Investors United : : Ask Ian Blog

  Today, even time-pressed homeowners can sell their property quickly using simple marketing methods that are often overlooked. With a friendly title company to write up and record the transaction, selling real estate can be fast, easy, and inexpensive.

  Typically, people sell real estate by: 1) hiring an agent, 2) hiring an auctioneer, or 3) selling the property themselves. But more important than who sells the property, is how the property will be marketed best. The key to selling anything is to make the public aware of the opportunity. Consider the following creative marketing methods to best market your properties:

1. Prepare a Flyer
  The first step is to create a detailed flyer about the property. Your flyer should display a picture of the property, its address, your contact information, and all positive attributes and potential benefits. Include specifications such as bedrooms and baths, heating, cooling, plumbing, electric, windows, roof, upgrades, zoning, proximity to landmarks and schools, and any special incentives or warranties. Tape an envelope full of your flyers to the front door and distribute them to potential buyers.

2. Price It to Sell
  Given holding and opportunity costs, there is a time value of money. Instead of waiting for top price, take advantage of the time value of money by establishing a price at or slightly below market. To determine market value, examine recent sale prices of nearby comparable properties. In Maryland, visit www.dat.state.md.us or have a friendly real estate agent pull “comps” for you. Compare your property to others with the same zoning, features, and amenities, then set a price to attract buyers.

3. Use the Internet
  Within seconds, any search engine can locate dozens of For-Sale-by-Owner (FSBO) websites. Log on and chat with potential buyers. For greater exposure, consider listing your real estate on the multiple listing system. Several Internet companies offer inexpensive listing services without the need of an agent.

4. Network with Investors
  Local real estate networking meetings are excellent places to advertise property. Find investment clubs using the Internet. Distribute your flyers and be prepared to announce your opportunity to the group. Selling to an investor does not mean “giving it away;” on the contrary, entrepreneurs can often structure creative transactions to offer you more than expected.

5. Attend Auctions
  Real estate auctions draw crowds of cash buyers, so go where they go. Introduce yourself to bidders, promote your property, and if the auctioneer allows it, distribute your flyer. Consider holding your own auction. Although the allure of bargain property drives the popularity of auctions, competition among bidders often drives prices skyward. Moreover, auction sellers bypass contingencies, commissions, and closing costs. They receive cash in 30-45 days, and can accept or reject the highest bid. You do not need a license to auction your own property, but consider hiring a professional auctioneer registered with the National Auctioneers Association (www.auctioneers.org) such as Auction Brokers.

6. Explore Regionally
  Residential buyers frequently come from the immediate region, so cover your bases with newspaper ads. You can increase response with phrases like “owner financing,” “flexible seller,” or “trades accepted,” but mean it. Also, make your flyer available at regional libraries, places of worship, colleges, hospitals, and businesses.

7. Look Locally
  Given that they are already invested in the area, neighbors are excellent prospects. Be proactive and offer your property to local owners by phone or mail. Affix a “For Sale” sign or banner to the property and use directional signs to attract attention from side-streets.

8. Turn Tenants into Buyers
  Tenants are an untapped source of buyers. To find them, identify absentee-owned property in the public record, then call or knock on those doors and introduce them to the opportunity of home-ownership. A mortgage payment might be less expensive than rent. Refer them to a friendly banker who will help with funding.

9. Accept an Annuity
  Perhaps the best way to induce a sale is to take back financing. Many people would rather pay a little more to you, than deal with mortgage brokers. In the long run, you can sell for a higher price plus an interest profit. In the short run, your annuity can be sold for cash, leveraged as a down payment on other property, or exchanged for value.

10. Hold an Open House Event
  Like auctions, open houses generate competition among buyers. To heighten desire at her luxury open house event, a friend rolled brown paper throughout the house to protect the floors, asked prospects to remove their shoes, and limited the number of buyers allowed in the house to three at one time. After the spectacle, she asked the buyers to write their best offer on a blank page, and allowed only the top three bidders to stay for an impromptu auction. She sold for $130,000 more than expected.

Ian Charles Parrish is a professional real estate investor and founder of Investors United School of Real Estate – America’s 1st and only career school dedicated exclusively to real estate investing. Read Ian’s Blog at InvestorsUnited.com

Learn more creative real estate ideas by taking Real Estate Contract Engineering online or by contacting Maxine in Admissions.

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