Are You Saving That Vacant Lot In Carolina For A Rainy Day?

     What if today were your rainy day?  If you own a vacant lot in Carolina that you don't need, maybe you should sell it.  I often solicit listings of vacant lots that belong to someone that lives a thousand miles away. Often these owners tell me that they would like to sell these vacant lots if they could get a price that is far more than the vacant lot is worth. For instance, I talked with a vacant lot owner last week.  His lot was worth maybe one hundred and thirty thousand dollars.  He would not list it with me because he thought it should be worth far more than that.  The lot next door to his vacant lot was for sale for one hundred forty seven thousand dollars.  It has been listed in the local M.L.S. for about a year.  I am pretty certain that that vacant lot is not worth $147,000.  If it were, it would be sold.

      As a daily practitioner of selling real estate, this is only too obvious to me.  It is a hard thought to get across to a person that bought that vacant lot a few years ago for $225,000.  People tell me things that would be humorous if the subject were not so serious.  People tell me that they are going to hold on to their vacant lot "until a rainy day"

     A rainy day in my definition is a time when you desperately neeeeeeeed some cash.  If you own a vacant lot or a vacant piece of land, and you need some cash desperately, this is not a good time to get a top dollar price for your vacant lot.  This is a time for a buyer to get a bargain price on your lot.  How do I know this?  I have been selling real estate for thirty years. I represent buyers and sellers.

     If you own a vacant lot that you probably never should have bought, sell it.  Turn it into cash.  Better yet, turn it into a mortgage.  https://www.youtube.com/watch?v=Dbg8GFXH2To  Here is a link to a video about how that works.   I am positive that I would rather own a mortgage that pays me $500 a month than a vacant lot that that costs me $2000 per year.  Positive cash flow is a good thing.

     Why do you need ten acres of vacant land in western North Carolina when you live in Florida?  The answer is you don't.  You are paying taxes and HOA dues.  You could be investing those dollars into some account and earning interest.  How do buyers and real estate appraisers determine value?  They simply look at what other buyers are willing to pay and what other sellers are willing to sell for. http://activerain.trulia.com/blogsview/4568120/why-won-t-my-listing-sell-and-why-don-t-people-buy-gas-in-tryon-north-carolina-  Here is a link to an article I wrote about why you can't sell your property for more than anyone else sells theirs for.  It is an article about where I live in Tryon, North Carolina.  No one buys gasoline in Tryon,North Carolina because gas is $40 cents per gallon cheaper two miles away in South Carolina.  Human nature determines value.  Does it change over time?  Yes.  Will prices go up over time?  Who knows?  No one knows.  The time to sell real estate is when you want to sell it.

     Let's asssume you have a crystal ball.  I have always wanted one.  Your crystal ball tells you that your $130,000 vacant lot will be worth $230,000 in five years.  Should you wait five years to sell your vacant lot?  You could sell the vacant lot now for $130,000.  Invest the $130,000 in some income producing real estate, like a duplex five miles from home.  In five years, if the vacant lot is worth $230,000, it is a pretty good bet that the duplex will also be worth $230,000.  How do we know?  The crystal ball tells us.

     On the other hand, What if the crystal ball says the vacant lot will only be worth $90,000 in five years?   It is the same story.  Sell the vacant lot for $130,000 today.  Convert the cash to income producing property, like the duplex five miles from home.  Maybe the crystal ball says the duplex will only be worth $90,000 in five years.  The duplex is generating income NOT costing taxes and HOA dues.   The problem is that none of us have a crystal ball.  I don't need a crystal ball to know that real estate that is not appreciating or generating income and is costing taxes and HOA dues is not a good investment.

     Sell your vacant lot.  Don't wait for a rainy day.  Invest that money elsewhere is good financial advice.  Like other good financial advice, it is not always easy to take.  If I can help you sell your vacant lot in western North Carolina, please call me at 828 755 6996 or check out our website at www.lakeadgerforsale.com