I’m on the board of a property owners association in Wilkes County, NC (near Blue Ridge Parkway). Occasionally, the Association ends up taking over parcels of land from owners who are delinquent with their annual dues. What is the best way for the Association to sell these properties? Listing of raw land with an agent tends to be expensive (commissions range from 10-25%) and is quite slow. I know that Craigslist is an option, but I’m unsure how well that works in rural places. Any other (more creative) ideas?
@Andrew S. Well, price cures all “slowness” but Craigslist is probably your best bet. From what you’re saying it doesn’t look like there are utilities or anything else. Hopefully road access? If people are walking away it sounds like you’re looking for a buyer with emotion that “wants land” rather than someone who is looking for discernible ROI. If it’s desirable land that just lacks infrastructure, why wouldn’t neighbors just buy the parcels to extend their land?
Originally posted by @Andrew Johnson :
Andrew S. Well, price cures all "slowness" but Craigslist is probably your best bet. From what you're saying it doesn't look like there are utilities or anything else. Hopefully road access? If people are walking away it sounds like you're looking for a buyer with emotion that "wants land" rather than someone who is looking for discernible ROI. If it's desirable land that just lacks infrastructure, why wouldn't neighbors just buy the parcels to extend their land?
Thanks, Andrew - yes, we ARE gauging neighbor's interest (I forgot to mention that), but in some cases those neighbors are in some distress themselves and just aren't able to buy more, or aren't interested in adding more to the 10 acres they already own. Yes, there is road access as well as electric and fiber cable (for phone/TV/internet). In fact, the road maintenance dues are what got these owners into default (along with the County property taxes, I suppose).
@Andrew S. Yikes, defaulting and neighbors in distress due to road dues and property taxes? This sounds like an emotional Craigslist style purchase to me rather than an investment. Broadcast wide and sell it cheap. I wish I had a better answer for you.
Just to close the loop: Craigslist worked well - a lot of interest. Property sold above expectations.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.