How Do We Price Our Offers?
If you are reading this, you have likely received an offer in the mail asking if you would be interested in selling us a vacant plot of land you own.
We imagine you have a couple of questions for us, probably starting with, “how on earth did these guys come up with their price?”
Our Pricing Model
We developed a proprietary algorithm that looks at public data to determine our offer prices. This data includes the assessed value, market value (county), recent comps, historical comps, access, buildability, macro and micro economic trends, annual property taxes and local real estate market conditions.
If the offer seems low to you, please note we will pay for all closing fees, along with any backtaxes or arrears, and the cost of a mobile notary for closing. We can also close within a week of receiving a signed purchase agreement.
But in order to provide these services, our price must be set slightly below market.
We have sent thousands of mailings and are constantly updating our algorithm to better price our offers. Based on historical data, we believe our algorithm is correct about 70% of the time.
If you believe the initial offer price is off, please go to our home page, click on “Get a Cash Offer” and fill out the detailed form. We will then take a look at the lot ourselves to see whether we are able to override the algorithm and reassess the offer.
How We Add Value?
We are providing much needed liquidity to a market that is under-capitalized. Most banks will not provide mortgages for smaller parcels of rural vacant land, which leaves only cash buyers. This can make it very difficult for owners of vacant land to find a buyer when they need to sell. By providing liquidity to the market, we give landowners a way out of unwanted land.
For the Seller
Perhaps you are paying annual taxes year after year on your land while seeing no increase in value or use. Perhaps you have inherited your lot and don’t know what to do with it. Perhaps you just want quick cash for a vacation or an expensive purchase.
We offer a fast and easy way out of vacant land that you cannot put to good use.
When you sell directly to us, you cut out a broker’s commission and closing fees (on average around 6% of the sales price). We will also send you an offer within a few days versus waiting months for a broker to find a buyer for you. We help you make a quick profit on land without all the headache of the traditional real estate process.
For the Buyer
Because we purchase land at a discount to market and we restrict our overhead, we are able to pass on savings to our buyers. We keep the price low enough to be affordable without a mortgage, making it easy to purchase a new vacation spot or campground.
In certain instances, we also take over the role of the bank ourselves and offer seller financing for those who want to spread out their payments over a few years. This helps make our lots even more affordable for our purchasers.
If you are intrigued or would like to know more, give us a call to discuss your lot. We will work with you to move ahead with a fast and easy closing.
If you are not interested in selling your land, but are interested in buying land at a discount, check out our listings page.
If you’re just interested in learning more about vacant land, check out our blog, where we detail our learnings.
We look forward to doing business with you!