• Creator
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  • #25045
    Case Dyke
    Participant
    Post count: 7

    Hi everyone,

    I’ve used Jack and Jill’s method to successfully buy and sell smaller tracts (between 2-16 acres) but am wanting to buy a larger tract (between 100-200 acres) for my personal use and was wondering if the standard offer of between 20-35% of comps is reasonable for these larger purchases. Just thinking about it from a numbers prospective if I were to offer 35% of the comps for a property with a retail value at $400,000 ($2,000/acre x 200 acres = $400,000) I would be offering $140,000 ($400,000 x 35% = $140,000). This seems like a very steep discount and I’m not sure I would have much success in finding one.

    Any help as to what percentage of comps you use when making offers on larger properties – or any other tips for these larger properties – would be greatly appreciated!

    Thanks!

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  • Kevin Farrell
    Moderator
    Post count: 1681
    ProAdvanced

    Case – 25% offers will still work. In my experience you will need to make at least 5,000 offers per closed deal. You may find better success with a 40% offer or more. Once again, this all depends on where you are making the offers, etc. People with properties in this value range usually know exactly what the full market value is. As always, you are looking for the right situation for the seller to accept your offer.

    Kevin Farrell - Moderator
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    Luke Smith
    Moderator
    Post count: 1318
    ProAdvanced

    Try 25% then give it 6 months and try 45% or whatever you think you would be happy to pay. You will already have the data set all scrubbed out and ready to just reprice it. Cheaper than paying more for your place. Might get one at .25 more likely to get a counter offer that works too.

    Or send three of them out about the same time. Make three different prices. Three different names. I see people doing that to me wonder if it works?

    Case Dyke
    Participant
    Post count: 7
    Pro

    Thanks, Kevin and Luke for the advise! I think I’ll try pricing them at 25% and move up from there if need be. Thanks again! I really do appreciate it!

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