Selling Raw Land Into Real Estate – Nicole Giguere
On this episode of The Closing Table, we sat down with Nicole Giguere!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Nicole Giguere…
The conversation began with a word association icebreaker on property tax, underwriting, and more. Nicole then reveals a glimpse of her life beyond real estate. She expresses her passion for traveling, which motivated her to enter the industry as a means to afford more international adventures. Alongside her love for exploring different countries, she has a keen interest in cooking and enjoys preparing delicious cuisines at home. Nicole also values quality time spent with her boyfriend and cherishes the fun moments shared with friends.
Nicole’s market primarily encompasses the Greater Lansing area, located in Mid-Michigan and serving as the state capital. She specializes in assisting individuals looking to buy or sell homes within a three-mile radius. However, she occasionally extends her services to cater to specific buyers and sellers outside the immediate area. In this market, the average sales price stands at $240,000, with properties typically spending an average of six days on the market. The current price per square foot is approximately $131. The market’s supply of available properties is limited, with a month’s supply estimated at 0.9 months, indicating a strong need for more inventory to meet the demand for active listings.
Kevin then asked Nicole to describe a time when she helped a client position themselves to get pre-approved for the mortgage process. Nicole explains that while she primarily focuses on clients buying new construction or those transitioning from an existing home to new construction, she has encountered numerous instances where she assisted clients with suboptimal credit scores. These individuals had big dreams and aspirations for their ideal homes but faced challenges in meeting the debt-to-income ratio required for pre-approval. Nicole recounts a specific case where a gentleman had been dreaming of building a custom home for ten years. Four years prior, they explored existing inventory, but none of the available options matched his vision. Nicole connected him with a reliable lender who worked closely with him to improve his credit over the past year. Eventually, they achieved pre-approval and successfully closed on his dream home.
Next, Nicole shared a story of the most untraditional way she obtained a client or a lead for a client. While she employs traditional marketing strategies, she recalls a unique experience where she reconnected with a college friend after losing touch due to various circumstances. During their conversation, Nicole discovered that her friend was planning to move to Detroit. Seizing the opportunity, she offered her real estate services despite it being outside her usual service area. Two weeks ago, they entered into a contract, selling the property for $15,000 over the asking price. Nicole found immense joy in reconnecting with her friend and now having the opportunity to assist them in their real estate journey.
Nicole then reflects on a challenging experience from the previous year involving a property in Okemos. Unfortunately, the timing was not in their favor as they hit the peak of the seller’s market. Despite the beautiful subdivision and excellent location, the house required some repairs, which limited its appeal. Like many sellers, the client insisted on pricing the property above market value, ignoring the comparable sales data provided by Nicole. Consequently, the listing languished on the market, selling below market value due to its extended time sitting unsold. Nicole highlights the crucial factors in selling a home: pricing, location, and condition, emphasizing the importance of pricing the property correctly and considering market conditions to ensure a successful sale.
Specializing in vacant lands, Nicole recounts an experience with two houses in Charlotte that were developed on vacant land and are still standing today. Initially, the land consisted of four individual parcels, and Nicole saw the potential to transform them into waterfront properties. In Charlotte, there was a picturesque pond/lake, and the property lines were only a few feet away from the water. Determined to make them waterfront properties, Nicole worked with the townships, arranging for the land to be re-surveyed. As a result, they successfully achieved waterfront status. Two of the clients were eager to start building immediately, as they could now have docks and enjoy the water. Nicole was involved in every aspect of the process, from positioning the house on the vacant lot to the layout and interior design. Being a part of this journey was incredibly empowering for her.
When asked if there had been a time when the closing day had to be pushed back because of her or her clients, Nicole recalls a unique situation she encountered while representing a seller who was an architect, builder, and developer. The property in question was a nature preserve in Okemos, and the seller had to plot every single lot in advance. This process alone took a month and a half to complete. Nicole had the responsibility of finding buyers for all 14 lots within the nature preserve. While it was challenging, she successfully accomplished the task and considers it one of the most rewarding experiences in her career. Fortunately, she had patient buyers, which made managing the situation a bit easier. This experience taught her the importance of thorough planning and patience when dealing with complex projects.
Kevin also asks if she ever had to deal with a difficult or demanding client and how she handled it. Nicole acknowledges that approximately 50% of her clients can be demanding, but she views it as a positive aspect. She believes that patience and understanding are key qualities for an agent. It is crucial to grasp what the client wants while also being realistic and transparent. If a request is unfeasible, Nicole believes in providing honest feedback from the start. She emphasizes the importance of understanding her clients’ expectations and visions, being their advocate throughout the journey. When faced with challenging situations, Nicole maintains professionalism, never raising her voice, and always striving to be understanding. She believes in acknowledging her clients’ emotions and addressing their concerns to ensure a positive outcome.
Being in the East Lansing market, the two talked about educating college students about owning property in the area and the benefits and drawbacks of being in a college town. Nicole acknowledges that in the past, many individuals have approached her about purchasing properties for rental purposes in East Lansing. However, this presents a significant challenge due to limited availability and numerous restrictions and regulations imposed by neighborhoods and jurisdictions. Not all properties are suitable for this purpose, making it difficult to find viable options for potential investors.
Nicole then shared a story about a particularly rewarding interaction she developed with a client throughout their real estate journey. She recalls a memorable experience with a couple she randomly connected with over the phone. After visiting their home, discussing their goals, and devising a strategy, they successfully sold their house within three days. Simultaneously, Nicole helped them find vacant land where they built their dream home. She had the privilege of being involved in all three transactions and has formed a close bond with the couple, becoming like a member of their family.
The conversation wraps up with Kevin asking Nicole what approach would she take to own a new construction considering today’s resources and knowledge, and what are the advantages and disadvantages of a new construction in her market in 2023. Nicole highlights the significance of being one of the first homeowners in a new subdivision. The key to maximizing the investment is to capitalize on the potential appreciation over time. While some people may hesitate to be the first buyers, the prices tend to increase as the subdivision fills up, reflecting the rising costs of labor and materials. Therefore, Nicole recommends taking the plunge as an early investor in order to benefit from the price gap between the first and subsequent buyers. However, one drawback to consider is that if you build in a subdivision where all the existing houses are 20 years old, your new construction may be the highest-priced home in the area, which could impact its market competitiveness.
Check out Nicole Giguere:
Facebook: https://www.facebook.com/nikki.giguere
Facebook Business Page: https://www.facebook.com/giguere.build.buy.sell
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