This is a guide on how to market your Real Estate Inventory faster and efficiently based from my personal experience.
1. CHECK THE PAPERS.Inspect the initial documents and find out if the property for sale is transferable to the new owners. Scrutinize all potential hurdles and problems that would be encountered with the recent situation of the property. For every problem, there is a solution. Find out if the problem is worth your time and effort you will invest in marketing the property. If the effort is to great for the expected profit, then don't accept the property. Suggest to the seller all the possible conditions that their property will be marketed properly.
Examples of hurdles:titles have lis pendis, liens, encumbrances, properties for sale still in the mother title and not yet transfered to the subdivided units, the owner of the title is already deceased, unpaid real estate taxes, unpaid estate taxes, other claimants, ridiculous asking price, etc.
Personal Note:Im very particular with documentation because i spent almost half of my real estate career losing a lot of money in court battles because improper due diligence and documentation. I created this guide to save my real estate apprentices from such lose money, headaches and nuisance. A master is once a disaster as they said.
2. APPRAISE THE PROPERTY.To avoid offering properties at ridiculous prices and to save your time you have to find out the Fair Market Value of the Property. There are many methods to find out how much will be the fair offer price of the property. You can have the property appraised by the bank, or you can hire professional appraisals. You can also learn how to appraise properties through several methods. For properties you sell to people for investment purposes you appraise based on the cash on cash return or the profitability of the property based on the development that it possible in the property. For properties to be sold to end users, a bank appraisal is the best. Here you are giving the would be buyer an idea on how they can use the property as an asset and how much they can get for it as a credit line.
3. DOCUMENTS TO GATHER. Get all necessary documents as if you are going to transfer the property already. Get Certified True Copies (CTC) of all documents needed to transfer the property. You are expected to invest money on this so you have to declare that you are really going to work hard and work smart to dispose the property.
4. DESCRIBE THE PROPERTY. You create a very good description of the property. You schedule a non-hurried property tripping and feel the property as if you are the one who bought the property. Close your eyes and imagine that you are the new owner and list down all the reasons why you bought the property. From the list you create a very detailed description of the property and create a very wonderful property presentation. Take pictures in an eye of a potential buyer. For commercial properties or raw lands, list down the possibilities that can be developed or the highest and best use of the properties. After decades of experience in Real Estate, I do not market properties which I haven't visited in person. It would really be unfair to your buyer and investors if you are going to tell lies to them that you have been in the property, that is so unprofessional.
5. CHECK OUT ALL POSSIBILITIES FOR OWNERS BENEFIT. The number one reason the owner is selling is to make money, there are many ways to make money from his property so ask if the property aside from being FOR SALE, can it be FOR LEASE? For PROPERTY MANAGEMENT? For JOINT VENTURE? For BANK FINANCING or CREDIT line? For FUNDING or for DEVELOPMENT?
6. HIGHEST AND BEST USE.List down the highest and best use for the property and for each of the item listed list down potential buyers and investors for them. Find out all possible profile of people who will acquire the property. The best way is to look around the neighborhood and find out what are the profiles of people who are residing or doing business there.
7. CREATE A MARKETING PLAN.From the list above draw a plan on how you can reach those prospective buyers. Create a summary and present to the seller how you will market their property and how much effort and money you will invest to dispose their property so that they will know why they will give you the exclusive right to find a buyer for their property.
8. SECURE YOUR COMMISSION. Now that you showed to the seller your marketing plan and your time table then you must have an Exclusive Authority To Find A Buyer (ATFB). This is to assure your commission before you are going exert your marketing efforts. Under Real Estate Service Act (RESA) to deal with real estate transactions you must be a licensed real estate professional, broker or salesperson. If you are not yet licensed you can join the core team become an apprentice and be trained to become a licensed real estate sales person.
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