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How do you play these? Buy or no? 2017-09-12T09:59:18+00:00
Viewing 13 posts - 1 through 13 (of 13 total)
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  • Shammgod
    Participant
    Post count: 99
    #11832 |

    Offered $4k in a county on some lots and got a number of contracts. When I zoom in on the map on zillow it seems the cheapest pricing is around $15k. On landwatch, around $12k. However, a realtor sent me some comps and there’s a bunch of $3-$6k lots in those same areas that don’t show up on landwatch or zillow.

    I know most here don’t check comps with realtors, so curious how you’re playing ones like these? Checked craigslist for the county and there’s a decent number of land sellers there so maybe landwatch/zillow aren’t the best comps relative to realtor/craigslist?

    Pick up 1-2 and see how they go, or scrap?

    Thoughts?

    Profile photo of MilanMilan
    Participant
    Post count: 293

    I would do few Shammgod. Especially if you have funds to play little around. All depends on your audition capital. Maybe change your price showing the selle a realtor comp. to $3K

    Merritt Whitman
    Participant
    Post count: 57

    Hi, Shammgod–I think this is a great question. When you say “comps” what do you mean by this? Are those actively listed properties currently only seen on the MLS? Or are those previously sold and if so, when?

    I would think that if those are active listings that aren’t on Landwatch, LandsofAmerica, LandandFarm, Landpin, Zillow, etc. they’re being poorly marketed to begin with so how much weight can you really give them? Additionally, if you yourself were looking to buy a lot for thousands of dollars would you start out with Craigslist or one of the aforementioned established, professional sites? Personally I would feel more comfortable with the latter as it definitely feels more solid and professional (just speaking of my own psychology here). I also would imagine that there’s not necessarily a crossover of buyer’s pools between MLS RE agent buyers (exposure to the agents listings only?) and website buyers (bigger wholesale market), but maybe I’m wrong. It’ll be interesting to see if some of the experienced members weigh in here.

    It’s impressive the amount of work you’re doing just starting off. I’d love to see a post about your time management and organization processes.

    Kevin Farrell
    Participant
    Post count: 385

    Shammgod – I tend to trust the data from Zillow and LW and the others because that is where I am selling. If I had the MLS information that you mentioned at much lower $$ I would make a few calls. I want to know why they are different. And, if they are that low, why are they still on the market? I smell a rat. Jack was recently talking about bogus listings on LW that don’t have any contact info except a phone number. He says these are there to get people to call a realtor in the area. They are not real. Could this be the case with these low ball listings? Or are they real and why are they priced that way?

    Without the MLS data I would say buy it now. With that data it makes me ask questions. I think you will get to the bottom of this fairly quickly.

    Shammgod
    Participant
    Post count: 99

    When you say “comps” what do you mean by this? Are those actively listed properties currently only seen on the MLS? Or are those previously sold and if so, when?

    sold MLS comps from a realtor

    It’s impressive the amount of work you’re doing just starting off. I’d love to see a post about your time management and organization processes.

    still unsure if i’m wasting a lot of time, or saving myself from some bad deals. i’m spending a LOT of time on due diligence for deals- definitely need to improve my efficiency.

    Shammgod
    Participant
    Post count: 99

    Without the MLS data I would say buy it now. With that data it makes me ask questions. I think you will get to the bottom of this fairly quickly.

    Ya the funny thing is a number of deals I’m passing on are definitely “deals” according to landwatch/zillow, but once I chat with a few realtors they often show me stuff that sells ways lower in the same neighborhood. Since I know many others here aren’t calling realtors on deals for due diligence I’m curious whether they’re still moving the stuff that’s tight once they see MLS sold comp history, or if they’re doing okay just by being lowest on landwatch.

    Shammgod
    Participant
    Post count: 99

    I would do few Shammgod

    ya think I’ll grab 1 or 2 of these and see what happens

    Luke Smith
    Participant
    Post count: 966

    This is a great topic to me because I’m wrestling with the same problem on a current mailer. Sounds like we mailed the same place or same #’s anyway.

    I figured if I mailed them all the cheap ones fall in my lap and are not on the market anymore. Fixes that problem. Then I see how many I get and it’s still not the 1% buy rate I was used to in the desert. Sellers are asking for more and often way more so I know they are not dumping their land on the market. I’ll get more data about the land and make videos and more advertising than anyone else if I have to pull it off.

    Do still wonder if 2k would of bought me the same land 4k is buying though.

    Luke Smith
    Participant
    Post count: 966

    4k sounds a lot more serious and gets people wheeling and dealing that is for sure. Never did as many option deals on old lower $ mailers as on this current mailer.

    Shammgod
    Participant
    Post count: 99

    Do still wonder if 2k would of bought me the same land 4k is buying though.

    Ya I went back and asked them to do $2.5k and they all turned me down. Tough sell when they’re holding a $4k contract I mailed them.

    Luke Smith
    Participant
    Post count: 966

    Ever try mailing them low then a higher offer later after you mop up the cheap easy stuff? That has been working for me in select favorite areas. Just repeat mail it.

    Shammgod
    Participant
    Post count: 99

    Ever try mailing them low then a higher offer later after you mop up the cheap easy stuff? That has been working for me in select favorite areas. Just repeat mail it.

    haven’t yet only 2 mailers in, but planning to do some 2-3 mailer sequences to some areas like that. i like that strategy.

    Peter Toth
    Participant
    Post count: 20

    Great topic… I have discussed doing a second or third round of mailings before. It would be good to know how much time to get it however. Assuming two weeks in the mail and then People’s procrastination for a week or two for responses it would have to be 30 or 40 days minimum.

    Anyone have any thoughts on the timing?

    Peter

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