What's up everybody! I'm new to the wholesaling land space, currently doing the builder-first strategy where you build relationships with builders, get their criteria and the price they typically pay for infill lots, then use that to set my offer price with the landowners. I've been cold calling builders for a couple weeks, and I'm talking with a pretty big builder in the Indianapolis area now.
They gave me their criteria and areas where they buy... but no price. I've asked twice and both times they say they don't have a typical price range, just that they're "flexible" on pricing
My question is, what would be the best way to determine what a good offer would be when I get an interested seller? A percentage of full market value based on local comps? A percentage of assessed land value?
I've worked in marketing at a real estate company for years, so I'm very familiar with formulas for calculating offers when wholesaling houses, but would love to hear best practices for determining offer prices for land. Thanks!
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
8mo
@Ben Nichols There’s a lot of nuance in valuing land. You definitely can't price land based on percentage of built homes. Two parcels on the same street with same zoning that both allow the same number of homes can sell for materially different prices because factors like lot orientation, site-work requirements, and how efficiently homes can be laid out directly impact the economics. Those variables materially affect raw land value, which is why you’re not getting a firm number.
That's one reason why you aren't getting a firm number. Secondly, builders get overwhelmed with a ton of Ben Nichols calling and don't take offense to this but while they don't want to shut the door on you, they don't care to invest much time in you either. Especially if you are contacting larger builders.
Investor · Willis, TX · Member since 2014 · 245 posts · 124 votes
8mo
Are you able to look up said builder who "won't share lot price" to see what else they have purchased in the last 6 months? Not sure if that information is available to you to get an idea of what they've paid before and why ("why" being location, size of the lot, etc.).
Builders, like anyone else are looking for a deal. Many of them have little to no experience dealing with wholesalers and it's why they say, "flexible." If I were in your shoes, I would go the extra effort to explain your value proposition and why you knowing their purchase price "ball-park" is extremely helpful to them and you.
If this results in limited movement, they are likely not a good fit for you to add them as a buyer. They will think you're doing something illegal or scamming somehow and will probably leave you hanging at the closing table. You'll need a back up strategy or back-up closer.
Best of luck man! If you get anything in the Texas market, in the actual suburbs, let me know. Houston/Dallas suburbs. I'm able to pay $37K-$40K for around a 6K sf lot. I've bought 4 off market in a row in Dec 2025.
Thanks for the info Juan! Very helpful. I did plan to try and see if I could find what they've paid for lots in the areas they shared with me—I'll start there before reaching back out to them. I'm certainly not married to the Indianapolis market, so I'm definitely open to start looking for deals in other markets like yours as well. Really just looking to get my first deal under my belt. I'll send a private message on here to get your email, would love to add you to my buyer's list!
Thanks for the info Juan! Very helpful. I did plan to try and see if I could find what they've paid for lots in the areas they shared with me—I'll start there before reaching back out to them. I'm certainly not married to the Indianapolis market, so I'm definitely open to start looking for deals in other markets like yours as well. Really just looking to get my first deal under my belt. I'll send a private message on here to get your email, would love to add you to my buyer's list!
Awesome man! Gotta get creative with finding deals for yourself!
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
8mo
@Ben Nichols There’s a lot of nuance in valuing land. You definitely can't price land based on percentage of built homes. Two parcels on the same street with same zoning that both allow the same number of homes can sell for materially different prices because factors like lot orientation, site-work requirements, and how efficiently homes can be laid out directly impact the economics. Those variables materially affect raw land value, which is why you’re not getting a firm number.
That's one reason why you aren't getting a firm number. Secondly, builders get overwhelmed with a ton of Ben Nichols calling and don't take offense to this but while they don't want to shut the door on you, they don't care to invest much time in you either. Especially if you are contacting larger builders.
Real Estate Consultant · Denver, CO · Member since 2026 · 38 posts · 8 votes
8mo
Ben, are you looking at raw land, entitled land, paper lots, finished lots? All of these have different variables when determining pricing. For example raw land is usually based on a per acre amount, you can pull a cma for land sales in the area for comps. The others are based on where they are in the process, Zonda or other similar platforms can help with pricing guidance on these.