It is not want you think….READ MORE! It has happened to me a Gazillion times. You meet with the property owner, share comparable sales and discuss a marketing plan. Later, you find the property on the MLS or other website and it is listed 25-50% above the ‘comparative market analysis’.
Of course owners/sellers often have an inflated opinion of value, they would have never bought the property if they didn’t think it was ‘special’. They are emotionally attached to their property, therefore it is easy to tell an owner/seller what they want to hear. You have to have the data to support your value! One scheme to be mindful of is where the Realtor intentionally provides an inflated value….we call this “BUYING THE LISTING”. If you are good at what you do, you will keep records of land and farm sales in your area of interest. I have been keeping up with these sales for over 10 years. These sales are confirmed by courthouse records and conversations with lenders and appraisers. These sales only provide a benchmark and must be adjusted for property attributes i.e. amount of timber, presence of ponds and lakes, access, road type and curb appeal.
The property will not sell at this inflated price so stay in touch with the Realtor that provided you the honest and accurate value! If you are not getting activity on your property, you will need to make some price adjustments.
G. Kent Morris
Accredited Land Consultant
Associate Broker, Bickerstaff Parham Real estate