Expert: Karyn Foley - 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:  It is my opinion that you are being penny wise and dollar foolish to not go through a real estate broker.  You may end up costing yourself a lot of money simply because you have neither the knowledge of how to sell a commercial or residential offering nor the knowledge of knowing if selling or leasing would end up giving you the most you can expect in today's market or what would be the best for you in the long run.  Plus, do you know the value of your property?  Also, knowing what the other prices on the other sold properties were is only one part of the equation; what were the terms and why?  Are you in contact with people who are looking at your type of property?  Do you have a history of working with other agents who work with your potential buyer or who have buyers of their own at the ready?  You are in an enviable position of having what appears to be a very desirable property, but do not go out of your way to mess up your opportunity as most novices do.  At the very least, you would need an excellent attorney who deals in this type of real estate transaction, which could end up being more expensive than a real estate professional.  A good real estate agent has company money for a global and far reaching marketing campaign for as long as it takes to sell.  Do you have the same marketing expertise or bucks?  That is my advice.  You also never know what would end up on your property.  Take heed, please, and don't let this opportunity be ruined by going at it along.  Karyn Foley