Tagged: Nagging questions
Kevin FarrellModeratorDecember 13, 2018 at 6:40 pmPost count: 827
Nobody talks about this too much but I know it happens to me frequently. I call it “Mailer’s Remorse”. It’s that feeling you get in the pit of your stomach right after you hit the button to order 2500 letters printed and mailed. The questions begin to flow like a broken water main on a dirt road. And the questions I come up with are things that I never considered before ordering the mail. How did I get so smart after I ordered the mail? I don’t know all the answers but I can make some suggestions.
Get all of your data ready to mail in the format that you will need. No matter what time of day it is, save the files and sleep on it. Those nagging questions will come to you just as you are falling asleep. You can take another look at your data the next day and make sure that all the columns are filled in correctly and that you are satisfied with the pricing, etc. After you have reviewed it all one more time you can go ahead and order your letters.
Once you place the order you will think of something else that you didn’t check but should have. You can’t completely avoid Mailer’s Remorse. Try not to worry, it will all work out anyway.MilanParticipantDecember 13, 2018 at 7:06 pmPost count: 475
Well said Kevin. I use 10 min. thinking than Fire, fire, fire and see what comes backbstrategy without thinking anymore. Too much thinking will slow you down In my opinion big time In this buddiness.Darald Berger (@AggieLand)ParticipantDecember 14, 2018 at 1:47 pmPost count: 162
Great advice for a seasoned professional, thanks Kevin @rotortech
If only I had done this on my first mailer… LOL I would have avoided sending out offers ranging from 3-18% instead of the 23% that I had planned on sending. Good thing it was a smaller “test” mailer. But, @milan is also right, overthinking things can kill you in this business. Just find a good balance and roll with it.MikeParticipantDecember 15, 2018 at 8:22 amPost count: 44
The beauty of it though is that even if you make a mistake, sometimes all it takes is one good deal and you can try again.
A few months back I sent out a 1700 mailer to big acreage stuff. Priced too low. Didn’t get a single acceptance thru my deadline. Then about a month later, somebody contacted me and took my offer. Bought for 7800, title company fees pushed that to 8600. Listed for 23,500 and sold for 22,500 within a week of the listing. Figure about 10k in with data, mailing, purchase and closing costs and made 12k.
So now I turned around and bumped my offers up to a much higher percentage and am sending the list another mailer. If I can get one at 8k and make 12k, maybe I can get 2 or 3 at 10k and make 10k?
If not, I’ll bump them up again. I think I could have sold this one for 25k if I wanted to based on the calls i got. It seems like the higher priced stuff gets way more activity if its priced at the low end than the cheap stuff does when its priced at the low end of the market.Kevin FarrellModeratorDecember 15, 2018 at 9:17 amPost count: 827
Mike – that has happened to me and you are spot on – one good deal will pay for the whole effort. Try not to lose sleep over your mailers everyone.Jake RobinsonParticipantJanuary 11, 2019 at 11:06 pmPost count: 68
I just sent my first mailer… I did have help from Umar in making sure the letter/merge/data was right. The nagging question I have is how the hell am I supposed to know what to offer?
I intially pulled 4 to 6 acres from a county that has less than 10 people per square mile in an area with an awesome attibute – the record count though was only about 3oo records that RQ came back with… However, because the Deal Fund opportunity is available, I decided to pull EVERY record over 4 acres and up. Still there were only 1174 properties in the entire county!
So, I broke them into 3 categories
6.01 to 20 acres
20.01 & up
I went into Landwatch and a few other rural property listing sites and gathered EVERY “for sale” listing – I captured the acreage and price and put it in a spread sheet.
I took the lowest “for sale” price for 4 -6 acres and went with 25% of the sale price. Then I divided the 25% sale price by acreage to get a benchmark “Price per Acre” to price all 4 -6 acre properties. So the lowest sale price was $12,900 for 4.73 acres which = $2727.27 per acre. I took 25% of that and came to $681.81 per acre as my offer price.
What bugs me tho is the prices go up from there. Pricing everything at that price might work for the properties on the lower end, there were way more properties that were selling for $10k to $12k per acre… this means a property asking $12k was getting, what, a 5% offer?
I’m gonna hold out – I have confidence the system works… but can I do better on the next one?
I can’t know where all the records fall as they are not listed for sale, but how do you accomodate for esculating prices
I just started receiving phone calls today… the first two were Old Ladies haightin’ on me… the second one said, (among things like, this is a joke, insulting, taking advantage of people) to “I happen to know the DA in our county, maybe I’ll turn you in for fraud”
That’s the main question I have… the second “traunch” of properties from 6 to 20 the offer went up to $747 per acre (again starting with lowest selling price of that group x .25 x acreage) and then the over 20 acres the price came in at a measly $312/acre which is consistent as larger parcels tend to be less expensive per acre than say “buildable lots”
had 8 calls, 4 were friendly but absolute no… got three of them added to my “buyer’s list” all said “if I could buy property at those prices i’d be buying all day” so, I switched and asked, “if I had properties available well below market prices would you want to know about them?” 3 yessesKevin FarrellModeratorJanuary 12, 2019 at 7:57 amPost count: 827
Jake – Sounds like you are doing everything right to me. You have taken on a tough problem. Pricing across a large range of property sizes is difficult. You have described the problem very well. Don’t worry. The calls are coming in and you will get some accepted offers. Much better to be a bit low on some than too high on others. This pricing job works much easier if your county had 2600 4 to 6 acre parcels. In that case you would know that your price was at 25% of comps.
Good job turning the conversation around to add callers to your buyers list. I do that everytime someone says “if you can buy land that cheap, I will buy it from you.”
Please update us on your progress. It sounds like you are in the very first week of getting calls. Weeks 2 and 3 will be much more interesting.
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