Forums **Ask A Question** What is retail value?

  • Creator
  • #20628

    Jeff Unruh
    Post count: 37

    Sorry for the Newbie question. I have heard steve and jill talk about percentages off of “retail value”. My question is what is retail value?

    1). Is it the top price that you could potentially sale it for?
    2). What others are selling it on LW or other sites?
    3). Is it what you would be selling it for (discounted from LW and other sites)?

    Also, I am just curious what is the percentage that you discount a property? I understand that it is going to be different from county to county, but on an average what you end up selling it for and what is the discount percentage from the full value (let’s say you sale it for top dollar) and what is discount percentage from other sites such as LW for similar properties.

    Thank you for taking your time to answer this newbie question.

    Jeff Unruh

Viewing 4 replies - 1 through 4 (of 4 total)
  • Author
  • Joe Martin
    Post count: 54

    Hi Jeff,
    You asked some good questions, so here is my opinion with an example showing 4 similar sized properties for sale in a specific area:

    For sale:
    Property 1: $20,000 (20 acres)
    Property 2: $24,000 (22 acres)
    Property 3: $20,000 (18 acres)
    Property 4: $76,000 (21 acres) -this property gets omitted from the data set because it is an anomaly and will throw off my analysis.

    Sum of 3 Properties: $64,000 for 60 acres
    Avg asking retail is $1,067 per acre

    List Price: I typically start at 75% of retail and drop the price every two weeks until sells. In addition, I’m going to avoid asking over critical “psychological” price points to entice a purchase. Meaning, I’m not going to ask $10,500, I’ll ask $9,900. $19,900 instead of $21500 etc etc.

    Everyone does this differently, so this is just my $0.02. Hope this helps.

    Joe Martin

    Jeff Unruh
    Post count: 37


    Thanks for the information and it was helpful. So when you say “retail” is that comparisons off of LW or MLS. I would assume LW versus MLS, the price would be much lower.

    Thank you for your help.

    Jeff Unruh
    Post count: 37

    Can someone answer what do you consider “Retail Value”?

    Is it what you would get on if you sold it top dollar on the MLS?
    Is it what the average LW or LP prices are?
    Is it any discounted price from LW or LP?

    My best guess is they are talking about is the average prices that currently listed (not sold) that are on sites like land watch or land pin.

    Thank you for your help.

    Kevin Farrell
    Post count: 1302

    Jeff – When you look at land advertised for a county sort by price from low to high. The lowest ones are usually wholesalers like us. You can tell by the look and content on the ads and if aren’t sure click on their website link. The realtors usually have a page on their Brokerage firm website like Coldwell Banker or Century 21, etc. You should notice a price break between the wholesalers and the lowest realtor listed properties. That is the beginning of retail prices for that area. When I say comps are $25,000, I mean that the lowest retail price for similar property in that county is $25K. I don’t really care about all the prices that are higher than that, because I only need to beat that lowest price to get the attention of buyers in that market.

    Just like the old joke – I don’t have to be faster than the bear, I just need to be faster than my friend.


Viewing 4 replies - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.