In one of my earlier post (The Big Secret to Success in Real Estate is only Two Words...) I wrote about how important Honesty and Pricing were in your business.  Today I proved my point and wanted to share the experience with all you rainers...

Ok I had some Developers contact me some time ago about buying several lots I had in Southwood a subdivision I have listed.  They were thinking of building a few spec homes in that neighborhood while they waited for the Beach Market to stabilize...The smartest thing I have heard from them to date....

So I give them a CMA of what homes are selling for...Current number of lots on the market, Selling price of the competition lots, Current attrition rate, what price range is over supplied , where the gaps in the market are, etc, etc, etc...  I guess they have never dealt with a land broker before, because no one had ever broken down the numbers like that for them before.  Like I told them this is what the big builders are doing, and why they are so successful....It's the numbers, and as a developer if the numbers don't work you walk away...

Anyway a few weeks later they called me into their office and ask me to analyze a small subdivision they were planning to do...What a mess...  First they paid way, and I mean WAY too much for the property.  It was in the nicest area of Loris, but still there is now way you can make those numbers work.  Of course the agent that sold them the property told them it was a great deal and they could make BIG BUCKS on this deal.  Yeah Right!!!  Not only have they paid to much for the property, but they have had it engineered twice...and paid interest for over a YEAR NOW!!!

I put all my numbers together present the complete package...And the first words out of my mouth are you guys are screwed!!!  You can imagine how the rest of the meeting went...A lot of blaming, pointing fingers, and telling me how wrong I am...So I ended my presentation by telling them what I thought the best course of action was....Mind you I have the NUMBERS to back up what I am telling them...Then I tell them they should talk to several other agents and see what there numbers say...But make sure they show you the numbers. 

A few weeks later they call me and say I'm right and they want me to help them cut their losses.  I come back in, and I'm sure to ask how it went with the other agents.  Of course they all said they could sell the property for what they wanted for it, some even more...But not one of those agents had any numbers to back it up...

So we talk pricing and they are still trying to list them for more than the property is worth...What you have in the property has nothing to do with what someone will pay for it...So for the second time I walk away from listing these properties.  They call and we argue back and forth for a couple of days...Finally feeling that they were getting now where with me, (after all negotiating is what we do for a living) they give in.

I list the properties and almost immediately I get an offer on two of them...We worked out the fine print today nearly full price, cash deal, with no contingencies, closing in less than 14 days...And I have someone flying in this weekend to look at the last one.  No rocket science just honesty and pricing.  That is all it takes...

I've said it before if you are honest to people and price properties correctly they sell.  Not only was I able to move the property fast saving them money on interest payments, but because they listened to me I discounted my rate just to show I'm fair.  You can't even imagine how ecstatic these guys are... They think I some sort of miracle worker... They now what me to do the numbers on three more properties they are starting to develop.  Guess what guys, I bet they listen this time. 

Try this sometime...Don't be afraid to tell someone they are going to lose money...If you're honest and can back it up with some solid numbers they can not refute you...Stick to your guns, and they will respect you.  List and Sell the property and you have a client for life!!!