Transcript 2007 Module 5 Slides

5. Marketing and the Sales
Process
In this module, we will discuss:
• Developing a marketing plan
• Marketing land for sale
• The sales process
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Marketing Land
• Land does not sell itself!
• Land is rarely purchased on impulse.
• Land must be marketed properly for it
to be sold at its full value.
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Developing a Marketing Plan
• Goal is to match user requirements
with parcel characteristics
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Step 1
Select a target market—collection of
individuals, syndicates, investors, or
developers most likely to purchase the
property.
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Step 2
Package the property & develop a
marketing plan:
Agree on asking price
Sign listing agreement
Derive the uses and limitations
Convey property is available
Communicate exclusive attributes
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Package the Property
Communicate property attributes:
• Formal presentation and brochure
• Flyer
• Advertising
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Formal Presentation and
Brochure
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Detailed report of specific
characteristics of the property
Economic data including asking price
Legal matters including quality of
ownership
Social factors
Professional presentation
Photographs
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Detailed Report
Documentation of property
characteristics:
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Color photo
Location
Soil types
Aerial photo
Drainage
• Topography
• Improvements
• Access to
transportation
• Access to utilities
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Economic Data
Documents the highest and best use
conclusion and also depicts the property
and its place in the national, state, and
local business environment.
Includes:
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Price
Terms
Taxes
Yields
• Information on local
markets
• Comparable sales data
• Projected income
• Actual operating figures
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Legal Issues
Describes the quality of ownership and
control offered by the seller. Legal
matters that should be included:
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Legal description
Name of owner
Zoning
Water rights
Mineral rights
• When possession can be taken
• Easements on the property
• Encumbrances
(including CRP leases)
• Permitted uses of the land
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Social Factors
Community attributes to give the buyer a
glimpse of cultural and social life in the
area, including:
• Schools
• Fire protection
• Law enforcement
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Professional Presentation
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Table of contents
Listing of major property factors
Description and prices of properties
Analysis of land
Analysis of improvements
Income analysis
Location analysis
Statement of limiting conditions
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Flyer
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Summary of formal presentation
Well-composed photo
Info on land
One page long
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Advertising
• Signs, billboards, on-site signs,
and posters
• Letters (direct mail)
• Newspaper
• RLI Marketing Sessions
• Electronic media
Each method has advantages and disadvantages.
Methods may vary depending on type of land and
target market.
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Sale Process
• Traditional sales
• Auction
–Sealed bid auction
–Public auction
–Private auction sales
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Traditional Sales
When a land broker “lists” a property for
sale, they agree with the seller with whom
the property information will be shared.
So…
• Do not assume you are going to be
offered cooperation or compensation.
• Determine the level of cooperation or
compensation before showing the
property.
• Confirm negotiations in writing.
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Sealed Bid Auction
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Property information package prepared.
Advertising placed.
Deadline time and date is established.
Bids are kept confidential.
Successful bidder is announced.
• Allows seller more control over the
auction process.
• Allows seller to exert control over
selecting the eventual buyer.
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Public Auction
• Prepare detailed property information
package
• Advertising placed
• Auction time and place set
• Buyer prospects gather
• Bids through auctioneer or other auction
systems determine selling price of property
• Average or above average quality land with
multiple motivated buyer prospects
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Private Auction Sales
• Lands auctioned through lawyer, bank, or
trust department
• Prepare detailed property information
package.
• Extensive promoting
• Targeted prospects
• Well executed marketing plan provides a
seller with a market sale.
• A poorly executed marketing plan provides
informed buyers to buy below market price.
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Group Activity
As a group, determine how you
might market or package the
property for the Sawgrass ranch.
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