Ontario Tax Sale Property Forum
Tax Sale Forum => Questions and Answers => Topic started by: worldjohn on January 08, 2010, 01:02:03 AM
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Anybody have any tips on how to sell land they've acquired on a tax sale?
I had some success using Craigslist and kijiji a few years ago but it seems harder lately. I think its because so many ads posted there now that my ads dissappear from the top page very quickly.
I recently been contacted by "bytheowner.com" trying to get me to list with them but its rather expensive. Any similar free sites?
Is using a real estate agent and MLS worth it for properties under 20K. They dont seem to be very interested and request 10% commissions.
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I use local RE agents, and hold firm at 5% commission, or less. I price the properties for quick sale, and I stick with that agent in that area.
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Anybody have any tips on how to sell land they've acquired on a tax sale?
I had some success using Craigslist and kijiji a few years ago but it seems harder lately. I think its because so many ads posted there now that my ads dissappear from the top page very quickly.
I recently been contacted by "bytheowner.com" trying to get me to list with them but its rather expensive. Any similar free sites?
Is using a real estate agent and MLS worth it for properties under 20K. They dont seem to be very interested and request 10% commissions.
Put yourself in the r.e. agents shoes....you've got a remote property worth less than 20k. Advertising, etc... work involved...how much are you going to make on it. Usually expect a 10% rate in these situations...8% if he acts on both sides of the equation. Is this an island, or boat access property...if so, he has to take potential buyers out buy boat...how much is that going to cost him. Not that I am overly sympathectic to r.e agents, but in those cases they make very little bottom line.
I've had good and bad experiences with r.e. agents...half the times I will sell property, especially if vacant, without one...just put up a sign and wait.
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Worldjohn:
I think one of the basic issues as well is should you put any money into the property after the tax sale. Raw land is different then if you have a building on the property. I think as well location is a key consideration. ie country versus city.
For the city I will defer to some of my more knowledgeable members of this board; In the country with a building if you are to get any value out of it you have to at least do some basics so the shell is intact. Beyond that I think it really depends on the situation.
Normally for country land I at least try to get a survey and usually I fork out for a premium survey with topographical features and the development area (ie. setbacks). For some of my properties I have a rezoning underway; but it really depends on what you bought and who is likely your target audience. A quick flip with below market prices bought at a really cheap price is different then something you bought with the idea that it would be sold for putting a building on.
First I think you have to answer the question; who will buy it and why?. Hunting land is a much different market then a building lot close to Toronto. I agree with the comments about real estate agents for much of these properties. Normally the commission level means they will not put any effort other then posting a sign and on MLS.
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Follow up question.
If selling land privately, what is the best way to proceed once someone is interested. I have someone interested in one of my lots. He wants me to send him all the info regarding roll numbers, legal description, my full name and address etc and not get lawyers involved until the end. Since he found me on Kijiji Im wondering if he's trying to scam me out my my land somehow.
Am I being paranoid?
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I am sort of in the same boat. I got stuck with this land from a tax sale 2 years old. I demolished the small house and now left with a narrow land that needs a buyer to develop them. Don't have the money, expertise and time to invest in a building project by myself. It's a long story and valuable learning lesson.
http://taxsaleproperty.org/forum/index.php?topic=1163.0
Worldjohn: Those roll numbers, legal description and your info are available for the public through a title search if your potential buyer wants to do some research on his/her own. I don't think it hurts to give out identifical info if they are on your title. You should have a lawyer involved to protect your rights in the final stage.
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Follow up question.
If selling land privately, what is the best way to proceed once someone is interested. I have someone interested in one of my lots. He wants me to send him all the info regarding roll numbers, legal description, my full name and address etc and not get lawyers involved until the end. Since he found me on Kijiji Im wondering if he's trying to scam me out my my land somehow.
Am I being paranoid?
Worldjohn:
I think the best way to protect yourself is to control the process. First I would ask him to give you a phone number. You can then reverse phone check using 411 to see who is registered to that phone. Next I would offer to prepare the offer of purchase and sale for him.
You will need his address etc. If you are going to get into a VTB you obviously need to do a credit check.
Ideally I would like to meet him or her (it gets expensive for someone from Nigeria at that point) but at the end of the day you will be exposed because a legitimate buyer needs your information.
Of course meeting someone can have its own risks and rewards like the time I met a beautiful young landy in conjunction with one of my properties who had substantial assets and as my luck would have it as the lawyers say it was obvious they were unemcumbered. Unfortunately I wanted to have a witness to the discussions and I brought my chaperon along. :'(
I must say it was one of the tougher business meetings I have had over the years.
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I am sort of in the same boat. I got stuck with this land from a tax sale 2 years old. I demolished the small house and now left with a narrow land that needs a buyer to develop them. Don't have the money, expertise and time to invest in a building project by myself. It's a long story and valuable learning lesson.
http://taxsaleproperty.org/forum/index.php?topic=1163.0
Worldjohn: Those roll numbers, legal description and your info are available for the public through a title search if your potential buyer wants to do some research on his/her own. I don't think it hurts to give out identifical info if they are on your title. You should have a lawyer involved to protect your rights in the final stage.
Ouch.
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We can all learn from Markmark's bad experience: never demolish small house (no matter how bad it is) until you know how you can go forward. Even condemned buildings can be rehabbed, and it cost me about 200k to find that out, and that some municipal empoloyees lie just for their own amusement.
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We can all learn from Markmark's bad experience: never demolish small house (no matter how bad it is) until you know how you can go forward. Even condemned buildings can be rehabbed, and it cost me about 200k to find that out, and that some municipal empoloyees lie just for their own amusement.
Sounds colse to my ongoing case :( . PMed, if you can share your experience privately. Thks.
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We can all learn from Markmark's bad experience: never demolish small house (no matter how bad it is) until you know how you can go forward. Even condemned buildings can be rehabbed, and it cost me about 200k to find that out, and that some municipal empoloyees lie just for their own amusement.
It wasn't me.(Quoted from Shaggy)
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Shaggy? Didn't know I needed the barber that bad!
It cost me in lost profit and excess operating expenses: 1974, or so, industrial zoned large lot in GTA city of about 100,000 population, 20 x 20 2-storey house, condemned, for sale, called city to ask about rehabbing the house, building insp said no can do, it must be demolished; acquaintance bought it, DIDN'T call the building inspector, rebuilt the ground floor one wall at a time, did same on upper floor, moved in, threw up a large metal building, sold it 3 years later for $250k+.
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Sorry Ernest.Shaggy is a pop singer who sang the song It wasn't me.
Property in St.Catherines 17 x 288 bought at tax sale,it wasn't me.
Torn down small building,it wasn't me.
Curious to know how small the building was though.11ft wide?
Smilesnoopy selling a 17ft lot sounds tricky,I'm assuming no building permit.
Neighbours may want it if you drop a mobile home on it,or sink posts for a 20 x 30 billboard,dog kennel etc.
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I did all my research on the title and execution search back then in Dec 07. It has potential to develop as a rental because it is close to Brock U. Thus, I bid and won the property among the competitions by a few thousands.
The house was vacant and I can't enter until I won the bid. I was naive enough to think 20k will fix up this small house well just from the outside before I bid. I attached some photos. Well, I never expect the condition of that house is that bad after I entered.
The city gave me an unsafe building notice to demolish that small house (around 350 sq. ft.) a bit later. It was an abandoned house for 5+ or 10+ years. Raccoons lived in it. The city needs a professional structural engineer report and environmental consultant report if I want to keep the building. I give it up to fight with them after a structural engineer takes a look. It can be done, but it will not worth the money and effort to fight with the city. Then, I also found out I can still build something out of it from scratch with a R2B zone. It will require some interesting design to satisfy the setback for the side. I worked with city planner a bit on that end. Well, I don't want to spend more $ on it. I actually got a buyer last year, he actually got approval from the NPCA. Then, he had some financial issues and back up from his offer.
Any advice to get rid of the land and sell it? My agent has been working on it for years. The neighbour wants to buy it for 15k. That's the worst case backup plan. If I waited for 2 years, I can still wait. There are minimal costs or trouble for me right now as the old house is gone. That's a brief summary of what happened.
http://www.realtor.ca/PropertyDetails.aspx?PropertyID=9034475
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That's a shot of the inside before any clean up. It is like, "well, worst case happened and may be 20k can't fix this up."
I took it inside the living room looking at the kitchen and bedroom. It is like a small bachelor apartment inside.
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Did you tear this down to repair the existing foundation?
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I demolished the whole house and level the ground for now. In order to fix the foundation, the structural engineer said I will need to jack up the whole house and then repair underneath it. The cost to perform this work will be too much. Well, it is not a historical building.
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To jack up the house to fix some foundation blocks is exactly what my contractor suggested for my property. I just need engineering approval now. Can you share your engineer's contact info please? PM please. Thanks.
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Jayz
What area are you looking for an engineer
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Jayz
What area are you looking for an engineer
Muskoka area up to North Bay would be perfect. But anyone wouldn't mind travelling that far will do.
PM for further please.
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Sorry to go back on topic here.. I have put a property on craigslist a couple of times. It ended up going nowhere. People wanted a complete escort to the property from toronto to parry sound and then a tour of the property. Just not worth my time to make less than 10k when I can just hire an agent, which is what I am contemplating for this summer.
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hey speedfreak. I had the same problem with potential buyers from craigslist. I no longer say I will drive them but if they are willing to drive then I sometimes go along and give them a tour. I've tried giving detailed maps and instructions but that just doesnt work for some people. I also am contemplating getting an agent but they dont return calls that quickly or seem interested when they find out the selling price is less than 15k. What is a normal commission for land (they keep telling me its higher than for a house)
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Guys:
I have had the same experience. The only saving grace is that I try to buy the majority of my property local so I don't have to drive forever.
The problem generally with low valued properties is that real estate agents don't do anything with them because the commission is so low. I have heard and seen realtor commissions of 8-10% for hard to reach properties.
That's also probably why Frank doesn't like to buy those big properties in Moonbeam. ;D