Best way to unload Real Estate?

[Mach1]

I am Real Estate heavy but that about to change. My target ER date is May 2010/2011 so within the next five years I want convert all my Real Estate holdings to roughly 60/30/10 ratios. The holdings consist of two commerical office/retail buildings, two houses (one is personal home, the other is a new construction on the market for 3 months) and two residential lots. Far as I know, to unload them, I can list them with a Real Estate Broker or two, or FSBO (I prefer not). Should there be a marketting stategy? is there a better way? Please share your thoughts and wisdoms.

Mach1

 

[Patrick]

I tried a flat-fee broker who put my property in MLS and gave me a sign for the yard. Didn't work. I heard that other agents can figure out who these guys are and boycott them since they can't get the listing commission. I wound up a using full-fee agent. It wasn't cheap, but the property sold. I read that over 95% of properties are sold through a full-fee agent and the MLS.

I would interview a few agents and ask them what their marketing plan is. Here it varies from just putting the listing in MLS and waiting, to newspaper ads, magazine ads, virtual tours, postcard mailings, and open houses. I'd pick the one that will do the most for the smallest commission, then write on the contract what marketing they will do for you before you sign - verbal agreements don't count. Good luck.

 

[Arif]

I've had good experiences with the flat fee MLS. Agents call me up and I give them the lock box code to view the house themselves. It has saved me thousands of dollars. Even if it took 3 months longer to sell, the savings by going flat fee is still substantial.

Edit: To your commercial properties. You can list them on www.loopnet.com for a small fee. I listed two multifamily properties on their site and recieved a lot of inquiries resulting in contracts in less than two months.

 

[modhatter]

I also used a for fee service in Phoenix, AZ this year. Worked great. Sold it in four days. Of course it was cheap and had just been completly remodeled. But the point is I gots lots of calls and no problem with it beiing shown. Plan to do it again soon, although market has really tanked here so we will see. (FL)

 

[kcowan]

I would try the DIY (with a fee advisor) and if it does not work in 6 months, upgrade to a full-service broker.

 

[Mach1]

Thank you all for the replies. Arif, I checked out loopnet.com, it looks promising. How did you hear about it?

Mach1

 

[Jane_Doe]

Mach1-

I assume you have an accountant who does your tax returns. Remember you will need to know your cost basis and also figure in the depreciation that you have been writing off over the years. Sit down and calculate what the end result AFTER taxes will be on the sale of each property. you may want/need to do some 1031 exchanges and slowly liquidate.

The only definite things in life are death and taxes ..................

Good Luck!

Jane