Why Land Owners are Selling at Rock Bottom Prices Right Now (LA 1274)

Why Land Owners are Selling at Rock Bottom Prices Right Now (LA 1274) Transcript: Steven Butala: Steve and Jill here. Jill DeWit: Hello. Steven Butala: Welcome to the Land Academy show, entertaining land investment talk. I'm Steven Jack Butala. Jill DeWit: And I'm Jill DeWit, broadcasting from sunny Southern California. Steven Butala: Today, Jill and I talk about why land owners are selling at rock bottom prices right now. Why do you think, Jill? Why do you think? Jill DeWit: Well, I'm not going to tell. Steven Butala: I know exactly why. I'm going to learn from you on this. Jill DeWit: Well, I'm going to give you some numbers and then we'll talk about it Steven 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. Jill DeWit: We don't want a 30 second show. Steven Butala: Maybe people do. Jill DeWit: Maybe people do. Sorry, I'm sorry. For those of you, viewers and listeners who want a 30 second show, not happening, so just- Steven Butala: I get emails like that once in a while, do you? Jill DeWit: No, they'll email you. It's your stuff that comes up on there. If you have any questions or concerns, email here at [crosstalk 00:00:56] is not my email. Steven Butala: Can you guys just cut to the chase- Jill DeWit: I know. Steven Butala: And stop horsing around and just tell us how to buy and sell land? Jill DeWit: Make it easier for me. I listen to it at double speed anyway. [inaudible 00:01:08] I never do that. I always forget that, that there's a way to do that, or they read the transcripts. That's funny too. Okay. Back to the question. Herbert wrote, "Hello all. I'm having trouble learning how to price counties efficiently. I'm used to shotgunning a whole County, but I know there's better ways to go about pricing." Do you want to explain shotgunning real quick? Steven Butala: Yeah. So there's a couple of ways to price a County when it comes to land. You can establish some version of, "I believe that the average sale price in a County is a thousand bucks an acre, so I'm going to send out offers for $200 an acre and sell it for 400 or $500 an acre as a wholesaler." That's shotgunning. Jill DeWit: Shotgunning is you don't get specific about the area- Steven Butala: The acreage. Jill DeWit: About any of the features. Steven Butala: You just get it in the mail. Jill DeWit: You just say, "You know what? Every single person is going to get an offer from me at this price." Some of them might be too much. Some of them might be too little. I'll just see who calls me back and then- Steven Butala: And I'll deal with it then. Jill DeWit: And so that's shotgunning. So then Herbert goes on to write, "How would you price, for example, Pinal County, Arizona, 40 to 20 acres. How do you identify significant differences in price points for certain areas when researching a County? I can't seem to find a significant difference in market values for the different areas of Pinal County so that I can price by APN or even zip code. I just don't see a difference. I'm not from nor have I ever been to Arizona, so I'm unsure of more in depth characteristics pertaining to anything that affects our pricing. I'm trying to put my next mailer in the best position to be successful, so any advice would be greatly appreciated in my book. I just want to know the thought process behind going about the steps." Steven Butala: So pricing is the hot topic right now. If you go through land investors, I just did it to put together the questions. Obviously this one made the cut for all our shows this week and pricing is a predominant topic for good reason, because I think Jill and I have been talking about it forever, but here's the deal with pricing. As we get further into this information age that we're in, that seemingly probably endless now, or at least for the rest of our lifetime, the prevalence of data dramatically has increased recently on complete...