Why Not to Accept a Low Ball Offer Too Soon (LA 1744)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill K DeWit:

Hi.

Steven Jack Butala:

Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.

Jill K DeWit:

And I'm Jill DeWit, broadcasting from the valley of the sun.

Steven Jack Butala:

Today, Jill and I talk about why not to accept a low ball offer too soon when you're selling your property. Boy, if I had a nickel. This whole business, or this whole episode, came from during this uptick in pricing and hot market hotness that we're all experiencing right now, Jill and I sold a bunch of properties too low and too fast. And so we're going to talk about a little bit about that and how to gauge where you should price your property these days versus, let's say, maybe, a couple years ago.

Steven Jack Butala:

Before we get into it. Let's take a question posted by one of our members on the LandInvestors.com online community. It's free. And I hope you know that we have a full blown operational commercial printing company called Offers2Owners.com. Jill and I set out a lot of years ago to rectify poor perform in the industry. We set up our own company and a few years ago, we set that up for you. You can either call (800) 725-8816 or you can email [email protected] and see what they have to offer if you're sending out blind offers to real estate owners.

Jill K DeWit:

Just like we do. All right, here's our question. Greg wrote, "Hey, do you guys ever use a non broker/agent for boots on the ground in your due diligence phase? I've got a timber guy that hit me up from an area mail who wants to be my boots on the ground. We're on the same page but I'm trying to see how we can come up with a contract test agreement for compensation, make sure I don't get cut out of the deals I have him look at. I appreciate any suggestions if y'all have any experience with this." Oh, that does worry me a little bit.

Steven Jack Butala:

I have real bad taste in my mouth about this whole thing.

Jill K DeWit:

Yeah.

Steven Jack Butala:

What this person's asking is, I sent a mailer out to a bunch of owners and I'm getting responses back. And we're doing the Land Academy thing. Timber guy called me back, probably because he got one of your letters, or he is talking to a landowner and said, "Hey, how about I just go bird dog these properties for you? And the ones that we buy together, you pay me?" What he's really saying is how about you shove me the great deals that you got and I can steal them from you?

Jill K DeWit:

Yeah.

Steven Jack Butala:

That's what I think.

Jill K DeWit:

Yeah. I wouldn't do this.

Steven Jack Butala:

The boots on the ground that we've had with great success are we have a personal former relationship with them.

Jill K DeWit:

Or they're Land Academy people.

Steven Jack Butala:

Or they're Land Academy members. And that's what I was going to say. Find a Land Academy. Often, very, very often on a Thursday call, when we look at people's deals to give them our opinion about whether or not they should buy them, there's other people in the group that'll chime in and say...

Jill K DeWit:

"I'm right by there."

Steven Jack Butala:

"I live 20 minutes from there. I'm happy to go take a look at it for you."

Jill K DeWit:

Right.

Steven Jack Butala:

That's what [crosstalk 00:02:52]-

Jill K DeWit:

Yeah. I'm sorry. I got some red flags.

Steven Jack Butala:

Me too.

Jill K DeWit:

I wouldn't do that.

Steven Jack Butala:

Today's topic, Jill's going to talk about why not to accept low ball offers too soon. This is why you're listening.

Jill K DeWit:

We haven't had this in a while. When I say while, I mean, weeks. It hasn't been that long, but it pops up every now and then that someone says, "Shucks, I wish I wouldn't have taken that offer. They came in so fast. I was so excited. It sounded great. Hey, I doubled my money, even though it wasn't what I listed it for. It was a good offer,