Everyone wants a great deal!
This is true whether you’re shopping for a car or a piece of Alabama land. But, when it comes to land, our experience is it’s easy to be “penny-wise and pound-foolish”.
So, to prevent having regrets, here are some tips to keep in mind when you’re ready to make an offer on that great piece of land you just found after months of searching:
“Fair” has a wide range
Balance your opinion of “fair price” with the understanding that when it comes to land, “fair” has a wide range. On the one hand, be sure to look at real world data (comp sales) so you don’t pay too much or conversely, have an unrealistically low price expectation. But, on the other hand, use this information loosely, as a general guide. The reason is that with rural land prices, nearly identical properties can sell in a surprisingly broad range of value.
The 20% rule
The high and low end of this range may be 15% to 20% apart with both ends considered “fair”. Only you can say what you should pay for a property. But, our experience is that it can be “penny-wise and pound-foolish” to let a 5% or 10% difference in positions cause you to lose a property you love and that otherwise meets your criteria.
“Fair” vs “price to own”
No one wants to pay too much. So, do your homework and look at comps. Negotiate hard. But, at the end of the day, there is “fair price”, and there is “what it takes to own it”. Step back and take an objective look. The difference can look insignificant when viewed from the satisfaction of owning a great property.