Stay on top of things, even when it seems pointless.
It’s hard to believe it’s been almost 20 years, but the 2008 financial crisis was really tough on the real estate business. Lending standards changed (rightly), values were down, and people were scared.
As we started to climb out of it, there were plenty of available lots in outlying areas (which are booming suburbs today).
The problem was that even at much lower lot prices than we see today, a deal wouldn’t work. Even if the lots were free, the house wouldn’t appraise high enough to make the necessary financing work.
Along about 2011, a builder asked me to canvas the market in a town for them. There were about eight subdivisions with substantial available lots. Not a single house being built in any of them.
The lot prices weren’t objectively terrible. The deals just wouldn’t work in the financing environment.
So we moved on. Found some things in another town that fit their business model and, more importantly, would work for the buyers and lenders.
But a few months later, I drove through those same subdivisions and there were building programs in every one of them. The market changed slightly in a couple of ways, and what was a non-starter just weeks before was a no-brainer.
If you own land, it only makes sense to stay on top of the local market.
Even if you’re not looking to sell, if someone shows up with a check for 30% above what you think it’s worth, you’d probably consider it.
But what if they know something you don’t?
About a new development. Utility capacity that’s coming. Something else happening nearby.
And what you think is someone overpaying is really you selling too low?
The MBR Land Reality Check helps with that.
Current sales, what’s happening around the property, and other factors that could affect what a reasonable buyer might pay today.
Useful information whether you’re in the market to sell today or not.
No pressure to list, and no charge.
Does it make sense to know where you stand?
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