Q&A: LAND(ING) A CLIENT’S TRUST AND BUSINESS
LAND FOR DEVELOPMENT
Next we had an interesting discussion about the challenges of marketing and finding the right client matches for buying and selling land for development.
NN: Jacqueline, how do you find the Land for Development?
JD: Cold or warm calling, research and knocking on doors.
NN: But how? is there a process or a system?
J: Yes, there is a process I follow. In the beginning of my real-estate career, there was not much access to data like today, so you either had be introduced to the property owner. Or you have to purchase the zip code and send letters, research the white or yellow pages to get the phone numbers, show up and ask around. Today, it is easier with the various web sites and connections.
NN: How do you engage in a listing contract? Do you cold-calling seller out of the blue?
JD: Sometimes, I will usually go after a listing when I get a buyer and their “product” is not available for sale in my private data or among the brokers, as I explained before. I have an objective to pursue, so my engagement with the owner of the property is more warm than “chasing a listing.” I also go after listings when I see the market is shifting and there is going to be demand for a specific product.
NN: How do you get the listing?
JD: Based on the relationship I have with the property owner. The hardest is when owners are not ready to sell — or they don’t know you. Hence they don’t trust you because there are many agents seeking listings by “telling the story they have a buyer.” So I come back with the letter of intent to purchase to show I have a real buyer. I then facilitate the communication with both, buyer and seller, as if it was based on a cold call.
NN: So, if you come out-of-the-blue with the offer, do you influence the owner to sell and pay you a commission?
JD: It doesn’t work that way. First of all, if I come with an unsolicited offer, the quicker the seller can accept, think about, or reject it. Also, there is a misconception that sellers are the only ones that have to pay commission. There is no law that requires this. If my client is the purchaser, I will secure a buyer-representation agreement where I state that buyers pay me for my services.
… To Be Continued
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