The way my wife describes my driving.
I’m working on a deal involving some lake acreage in Fannin County. I have part of it under contract for a few of my clients.
We’re under contract at a price we believe is solid relative to the market. Otherwise, they wouldn’t be buying it as investors. Even so, I’m always researching the area. I watch new listings and recent sales to make sure the numbers still make sense and that we’re doing the right thing.
So far, so good.
Yesterday a new listing popped up on a tract that’s fairly similar. Small parts of it are definitely better because it’s actual waterfront instead of just near the lake. A large portion of it, though, is very comparable to what we have under contract.
The asking price on that tract is roughly twenty times what we’re paying.
I like to think I’m a good negotiator, but I’m not going to claim I’m getting my guys in at 5% of market value. Our price is good, but this example is really about something else.
It shows what a lot of listing agents will do just to get a listing. They’ll take it at almost any price the owner wants, no matter how unrealistic, and worry about walking them back later.
I don’t operate that way. I don’t have the time, and besides it doesn’t make sense to spend money on signs, marketing, drone shots, professionally done brochures etc. for something that has no hope of performing as advertised.
And if it does sell, it usually happens at a steep discount from what the owner was originally told, which leads to frustration and bad feelings.
Of course this doesn’t mean I’m not aggressive, or I only list properties that are at no-brainer prices. Higher prices are good for me of course, partially because of commissions but more because the more I sell your property for the more likely it is your neighbors might want to sell too.
So I push it as much as I can, within reason. But you’re going to hear what I think the market is going to bear before we do it, so you’re not surprised or upset.
If you want an honest analysis of what a property might be worth, not a computer-generated estimate, you can reach out. Anything non-residential. I’ll do it for free and update it as needed within reason.
PS – If this was useful, feel free to forward it to someone who might need it.