Case Study

Industry: Land Brokerage

Region: North Texas

Assignment:

1. 115 acres in Grayson County had been on the market over 1,436 days and the listing expired without a successful sale/disposition.
2. Contact land owner, acquire an exclusive listing agreement, market and sell the property in 6-12 months.

Approach:

• Discuss with the client their understanding of why a lack of disposition for this property occurred. Based on this conversation, identify key issues over the past four years that led to previous broker’s lack of success in selling the property.
• Initiate a market study to identify recent, comparable sales in the area over the past 365 days. Based on the market study and the client's timeline for sale, develop a marketing plan for disposition.
• Inform client of the results of market study and at what price the property should sell for over the next year.
• Prepare marketing materials for the listing and upload the information to both local(MLS) and national real estate databases(Costar Commercial Real Estate).
• Take an active approach to marketing and selling the property by acting on initial interest in the property and successfully driving negotiations to fruition.

Outcome:

The property was on the market for approximately 18 days before being put under contract at $33,500 over list price. SRC was able to leverage the initial interest in the property to gain two additional advantages: multiple offers allowed SRC to negotiate extremely favorable economic terms and negotiate $10,000 in earnest money for our client. During this initial contract, the buyer’s backed out before closing and our client’s received the $10,000 in earnest money for breach of contract. After 80 days on the market, SRC successfully negotiated a full price cash offer with a closing date under 30 days, $1,000 ten day option period, and another $10,000 in earnest money. Due to SRC's efficiency and aggressive negotiations, our client was able to purchase a new survey with the initial earnest money and in addition sell their property at list price. The sale of the property was a welcome relief for our client’s after nearly four years of unsuccessful attempts by previous real estate brokers. In the end, the business approach to real estate that SRC utilizes gave a strategic advantage to the land owner and made sure they were insulated from the unpredictable nature of real estate transactions.