Marketing Land 101 (JJ 691)
Transcript:
Jack Butala: Jack and Jill here.
Jill DeWit: Hi.
Jack Butala: Welcome to the Jack Jill show, entertaining real estate investment talk. I'm Steven Jack Butala.
Jill DeWit: I'm Jill DeWit, broadcasting from sunny Southern California.
Jack Butala: Today, Jill and I talk about marketing land 101, which seems really fitting, Jill, because I know you just got off the phone and sold a 40 acre property.
Jill DeWit: Every time I do that, you know, I learn more about it. You know what I mean?
Jack Butala: It's amazing how much you learn just from one phone call from a land buyer, even, we've been doing this since the '90s.
Jill DeWit: Exactly.
Jack Butala: Every single time I talk to, even a Land Academy member about their experiences. I mean, that's kind of the whole point of the show here, is to share our experiences so you can skip 20 years.
Jill DeWit: Exactly, that's for sure.
Jack Butala: Real quick, what happened with, I know this ...
Jill DeWit: I'll tell you on the show.
Jack Butala: Oh, all right. Before we get into it, let's take a question posted by one of our members on the jackjill.com online community. It's free.
Jill DeWit: Thank you. It's on landinvestors.com, by the way, that's where you go to find this. Okay, Neal asks, "This was my first country mailer, and I think it perfectly reflects why eventually it's better to target subdivisions separately with more specific pricing." "Ding ding," to quote you Jack, Steven.
Jack Butala: Well, you know, go ahead, we'll finish the question. I have lots to say about pricing and targeting.
Jill DeWit: Okay, "I'm getting a good response, but one signed and returned offer in the subdivision of my choice, New Mexico, makes me think that this offer was way too high, despite it being less than the 20% of the assessed value per the county and less than 25% of the going market value general to the county on Land Watch and Land Pin"
Jack Butala: I'm going to stop you right there for one second.
Jill DeWit: Okay.
Jack Butala: We never advocate using the assessed value for pricing.
Jill DeWit: It's true.
Jack Butala: Never. Assessed value is very different county to county and extremely different state to state. If you've ever looked at your property taxes on your house, you know that.
Jill DeWit: They're often behind. I think they're always behind.
Jack Butala: Here's the good news, you know, you got the first one out of your way.
Jill DeWit: The first mistake?
Jack Butala: Yeah. [inaudible 00:02:16] more people. Go ahead.
Jill DeWit: Yeah, yeah. All right, "My offer worked out to be $262 per acre for a five acre parcel," so it was $1,311.
Jack Butala: Not bad.
Jill DeWit: "I am now trying to do my due diligence in the area and work more specific to the subdivision, but I'm also not finding any sold comps. I'm looking in Zillow, Trulia, Redfin Realtor, so it's hard to feel good about my offer price for this particular parcel, especially when it's not exactly enriched with Jack's four As." He puts in here, here's the things. "It's barren, flat with not even a bush, it looks like the parcel's locked in there, no physical barriers to the road, I don't know,