How To Attract The Right Buyers When Selling Property
When selling property, you’ll want to find the right buyers who are not only interested but also capable of completing the transaction. This involves identifying and engaging the right audience. A well-planned marketing campaign and a targeted approach can help sellers achieve the highest and best use for their property.
At the beginning of the process, it’s important to cast the net wide to find potential buyers. As the sales process is brought to a head, sometimes the highest offer is not the best one. Terms are equally important. What is paramount is dealing with a buyer who has credibility, which we’ll look at in the next article.
Consider the following points during the beginning of the sales process to attract the right buyers:
Know Your Buyer Types
Whether you are selling multifamily housing, a retail space, an office building, or a development site, the profile of the buyer can vary. Much will depend on the property’s intended use and market value. Here are four key types of buyers to consider:
1. Buyers with Experience in the Area
One way to attract serious buyers is to reach out to those who have already purchased similar properties in the area. These buyers are often familiar with the market, understand the local dynamics, and are likely interested in expanding their real estate holdings. Experienced buyers with a proven track record in your property's type and location could be more likely to make informed, competitive offers.
2. Neighboring Property Owners
Nearby property owners can be some of the most motivated buyers. These individuals already have a vested interest in the area and may be looking to expand their holdings. They might benefit from economies of scale, and owning additional local properties can create synergies and increase value. Even if they are not personally interested in the purchase, neighbors might know other investors or developers who would consider it.
3. Active Investors
Brokers often maintain lists of investors actively seeking specific types of properties. These investors might have geographic preferences or be in the middle of a 1031 exchange, which requires them to reinvest capital gains into a new property within a certain timeframe. You can read more about 1031 exchanges in my book, “The Insider’s Edge to Real Estate Investing.”
I learned the strategy of keeping a top 125 list from Blaine Strickland. This identifies the most engaged buyers, sellers, and investors in a geographic area or asset class. With a list at hand, you can reach out to individuals who may be interested in the property. You can listen to an episode on my podcast, “The Insider’s Edge to Real Estate Investing,” which features Blaine to learn more.
4. International Buyers
In certain cities or regions, foreign investors might be looking to real estate as a way to diversify their portfolios or establish a foothold in an area. It may be worth reaching out to them to gauge their interest. In some cases, they could be ready and willing to act quickly and carry out a transaction.
The Importance of a Specialized Broker Network
Not all brokers specialize in every type of property. When selling a mixed-use building, for example, it can be helpful to work with brokers who understand both the residential and commercial aspects of the property. Similarly, if the ground floor of a property is vacant and could be used for a restaurant, working with brokers experienced in leasing retail spaces can increase your chances of finding the right buyer.
Attracting the right buyers when selling a property requires more than just casting a wide marketing net. You’ll want to consider experienced buyers, neighbors, active investors, international interest, and the expertise of a well-connected broker. By understanding the type of property and its highest and best use, sellers can work with their brokers to create a targeted outreach plan that appeals to the most relevant buyers, ultimately increasing the chances of a successful transaction.