The approval to build: The reason that land is developed is so that it can generate more income. Land that is used for farming brings in much less than land that has an office building or townhouses on it. When you change the zoning or take a piece of land through the approval process, it becomes more valuable simply because you now have the ability to build and create more income from the land.

Understand that as a seller you are the broker's employer. The broker also has by law, a fiduciary duty to you and is charged with trying to get you the best possible price and terms for your property.
 

Many times a seller will select a broker based upon a referral. That is fine as long as that broker is experienced in your market and is not the husband or wife of friends who just entered the real estate in Marbella. estate profession. Stay away from that! As much as you would like to help friends out, why would you screw around with your major investment in the hands of an amateur?

For example: the other party may have a wonderful property (site) and wants to develop it, but does not have the knowledge. You "love" the site and know that you could make it a very successful and profitable real estate development. You approched the land owner.

Not knowing or being comfortable with the selling price after purchasing and renovation is completed. This is also known as the "After Repaired Value" real estate company or service. ARV for short.

To better clarify this, I can influence an appraiser to appraise a $200,000 property for as much as $225,000 or as little as $175,000. That's a pretty big swing. And in a tight deal that can cut into your profit margin substantially. I tell my appraisers not to give me any fluff, or what they think is happening in the market place. As Sergeant Joe Friday from the show "Dragnet" always said, "Just the facts ma'am." So if the seller or savvy wholesaler gives you the appraisal, just keep in mind it could also be just another marketing brochure to sell the deal.

Do you know of an agent or a company in your marketplace or a neighboring marketplace that "owns" a benalus segment of the market? Perhaps, it is a specific golf community, a luxury high rise, the downtown area or the waterfront area. Their name is synonymous with that niche.

Just because a property falls under the luxury umbrella, does not necessarily mean that it is problem-free. Structural problems such as improper weight baring pillars and roofing issues, evidence of water damage and mold, or piping and HVAC problems are just some of the problems one can find in any property. That is why it is integral that one conducts a home inspection before signing on the dotted line. Most importantly, make sure your contract for purchase includes a home inspection contingency, i.e. a statement that permits you to freely walk away from the property if the inspector finds a problem with it. A competent broker also won't waste your time or their own by showing you properties that aren't satisfactory.