Unsplash
How to Sell a Property Using the Expansion Potential in 7 Days
Selling a property by highlighting its development potential can lead to faster and more profitable deals. This method, inspired by successful real estate development strategies, provides a 7-day step-by-step approach for agents to identify, present, and close deals with added value opportunities. By leveraging development analyses and strategic negotiations, both buyers and sellers achieve their goals while agents secure competitive fees.
Day 1: Identifying Properties with Development Potential
Start by obtaining a list of newly listed properties on the market. Focus on ten properties that match your target market, for example, "Single-family homes under $1M."
Log into your CityStructure account to check which properties have development potential. Copy and paste the addresses into the Property Search Box. Apply development filters to identify properties with, for instance, a Development Score above 50 for vertical expansion and above 100 for ADU potential.
Once you have your refined list, review the Development Score pages for each property. Select the most promising properties and create a branded link to share with your contacts. Include this link in your regular email updates.
Day 2: Engaging Buyers
Unsplash
A contact interested in adding value to properties opens the Development Score page and finds a property in a suitable location with the right building type. They need pricing information and reach out to you directly through the Development Score page.
Coordinate with the listing agent to schedule a property tour. During the tour, your buyer may be uncertain about the potential improvements, costs, and profits. To address this, access the Development Score page together and order multiple analyses to help determine the best value-adding option.
Day 3: Reviewing Development Analyses
CityStructure delivers detailed analyses to you and your buyer. These reports outline various development scenarios, associated costs, and potential profits.
After reviewing the analyses, your buyer selects the development option that aligns with their investment goals and contacts their lender to get pre-approval for a loan to cover improvement expenses.
Day 4: Loan Pre-Approval and Offer Submission
With pre-approval secured, you and your buyer draft an offer to the seller. To ensure the buyer can meet their value-add goals, make the offer contingent on the city issuing permits for the proposed improvements listed in the Development Analysis. In return, the seller receives an attractive offer price.
Day 5: Negotiations Begin
Both parties enter negotiations, discussing terms that align with the buyer’s goals and the seller’s interests.
Day 6: Finalizing Negotiations
Since this approach is innovative yet appealing, additional negotiation may be required to clarify terms and build mutual confidence.
Day 7: Contract Signing
Unsplash
The contract is signed, marking the successful conclusion of the deal.
The Win-Win Outcome
Buyer: Purchases a property with clear improvement potential as outlined in the Development Analysis.
Seller: Receives a strong and competitive offer.
Agents: Earn fees upfront for their service and/or at closing.
Conclusion
This streamlined, development-focused approach benefits all parties and demonstrates how leveraging property expansion potential can lead to faster and more rewarding real estate transactions.
Get specific answers on costs, size, and value with a Development Analysis.
Related Articles ...
Resources