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!
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