How to Buy Your Next Primary Residence (LA 946)
Transcript:
Steven: Steve and Jill here.
Jill: Guten Tag!
Steven: What? Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.
Jill: And I'm Jill DeWitt, broadcasting from not Germany but from Sunny Southern California. Wouldn't that be funny?
Steven: We should do this where we go, everywhere we go.
Jill: Yeah.
Steven: Today, Jill and I talk about how to buy your next primary residence using data.
Jill: Yeah.
Steven: We've done it. I'm doing it right now.
Jill: Exactly! We do do this on the road but we haven't been in Germany in a while.
Steven: We should celebrate a little more.
Jill: Exactly!
Steven: Before we get into it, let's a take a question posted by one of our members on the landinvestors.com online community. It's free.
Jill: Okay. This made me laugh. JeffU asked ... I've got to say, it's so funny. Do you remember there was a guy, I wonder if it's the same guy, there was a guy years ago that was at our group and his name was Jeff and it was back when we first started our member calls every week and we would always title the calls. There was always some funny thing that happened during the call.
Steven: Like these shows. Like this episode.
Jill: Yeah, we'd all crack up about something so at the end of the call, we started to all, we said, “All right, what would you call the show?” And we come up with this funny things and I swear there was this guy that was ... I want to say it was Jeff U. We're like, “Yeah. You know what? Well, Jeff U?” Do you remember that?
Steven: I do.
Jill: So anyway, if it's you Jeff, I think it's funny and nice to see you. So, “Sorry for the newbie question. I have heard about Steve and Jill talk about percentages off of retail value. My question is what is retail value?” Is ... this is a great questions guy.
Steven: That's what I think.
Jill: And now I know you're new so it's not the same Jeff but welcome anyway. “Is it the top price that you could potential sell it for it? Number two, what others are selling it on Land Watch or other sites? Or Number there, is it what you would be selling it for discounted from Land Watch and other sites? Also, I'm just curious, what is the percentage of that ...” wait, “what is the percentage that you discount a property? I understand it's going to be different from county to county but on average what you end up selling it for and what is the discounted price from the full value? Let's say you sell it for top dollar and what is a discount percentage from other sites such as Land Watch for similar properties? Thank you for taking the time to answer this newbie question. JeffU.”
Steven: So we answer every single one of those questions and address those topics in a tremendous amount of detail in our of education programs but I choose this question very specifically because it's a big issue. Like pricing itself is what he's really asking is, “Yeah, you guys talk about retail value. You talk about wholesale value. You obviously say you have to buy it cheaper. What are the percentages?”
Steven: Retail value is the price that it's listed for in general. It used to be not so long ago but used to be the price you listed it for and the price you sell it for is very different. Not so much anymore. Basically, the listing price plus or minus 5% with land or houses or anything is about the same. And that's your retail value and you can very easily with land associate a price per acre or in the case of infill lots,