This is Fred Wilson, thanks for calling. With whom am I speaking?
Mike, Mike Roberts.
Hi Mike. Hey, this is my land line and, so, I can’t see your number on my screen. What’s your cell?
Oh, sure: 744-277-4201
Thanks. You called regarding Villa Lane, correct? What information would you like?
Yes, 22534 Villa. What’s the current price?”
“Well, it turns out that lot is in escrow. What price range are you looking in?”
“Actually, we’re not looking, we’re comparing.”
“I see. What, exactly, are you comparing?”
“You know, other building lots on the market in that neighborhood. Specifically, what they’re listed for and what they’ve sold for.”
“Thinking of building?”
“Whether or not to, yes. But can’t you just tell me the price?”
“Happy to. The lot you called on is priced at $1,395,000. Although, as I said, it’s currently in escrow.”
“What did it sell for?”
“Once it closes escrow, I can let you know. Or perhaps the seller won’t mind me giving out the contract price to you prior to closing. I’ll call him to ask and, either way, get back to you. Sound good?”
“So it’s selling for less than the asking price?”
“Let me talk with the seller and get back to you with the pertinent information. Earlier, though, you mentioned other building lots in the area. Which other lots have you seen?”
“Well, I saw you had another lot listed. Is it still listed at $1,250,000?”
“Good question; because we’ve just substantially lowered the asking price to $995,000. What do you think about that number?”
“For that lot? I’d say it’s headed in the right direction. I never thought you’d get more than a million for it. Do you think you’ll have to go lower to actually sell it?”
“That’s hard to say. There is someone, with another agent, who’s nosing around at the moment. You want to take a run at it before they do?”
“No, as a purchase, that lot doesn’t interest me.”
“I understand. What is it about that particular lot that doesn’t work for you?”
“The building envelope is too small, the view isn’t so great, and I don’t like how it hugs the mountainside – not enough light.”
“I can see what you’re saying. But I’m curious. What would you do if you could get the property for less than $900,000?”
“It wouldn’t make a difference to me.”
“So, simply not ready to jump in at this time?”
“Well, like I said, we’re really just comparing; trying to decide whether to build or not build. Because, in truth, we already have a lot.”
“Wow, super! In the very same neighborhood?”
“Yes, just a few blocks up the street.”
“Oh, very good. And how does it stack up in comparison to the lots that we’ve been talking about?”
“I like mine better. Which, of course, is a personal thing. Everybody thinks their property is best, right?”
“Ha, good point. But tell me about your lot. When did you buy it?”
“4 or 5 years ago, I’d say.”
“And how much did you pay for it?”
“$1,125,000. Got a pretty good deal. Any idea what it’s worth today?”
“Hmm… A good agent always walks the ground, so I’d first have to do that, and look at a few more recent comparables. Then I could tell you. What number do you have in mind?”
“I prefer to hear what you have to say; you’re the professional.”
“Thank you, appreciate it. And which’s why I’m first going to pull together a few more relevant facts. You mentioned previously that you are comparing things, so let me ask you this... In what ways have you been following the market since you bought?”
“I haven’t, really. But now that we’re thinking of not building, I want to get a feel for what my options are.”
“Got it. So, building is now pretty much off the table for you guys?”
“Probably. There’ve been some changes in our life direction and were now thinking that we don’t want to go through the drill of building.”
“Makes sense. Was what you had previously been
planning set to become your main residence, a getaway home, or perhaps a rental property?”
“Maybe sometime down the road a residence, but otherwise just a weekend and holiday place.”
“Okay, understood. And you’ve lost the desire for a big construction project?”
“Exactly. To be honest, I don’t even know what I was thinking – buying a lot to build on. Particularly when we can pick something up that’s nice but for less than replacement cost and none of the hassle. You agree?”
“Absolutely, I agree. The high-end in that area has never fully recovered from the down market. Right now, if we pay attention, I could get you a great deal on a very nice property. What would you say to buying for, perhaps, 70% to 80% of the cost to build?”
“Right? That’s just what we’ve been thinking.”
“So you and your wife are on the same page with this new direction?”
“I’d say so, yes.”
“And what’s changed in your lives to cause this new approach, away from building?”
“Chiefly, I’m now thinking of retiring and, frankly, I’m tired. We’ve done it before, and just the thought of building exhausts me. As for MaryAnn, with a slew of grandkids having arrived on the scene, she really wants to put her energy in other directions than a building project.”
“I can totally relate. And you want me to sell your lot before you identify a house?”
“Potentially. Don’t want to go long on real estate.”
“Smart. What do you want to sell your lot for?”
“Certainly not less than what I paid for it. Can you get that?”
“Based on what you’ve told me, perhaps. But, again, I need to walk it. What’s the address? I’ll check it out before the end of the day.”
“Darn, I can’t recall the actual street address. I just know it as Lot 22 Villa Lane. Can you find it with that?”
“Sure, no problem. And which has got me thinking... If I like the lot but not so much the market, which is fairly flat, what would you do if somebody offered you $950,000 all cash and just 15 days to close?”
“Under no circumstances will I take less than $1,000,000. If you want to earn a commission, you need to know that going in.”
“And it’s good to know. I, too, would rather go in with my eyes open. Thank you for being up front with me. How about I go walk your lot and get back to you; would 4:00 work or would 6:00 be better?”
“Okay, but you won’t get me later today, so ring me tomorrow morning.”
“No worries; can do. And if the numbers pan out, we’ll get it on the market…sound good?”
“Let’s see what number you come back with and go from there.”
“Great, thanks Mike. Talk to you soon…”
