Transcript of a discussion between Scott Bossman and Mike Zaino about pricing and negotiating for landlocked parcels. They describe their workflow of pricing by area rather than parcel, addressing landlocked status during due diligence, using landlocked conditions as negotiation leverage to lower purchase price, and then repositioning such attributes when reselling. The tone is practical and conversational with negotiation tactics emphasized.
Chapters
Question. You ready? What is your feeling? This is a good question. What is your feeling on landlocked properties and how much do you discount the offer price? That's from Ken G. Must be Ken Green.
Green. So look at. It's not that I. When we look at an area, we go in a very specific area and I think if there's one landlocked property, we're probably thinking like Nevada, there's a whole bunch of them. So. So I'm going to price the whole area accordingly. I think that's my first answer. I'm going to price it accordingly. And does that make sense? Like, because I think a landlocked. I typically think of like Nevada and you're going to see large areas that are going to be quote, unquote, landlocked. But I would price the whole area accordingly. I don't know if I just discount because I'm not going to go through. I don't go. If we're doing the. Here's the thing. When we do our offers, we're not going to go through property by property. We're going to grab an area and price it when it comes back. Now you might be saying when it comes back and for due diligence purposes, or when we're researching it to make a decision on buying it, I am most certainly going to say to them, oh, this is landlocked, and I'm going to discount and I'm going to use that to my advantage to get a better price. So I guess that's the way I'd answer that.
Yeah, I think for me, that question comes during the due diligence period.
So.
Exactly. Like you said, we're not analyzing that prior to offering or prior to doing our county research or pricing or that type of thing. We're analyzing a particular situation during the due diligence period. And yeah, I mean, we had a whole show. One of our first shows, Zaino, in our first year was the what we had like five ways to five negotiation tactics on the buy side. Right.
I love that. You know, we think we could talk about another Nightcap musical. Was it 50 ways to leave your lover. Stand out the bat Jack. Get a new plan Stan. We could have that for land.
We could have that for land.
50 Ways to Sell your land.
We had a term for it, though. I can't remember what it was. Like the. I can't remember what it was. But. But yeah, I mean, you know, if. If when you're doing your due diligence, you determine, hey, I like this 40 acre parcel but it's a mile off the road. That's going to affect my price. And I'm going to have a conversation with that potential seller and I'm going to say, listen, when I offered you this dollar amount, we thought it had road access. In our research, we found out it does not have road access and. Anyway, go ahead.
No, I was gonna say something Mark said years ago. We always use something that's like, odd about a property, devalue it. But then when we sell it, we turn around, use it to value the property, increase the value. So it could be. It's landlocked. I can't get to it. Then you sell it. No neighbors, nobody will be near you. Oh, there's a wash through it. I'm sorry, I'm gonna have to. I'd love to offer you 2,000. It's gonna wash. I can sell for a thousand. Then somebody else sees the stream. Seasonal stream. Seasonal stream right down the middle. It's true, you tend to do that, but it's. It just shows you this whole thing is perception.
Yeah, it's a little too hilly. There's a little bit too much of a grade. You can build a hole. Monstilts.
It's the true statement, though. It just shows you everything is perception and you can change perception like that. I think that that's a good answer, though. I think that we're not going to just price property by property. That would just be forever. We can do it. We don't want to do it. We're not going to take that kind of time and labor over each price. We're going to say, here's your price. They reply. People come back to us with. With offers and counteroffers. We'll check those properties out and we'll act accordingly. And of course, if there's an issue, we're going to devalue. We. That's what we do. We negotiate. We devalue.
We negotiate. That's right. The negotiator, Mike Zano, that's your backstory.
