery store, a strip plaza (currently being built), a restaurant and much more to come.  Most of the houses on our street sold for at least 3 times market value.  A couple were torn down for the professional building.  A couple were torn down for one of the banks.  And one for the entrance way to some of the other businesses.  There are two houses and a small apt building left.  We are in the middle.  The apt building is supposed to be torn down to build townhouses.  We believe we are sitting on a gold mine, but don't know the best approach to market the property.  We would like to sell or lease and don't want to go through a realtor.  We think we can sell for around $400,000 but would like to know if you can give any advice as to the best ways to market the property.  We are assuming that more townhouses or a restaurant will end up here.  Thanks for any advice.

Answer
Dear Deb;
I am frankly surprised that you have not already been contacted by a commercial broker regarding this property.  If I were you I would have a commercial appraiser do an appraisal first and then begin to call some commercial brokers to let them know that you are interested in selling if they happen to know of a buyer.  Make sure that you are clear on the price and the terms.  Most commercial brokers work with clients who are on the look out for good deals or potential great investments so don't be too greedy and miss the boat. However, you should be realistic and know that the commercial broker who is working for the buyer will try to intimidate you and negotiate the lowest price possible.  (That's one of the reasons you might want to consider using a commercial listing agent--you will possibly get a better price.) Why not call an agent to discuss a listing and see what they have to say.  There is no obligation in listing with them but you can begin with asking them why you should vs. doing it yourself. Marketing the property is expensive and you may find that you eat up lots of your profit.  A commercial agent can get the marketing done through networking and signage that the company already owns.  Also, they get a price break on ads that you will pay much higher prices for.  Once you evaluate the pro's and con's you will be in a better position to make a decision on what to do.

Best wishes,
Jessica Bryan