By Living Room Realty, April 5, 2018
I’ve been in communication with my client, Peggy, for several years about selling their rental on North Lombard. The first time I ran numbers on it in 2013 we were talking about listing in the $190k range and the rental value was surly higher than the land/development value. They ended up not listing at that time for a variety of reasons. A few years later, New Season build a new store directly across from the property. When construction began, the whole area got a little bump in value and when it was completed they got an even bigger bump.
In early 2018 is was time to consider selling again. By now the rental value vs. land/development value was at a tipping point mostly because of all the development and revitalization that has gone on in that area. To get it ready to sell as a rental property, there was a bunch of clean up and prep work that needed to happen. While that was being done we hatched a plan to go fishing for an investment-type buyer. The property was listed just in the ‘lots & land’ category at price that was a good bit higher than it would be as single-family-residential. The higher price was also in-line with the pricing of some other lots & development projects from the area. The property ended up getting two offers. The price that they ultimately landed on ($350k) was not quite full price, but it was a good bit more than they would have gotten as single-family-residential and it was WAY more than a few years back. As a bonus, the sale closed in 10 days and there was no further requirement for the sellers to do any prep work.
