Even when you’re willing to pay it
In a hot housing market, paying full price—or even more—can be necessary. Some sellers use pricing strategies where they list below market value to spark a bidding war. That’s normal in residential.
When it comes to land, though? Different ballgame.
Unless you’re dealing with a rare exception, your first offer on land should never be full price.
When I bought my truck, I made an offer I thought was a lowball—and they accepted immediately. Instead of being happy, I wanted a do-over. The funny thing is, it was a mistake on their part not to ask for at least a little more. I was fully expecting a counter, and if they’d asked for a bit more, I would’ve jumped on it.
They left money on the table.
Same thing happens in land deals.
Years ago, I was brokering a tract to a developer—part of what’s now Waterstone Estates, where many of my lot clients first met me. I asked the owner what he’d take, and he gave me a number. The developer wrote a contract for that exact price.
Instead of being thrilled, the seller started second-guessing. Maybe he wanted more. Wanted a do-over—just like I did with the truck.
A little well-placed shaming and a reminder that your word matters in this business got us through it. He honored the deal, the sale closed, and we’ve done multiple deals since. But I’ve never again started with a full-price offer—on his land or anyone else’s.
Here’s why:
Especially today, in the land market, you run into the same buyers, sellers, and brokers over and over again. And a lot of sellers try to squeeze every last drop out of a deal—moving the goalposts, making things difficult, trying to chisel brokers on their fee.
That last one might be the worst strategy of all.
Want to make money in land? You need deal flow. Where do deals come from? Brokers. And after 25 years, I’ve got a long list of people I might send a deal to first.
Who goes to the top of that list?
- The guy who does what he says and pays me with a smile?
- Or the guy who made everything difficult and asked me to cut my fee in half?
Self-fulfilling prophecy.
So what’s the takeaway?
If you’re selling, be willing to take yes for an answer. If you say you’ll take $1M, take it when someone offers it (assuming the terms are reasonable). Be a person of your word.
If you’re buying, don’t offer 100% of what you’re willing to do on the first pass. Even if you’re okay paying full ask, offer a little less. Let them counter. Don’t take away their chance to feel like they “won” something.
And if you’re dealing with a goalpost-mover? We’ve developed a pretty effective strategy for that. I won’t say it here—it’s a secret—but if you’ve been around the block, you might guess what it is.
Got a lot you might want to sell?
Get a FREE, no obligation report on what it could sell for today.
Get Your Lot Valuation
Own land instead?
Get a report for that here:
Get Your Land Value
Just a glutton for punishment?
Sign up now to get more articles like this in your email.
Sign Up Now