Question

Topic: Strategy

Selling Real Estate Far From Location - How?

Posted by Anonymous on 6/14/2007 at 4:56 PM ET 125 Points
My guardian parents that live on a coastal town in South Africa (Somerset West), finally decided to close their butchery and divide their smallholding (situated on prime ground) into about 30 plots. They have set up specifications etc for the building styles (Tuscan), which their son, a commercial estate agent, is marketing and managing for them. They are struggling to sell the land. After some investigation I found out that they haven't overcharged on the plots. They also advertised, but I'm aware of the fact that they did not advertise enough. An artist drew an attractive futuristic drawing that illustrates the upcoming estate nicely. The ad lacks absolutely no visual elements - very tasteful and not too busy. Unfortunately their budget just doesn't allow them as the servicing of the area cost them a fortune and they are now a bit out of pocket. There are no buildings on the site yet. Two plots have been sold and the owners will start building by the end of the year. The interest rate in our country has just increased, and is on the verge of another increase.

I live 700 miles inland, in our capital, Johannesburg, where most of the economic hustle and bustle happens. I suspect that there might be plenty of prospecitve buyers here in Johannesburg, as there are many residents of this city that go to Somerset West and surrounding areas on vacation. Somerset West is also big on retirement as it is a beautiful area, surrounded by mountains, and with that real "country feeling" but yet close to everything the city can offer.

How do I go about finding buyers in Johannesburg for a piece of land 700 miles away from here. I am willing to spend some money out of my own, but as an individual I cannot afford to take alot out of my pocket. I was thinking of doing a bit of editorial, maybe telling prospective buyers about Somerset West, all the wine farms etc together with a strip ad or something advertising the property.

What do you think?
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RESPONSES

  • Posted by Chris Blackman on 6/24/2007 at 7:30 PM Member
    Suppose you gave 3.3% (one of the thirty blocks) to a national charity (i.e. one with a presence both in Jo'burg and Somerset West) to run a lottery to raise funds.

    The charity could then promote the auction as a genuine fund raiser, while your parents could probably claim the donation as some kind of tax deduction.

    The charity's promotional efforts will provide a springboard for your own sales efforts. Especially if you can arrange viewing days or tours for prospective ticket-buyers.

    Pick your charity carefully. You need one that will promote the lottery well and will work with you on a promotional strategy which fits with your own strategy for the remaining properties.

    Hope that helps.

    ChrisB
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