Assets don’t exist in a vacuum. What matters is how they fit your overall situation.
Yesterday we completed a transaction where a long-time client of mine sold a residential lot at 702 Sperry in Red Oak to a spec builder. Thanks to Dawn Cano of United Real Estate, who represented the buyer.
This was a pretty straightforward deal. A ready-to-build residential lot priced so someone can build a house that fits the neighborhood and still make a fair profit. Not a large transaction, but they all count. And you can’t ignore what might happen later. As you continue to do business, your circle grows, which creates opportunities down the line.
But the most important part here is the seller’s thinking.
I often say that the right way to approach these decisions is to look at how a property fits into your overall financial picture. Everyone wants to sell for the highest amount possible, and historically that has been in the future. But sometimes it just makes sense to sell now.
Sounds self-serving, I know. But it’s true.
This lot was directly behind a couple of retail centers my client used to own. He bought it at a good price, but the real motivation was control. He wanted to make sure nothing went in there that negatively affected his centers.
Since then, he sold the strip centers along with other properties in the area. This lot became the only thing he owned on the south side of the DFW Metroplex.
So the original reason for owning it was gone.
At that point, he was just holding it and paying taxes.
So he stepped back and looked at it.
Does this still fit what I’m doing?
The answer was no.
So he decided the smart move was to sell it and deploy the proceeds somewhere else. Somewhere that aligned with his current strategy.
We put it on the market and got it done. We didn’t give it away, but we also didn’t nickel-and-dime the buyer. When a reasonable offer came in, we accepted it and moved forward without worrying about whether it might be worth slightly more next year.
He’ll put the money somewhere else, and hopefully that’s worth more next year.
That’s what I mean when I say look at the big picture.
Sometimes it makes sense to sell when you didn’t expect it.
Sometimes it doesn’t.
But you don’t know unless you allow yourself to look.
You’re not tied to any particular decision or timeline. But you should give yourself the chance to make the right move, whatever that ends up being.
PS – If you own lots or land, you’re probably not thinking about selling today. If you don’t live on the property, there’s usually no pressure.
But is it a bad idea to know where things stand?
That’s where the MBR Land Reality Check comes in.
It’s an in-depth look at recent nearby sales, market trends, development activity, and the types of buyers who might be interested in your property right now.
Once you have it, you still don’t have to make any decisions about selling. But you’ll have what you need if things change.
Allow yourself to take a look.
Get the MBR Land Reality Check here.
PPS – If you’re not ready for the Reality Check but like this kind of thinking, you can sign up below to get these in your inbox.
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