LAND PRICES – WHO SETS THEM? – February 2005

Land Prices & Land Value!

Land Vaslue Set by Those Who Buy Land!

An auctioneer was once heard to begin a land auction by barking, “We’re here to get as much as we can – you’re here to buy it as cheap as you can – what am I bid?”

How are prices established? Who gets to decide on the final purchase price? Can buyers make a lower offer? The price of property is obviously a major concern for all parties. Here’s a summary of pricing terms and how they affect both buyers and sellers.

The Asking Price – Sellers are responsible for setting the asking price. The property belongs to them, and it is their right to price the property at a level acceptable to them. Having said that, you can well-imagine the wide variance in prices that are to be found in the market. It is also the primary reason to begin your search through a real estate broker specializing in land.

First consider “By Owner” land sellers. These individuals can ask any price they like – and usually do. Without the benefit of being represented by a broker, they lack accurate pricing information upon which to base their price decision. They’ve “heard” what others are getting for their land. They’ve dreamed of getting even more . . . and maybe added an extra 10% on top of that for “wiggle room”.

Buyers often approach individual landowners thinking they can buy at a bargain price since the sellers are not paying a commission. Nothing could be further from the truth. Our experience shows that these sellers, not having all the facts about the current market and actual sales, generally believe they can ask more rather than less.

Worse yet, if a buyer happens to show interest at their price, the sellers often back-peddle, possibly raising the price. In short, buyers who approach the “By Owner” seller are most likely to encounter indecision, inaccurate pricing, misinformation, and wasted time.

If you contact a broker specializing in land, you’ll encounter a different situation. Serious, motivated sellers engage the services of a broker because they intend to sell. One service sellers receive is access to accurate, factual, current pricing information. The broker knows what buyers have recently paid for similar properties. This information is incorporated into the seller’s pricing strategy, resulting in an asking price at or near fair market value. It has been said that “fair market value” is defined as “that price which a seller is willing accept and a buyer is willing to pay, neither party being under any pressure to act.”

So, now it’s up to you. Why not take a few minutes to let us know your thoughts and plans? Just click on Paul Christian Breden and we’ll respond promptly.

We look forward to seeing you here in the mountains!

Paul Christian
Broker!

The purpose of Land Rush is to educate and inform you in such a way that, once you arrive here in the mountains, you’ll be prepared to make your purchase. If you haven’t already, please – before you come – take time to download our buyer’s guide – “Carolina Dreaming” – from our website. It’s short, easy to read, and will provide you with the basic information needed to make your trip a roaring success. For your free copy, go to:

www.ncmountainland.net/manualdesc.html

Ready to come to the mountains? Call us at all reasonable hours, seven days a week, at 800/849-9225. Ask for Paul and we’ll set up a time and place convenient for you. We’ll take whatever time is required to help make your land ownership dreams come true!

ARCHIVE: CLICK HERE

BUYERS CHECKLIST: CLICK HERE