I'm brand new to real estate. I recently purchased eight vacant land properties in Colorado and I'm looking to sell them asap. I'm looking at my competition (same size, area, etc) and offering my lots at just under their price. I'm selling on ebay, zillow, craigslist, etc. My question is this. Do I drop my prices in order to possibly sell quickly or does that look bad and deter buyers? Any help on this question and other advice would be GREATLY appreciated. Thanks everyone!
What deters buyers is when RE is not priced appropriately in relation to its value. Are you using sales comps or just comparing to land this is for sale now? It doesn't matter how much the competition is asking what matters is how much land is actually selling for.
@P.J. Reilly land is exceptionally hard to move. I have been told that you must be at least 50% below market for someone to bite on raw land or land that has little to no income potential before someone will be motivated to purchase it from you. So if market is $10K then it will need to be offered at $5k to get someone to buy it and sit on it until someone will buy it at $10k. Also just because there are other properties listed at $10k does not mean that is the market for the land. You need real comps where similar lots have actually sold. Land is one thing that people will just sit on and have it listed way too expensive to sell in hopes of hitting the jackpot.
Thanks for the insight guys. That makes sense. I'll re-price after some more research.
Just wanted to follow up with this topic. I did a little more research and re-priced my lots. Of the eight lots for sale I have now sold 5 since we last spoke with roughly a 275% profit. I'll roll this $ into more land and keep moving forward. Thanks for the help!
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