Moving off Analysis Getting to Offers (CFFL 422)
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hello there.
Jack Butala: Welcome to our show today. This episode Jill and I talk about how to move off analysis and getting toward making offers. Get out of your own head and get some offers out there. Right Jill?
Jill DeWit: Exactly.
Jack Butala: Before we get into it, let's take a question posted by one of our members on LandAcademy.com online community. It's free.
Jill DeWit: Cool. All right. Chip asks, "Hi all. In my data scrub criteria, I'm filtering for 0% improvement value, but I'm still getting records that have homes. Is this because I also have SFR, single family residence as one of my filter criteria? Jack does this in the program but it should pull all SFR zoned properties that have yet to be improved. Seems to be happening multiple counties. Is anyone else experiencing this? Thanks in advance, Chip. All right, Jack. [inaudible 00:00:57] you.
Jack Butala: This is a PhD level question and Chip, thanks for asking. All data's different. That's the answer. What he's really talking about is, when you take an assessors database through RealQuest Pro, everything's lined up in nice columns for you. They're nice enough to extrapolate the assessor data and look at assessed value in three columns. Number one column, the land value. Land is assessed at a certain value. Number two, the improvement value. The stuff that's been done to the properties like build a house. Put some roads in. That's assessed at a certain value. A third column is a total of those two. You would think that if the assessed value for improvements is zero, there are none. A vast majority of the time, that's the case.
However, it's a real world. In the data world it'd be beautiful if everything was just perfect and it lined up but it just doesn't happen that way. In a real world, stuff happens. People don't pull permits. They build stuff. They do all kinds of stuff to their property without telling the county and the county never knows. The assessor doesn't physically look at every single property in the county. It's not possible. You have to test this for reason. There's lots of different ways to do that. It's so far beyond the scope of this show.
Jill DeWit: I came up with two things and I'm right there with you.
Jack Butala: But you'll never get it to zero, let me tell you that. You'll never get data so that it's perfect but man, you will come close. Jill, what are your two?
Jill DeWit: Well I was going to say too, you had number one, yeah, like you just touched on. Some structures are not always properly conveyed to the county. Who's going to want to do that? Hey, by the way, my house is worth X. You need to assess it this way. No, no, no. We're not going to do that, everyone, because then your taxes go up. Right? Then the other thing is, people make mistakes too sometimes, you know?
Jack Butala: Oh, Jill, right.
Jill DeWit: The county individuals are real people, so have I seen mistakes done by county individuals? Heck yes! Every once in a while, that comes up too.
Jack Butala: That's a good point. I read a stat a few years ago when this whole mortgage crisis was happening in this country and there's something like 25 or 30% of all the mortgages that are done and completed and people are paying now, they have errors.
Jill DeWit: Yeah.
Jack Butala: Mass errors like the payment that you're making is incorrect, so yeah, people make mistakes.
Jill DeWit: That percent's high. I didn't know that. That's interesting.