5. Marketing and the Sales Process In this module, we will discuss: Developing a marketing plan Marketing land for sale The sales process

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.

Developing a Marketing Plan Goal is to match user requirements with parcel characteristics

Step 1 Select a target market—collection of individuals, syndicates, investors, or developers most likely to purchase the property.

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

Package the Property Communicate property attributes: Formal presentation and brochure Flyer Advertising

Formal Presentation and Brochure Detailed report of specific characteristics of the property Economic data including asking price Legal matters including quality of ownership Social factors Professional presentation Photographs

Detailed Report Documentation of property characteristics: Topography Color photo Location Soil types Aerial photo Drainage Topography Improvements Access to transportation Access to utilities

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: Information on local markets Comparable sales data Projected income Actual operating figures Price Terms Taxes Yields

Legal Issues Describes the quality of ownership and control offered by the seller. Legal matters that should be included: 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

Social Factors Community attributes to give the buyer a glimpse of cultural and social life in the area, including: Schools Fire protection Law enforcement

Professional Presentation 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

Flyer Summary of formal presentation Well-composed photo Info on land One page long

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.

Sale Process Traditional sales Auction Sealed bid auction Public auction Private auction sales

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.

Sealed Bid Auction 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.

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

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.

Group Activity As a group, determine how you might market or package the property for the Sawgrass ranch.