Ksparks1970, Home Buyer in Crested Butte, CO

What percent off list is a reasonable offer for land?

Asked by Ksparks1970, Crested Butte, CO Tue Aug 30, 2011

I am considering a purchase of a parcel of land in a resort community. The parcel has utilities to the property line. 10 months ago it was on the market for much more than today's list price. I'm not sure what percent off list to offer...

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Answers

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The best way to begin is to review the sold comps in the neighborhood as well as current list prices for active listings. For our market, some sellers are motivated, some are not. Some have owned their property for a long time and have no debt, others are leveraged to the hilt. In Crested Butte, we have experienced an incredible run up in vacant land values (2005-2006) and then a dramatic plunge in values (08-09).
I'll tell all buyers to "find the seller's bottom line". Start low and be prepared for counter proposals. Its the best way to get a deal.
0 votes Thank Flag Link Tue Aug 30, 2011
There is no "reasonable" % to offer below asking price for any property. I would offer what you feel the property is worth, and you find that out by asking your agent to help you with the comparable sales in the area.

Let's put it another way - if a property is being listed at $100,000 and the most recent comparable properties have sold for $200,000, would you offer less than the $100K? I think not, as you wouldn't want to miss out on the property when someone else bid more than you.

Now, if a property is listed at $200K and comps show it to be worth $100K, I'm sure you're going to offer 50% off the asking price, as you don't want to overpay for the property.

Use that as a guideline - figure out what the property is worth, and then make an appropriate offer based on that.
0 votes Thank Flag Link Tue Aug 30, 2011
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