Is The Price Right? Listen To What The Market Is Saying

Hey, it's Mark Podolski, the Land Geek, with your favorite niche real estate website, www.thelandgeek.com. and today's roundtable, we've got the usual suspects. We've got the big Papa Tate Litchfield Tate, how are you?

I'm great. Happy to be on.

Awesome, awesome. We got to read in the mailing, breathe out the marketing. Mike Zano. What's up, Mike?

Not much. How you doing?

I'm so glad you're safe after all the gas explosions in your area.

That was crazy.

Yeah, yeah. We've got the technician, Eric Peterson. Eric, how are you?

I'm doing good.

Good, good. We've got Mimi, the terrorist hunter Schmidt. Hello, Mimi.

Hi, how are you?

Good, good. We got Bearland Aaron. He's back after a little hiatus. Good to see you, Aaron. Good to see everybody too. And of course, you know him, you love him. The professor, the Brain, Six Sigma Scott Todd from scotttodd.net landmodo.com and most importantly, automating your Craigslist and your Facebook postings. Postingdomination.com thelandgeek Scott Todd. How are you, Mark? I'm great.

How are you?

Pulse is still normal. Respiration is fine. I can't complain. We have a new nickname for Mimi.

Yeah, it was Mimi Jack Ryan.

I watched it for the first time last night. It was really good. I watched two episodes. It was fun.

It was good.

So it's Mimi Jack Ryan, Schmidt. There you go, Mimi. Which do you prefer?

The Terror Center.

All right, we're gonna go with Terror Center.

She shot down Scott's nickname.

All good.

Listen, it does seem a little weird that we would say Mimi and then give it like a guy's name. Jack Ryan, you know?

Yeah.

Jack Lean Ryan.

Yeah. Or maybe Mimi Ryan, but that confuse everyone.

People start calling Orion.

Yeah, I don't know. But you know what? The official Land Geek Motivation group has been generous this week and they have teed up some excellent questions for us. So let's go to the roundtable and ask this question. The first question is from Laura is regarding pricing when selling parcel. She says she checked comps online and she found a range, but there's a big range. So we. When do you know to lower your price without giving the parcel away? Let's start with the Zen master.

So when to lower the price without giving it away? Yeah, well, you know, I don't know. I think that, you know, you gotta competitively price your parcel. But the advantage that we have over everybody else is that we're buying them so cheap. Right. So, you know, we can basically sell retail, but we sell on, you know, you know, on a small monthly payment. People spend more money on coffee. I always say it.

Right.

They literally will spend more money at Dunkin Donuts than they will for a parcel of land, you know, but. So I don't think that initially, you know, like trying to mark it down or worry about. I don't think that really applies. And I'm thinking more that, you know, we have the ability to sell these parcels at retail or even more than retail because people are focusing on the monthly payment. That's where our real selling point is, that we can allow them to buy something so cheap. So it's definitely not going to happen right away. I'm not going to try to come in now. If I wanted to get a cash sale.

Yeah.

Then I'd want to come in really competitive, right below everybody else if I was trying to force that cash sale. But I don't know. Am I answering the question? I'm not even sure I am.

I don't know. Eric, is he answering the question or is he kind of ducking it?

No, I think he answered part of the question anyways in terms of, you know, how, when to lower the price or if to lower the price. Yeah, I think you got it.

Okay, great, Great. So I just went on Facebook. Are you sure we're going live? We're streaming live right now?

It says it is.

I don't see it. I mean, it says it on our end, but I don't know if I said it right on Facebook.

But I'm not seeing it on Facebook.

But it says it is.

Yeah, so I'm gonna. What's that?

There's like one more button right at the end.

Oh, see, I didn't hit that. Yeah, so that's what it is. So I'm not just putting the link here to see the. Wait, says copy. Streaming link. I screwed it up. This is not working. All right, I'm gonna go. I know, but I did something wrong. Alright, so I'm gonna go to more Stop Live stream and then do it again because I don't see it on.

I see your question. Any questions for the roundtable panel?

All right, so let's try it again. See, Mike, I'm blaming Mike because I can't take responsibility for any technical issues at all. It's a problem. But let's go to Mimi. And while we're setting this up, Mimi, how would you answer that question as far as when do you lower the price and how do you even get an idea when the comps are all over the place?

The comps are all over the place. I use financial calculator 10 IBB. Is that what it's called? Let me make sure.

10.

Right. And so I want my IRR to be over 100%. So if I've looked at the sales data and I've looked at Land Moto and Craigslist and Land and Farm and got the type of property I have and what it should be selling for, I don't always just have one price for a piece of property. I vary it to see what people will bite on and then market what sells more frequently. Right. It's usually a cheaper, more easy to pay monthly payment. Right, right. But I won't. I usually don't price below 100% of the IRR. And then if there's downward pressure on the market and you want to go, I won't go below 80%. When it gets to lower than 80 and I start considering whether I should be in that.

I see, I see. Eric Peterson, do you do anything differently?

I don't know that I do anything specifically different. I wonder if the nature of the question comes down to, I think when a lot of people start off buying and selling land, they want to sell the property.

Right.

And that's always kind of the biggest hurdle to overcome once you own the property is now you got to sell it. And people freak out. They put their ads out, they advertise it on Facebook, Craigslist, wherever, Land Moto. And, you know, they're not selling the property. People are asking questions about it. Maybe they're inquiring to some degree, but no one's pulling the trigger to buy it. And, you know, I think it's really easy to start to feel like, okay, well, maybe I didn't price it right. I got to lower the price a couple hundred dollars today or next week or whatever. But ultimately it's just about bringing enough buyers, potential buyers to see your ads. Because I think what we find oftentimes is it takes somewhere around 50 leads to sell the property. So if you've achieved that but yet you don't have a sale, then maybe it's all right to start considering lowering the price. I mean, you should have plenty of room to be able to do that if you bought the property. Right. So I don't know. That's my thought on it.

Yeah, that makes sense to me. Bear Land. Aaron, what are your thoughts?

Often I will first raise the price just to see if it is some, like If I missed it. And because sometimes when they're too cheap, people steer away. They're not sure why it's so cheap, you know, so sometimes I'll go ahead and just raise that cash price or the monthly payment, maybe $10 or something like that, just to see what happens. If I don't get any traction with that, then I consider lowering it. And oftentimes what I'll do first before I actually lower the price across all my ads, you know, like maybe change my land moto listing to have a different price. That sort of thing is, you know, I'll kind of shoot it out on the buyers list or even a special Facebook ad to the buy sell groups where I, you know, listed at the price that, you know, I have it listed at. But I work some sort of extra deal, you know, some sort of, you know, gotta sell now, Facebook special, you know, this weekend only if you, you know, you know, I'll give it to you for this price, you know, or same thing on the mail list, that sort of thing. And then if I still don't do anything, then I have to consider, well, maybe I overpriced this property, you know, and we, you know, we did buy it cheap. So, you know, you know, there's a lot of room there so, you know, I can start working it down. And I've done that a couple times and like hit a point where all of a sudden people are just all over it, you know, so. But I don't go a lot at a time, you know, just small increments over time and see, you know, you'll see where it kind of clicks in and then, you know, then, you know, when you're buying the next property out there, hey, this is where I now I need to be. So you can change your offers and that sort of thing to be, you know, where you want to be, margin wise.

Yeah, I love that because then once you get that sale at that price, you really get the right data and then, you know, can do that, that next batch of offer letters, you know, you take that sale price and you divide by four and that's your comp right there. That next, the next dash of all for sure. So Tate, what about you? What's your thoughts?

You know, honestly, I don't change my pricing that much. Once I've determined what a property's worth, I mean, that's kind of what I go with. I don't ever really feel the need to fire sale properties because I'm in it for the long run. And I think like Eric said, we get that anxiety that we need to sell, sell, sell super quickly. But the more property you have and the more property you have on the market, the less likely you are to feel this way. So, I mean, if you have 10 or so properties in your inventory and you're getting leads on a few of them, well, the ones that might be, quote, unquote, priced too high, it doesn't really matter because you're always moving other properties. So I think on my pricing, I tend to be on the high end. I look at a lot of the comps, and mine are almost always more expensive than everyone else's, yet I'm still selling property as fast as I can get it. So I don't really change my pricing that much. I'm competitive. It all comes down to the way we do our due diligence in our county research and our. And our pricing of individual lots. But once we've decided what we're going to get for it, we factor that in ahead of time, and it kind of determines what we pay for.

I love it. I love it. Scott. Todd.

Well, you know, Mark, what we see a lot of times is we see people that they want to go to the higher end because they have put a price on it, you know, like, they've looked at it, at it, and they've said, well, okay, this property's worth $10,000. Or they really want $10,000, right? Like, they saw a comp out there, it was like $10,000. And they're like, man, I really want to sell this property for $10,000. And so then they go to the high side. And then what we see sometimes is they hang out the high side. And it's cool when you're, when you're like, Tate and I would sound like at that point, too, you know, you get to the point where you're just like, whatever, it sells, it doesn't sell. It will sell eventually. However, when you're new and you're trying to kind of get going and you're kind of like needing to sell one to go buy one, and it's that mindset, well, then if you try to hover on the high side, you know, and hang out there, well, then it's going to take the sales process a lot longer, so why not kind of begin to move back down? Give it two weeks. The market's talking to you. The markets always talking to you. It's talking to you. With your response rate. It's talking to you. When you place Craigslist ads or lan moto ads. And you, you do or don't get responses to those ads. The market is talking to you. And what you need to do is you need to listen to the market because it's not what you want, it's what the market wants. And so you kind of have to look at and go, well, man, I've ran this ad for this property for two weeks. I put it on everywhere I think of, I'm not getting any response, and I've got it for $10,000.

Great.

No problem. The market's talking to you. Begin to lower it lower to the next tier. Whatever you've determined that next tier is. I mean, every property is going to be a little bit different, lower to the next tier. But essentially what you want to do is you want to find that midpoint to where like, you find the person that says, I want the property, and then the terms price kicks in and all the other stuff doesn't really matter because you found the market, but the markets always talking to you. A lot of times people don't listen to it.

Right, right. For you, Eric, the metric is, once I get 50 leads on this one and it doesn't sell, is that the point in time where you say, okay, something needs to change with the pricing? Either I'm gonna go higher, like Bearland Aaron, because maybe the market thinks it's too good to be true, or you go lower. What's your sort of litmus test to change that pricing?

So, I mean, for me, it's. It's pretty much that. So those, those 50 leads, if I'm tracking those closely and I'm seeing that and I'm ready to move that property, then, you know, I'm going to relook at the market and decide if I want to go up, down or whatever and make the decision at that point. However, oftentimes, you know, just like Tate was saying, I mean, I've got enough inventory that sometimes I'm okay just letting them be and, and waiting it out. But early on, when you only got a couple properties, I think that's kind of a good metric to look at. If you're getting 50 leads but you're not able to convert a sale, consider checking your comps and then make an educated decision about how to revise your pricing.

Right, right. I'm going to quickly go around, just ask everybody, but I know that, you know, we like to do it where we'll take a comp and like, screenshot the comp and then put a line through it. So we're anchoring It. Right. So let's say, for example, the comp that we like is $10,000. Then we'll put a line through that comp and say ours is 9,200. Right? And essentially anchoring the price of 10,000 and signifying the market. Look, you're getting a deal on this, right? And that. This is how we're showing you, that you're. You're getting essentially, you know, this. This 8% discount on this property or whatever it is. I don't know if I'm doing my math right, but I think I'm not. Anyways, I digress. Tate, are you using anchoring?

Yeah, absolutely.

Zen Master.

Especially in wholesale.

Yes.

The technician.

Yes.

Terrorist hunter. Yes. Bear land.

Yes. But do it more.

You need to do it more. Yeah, the Professor. You're not anchoring.

You're.

You're on mute.

Sorry.

Don't do it.

No, you don't do it. I mean, I think the fact that Scott doesn't do it and is still as successful as he is kind of says, hey, I could be more successful. There's still room to improve. This is Behavioral Economics 101. Scott Todd. No, I get it.

I know, I know.

He's just thumbing his nose at technique.

Look, I'm just so good. I'm gonna, like. I'll write my own book one day. Say you guys are all wrong.

Siri, send Scott Todd the book. Thinking fast, thinking slow, Daniel Kahneman. Okay, so speaking of books, it's a perfect segue to our tip of the week. So for those of you that are watching on Facebook, thank you so much for spending time with us. I'm gonna stop the streaming so that you're all encouraged to actually subscribe to the podcast and download the podcast, because that actually helps us and listen for the tip of the week. So I'm gonna stop now. All right, Eric Peterson, what is your tip of the week? A website resource, A book. Something actionable for the art of passive income listeners to go right now. Improve their businesses, improve their lives. What have you got?

You're gonna just hand it off to me? All right, I'll take it. So thelandgeek.com readinglist there, you're gonna find recommendations from, think just about all of us here on the podcast, all the. All the coaches. Anyways, just, you know, the. Some books we'd recommend and maybe why we might recommend them. So take a few minutes and take a look and, you know, get an audible book or get a paper book.

Yeah, let's. Let's pick on the Zen Master and his three books. He's got the E. Myth revisited. The Science of Getting Rich. And the obstacle is the way of those three books, Mike. And you're on a desert island for 90 days and you can only bring one of those books. Which would you bring and why?

Well, Think and Grow Rich, the one that Scott. And the reason I got this one from a pod, one of these roundtables.

Right.

Scott, you brought this up, this book. And I just think it's such a mindset shift. That's like. Mindset shift. Say that three times fast. It just really alters your perception of reality. So I think that's the way I go. It's like a mantra, that book. It's like a long mantra and it really works. And so I go with that. And I think we're going to get a new nickname for Squatto. Can I say this now? Because every time I say Professor, I say Professor Ann Marianne here.

I gotta get a.

Just like I can't get. I'm glad you didn't go with Jack Ryan for me because I can't get. It's like John Jacob Jingleheimer Schmidt. That's all I hear every time you say Jack Ryan. So I think we gotta stick with Teresunda.

Yeah, absolutely.

Sorry for the segue, but Think and Grow Rich.

That one.

Think and Grow Rich. Okay.

The Science of Science of.

Yeah, Now Think and Grow Rich is a great book by Napoleon Hill. That's like a classic book. But this is different.

When was this written, Scott?

1910.

Man. That's a long time ago.

Yeah, and there's a companion book, how to live on 24 hours a day. That's very similar.

Marlon Bennett. I've read that book.

Yeah, that's cool.

I mean, it's on audible. There's the trilogy of the Science of Getting Rich, the Science of Being well and the Science of Being Great by that author.

So they're probably free, right? I think audible, like they call them classics and don't even really charge much a penny maybe. I don't even know.

It's like a $95 or 486 depending on. Yeah, they're cheap.

Yeah.

You know what's not on, by the way, because we're so not self promotional. Here is Dirt Rich. So there's lots of bonuses worth dirt rich, including two free due diligence reports, $500 coupon, some other goodies. Just go to the landgeek.com Dirtrich and you won't see it on the reading list because Danielle hates when I Self promote. So I have to do it on the roundtable.

And we figure everyone's already got it.

Right, and everyone's probably already got it because it's the most relevant, the books, if you're interested in land investing. That being said, I do want to mention that today's podcast is sponsored by Nightcap. Nightcap is epic. They sing, they dance, they drink obsessively. It is the most fun you're gonna have on a Wednesday or Thursday night. So the Land Geek official motivation group. And see when Nightcap is streaming live with the zen master Mike Zaino and dude buddy Scott Bossman. And if you're shy, you just want to talk to them directly, go to thelandgeek.com training and schedule a call. So it was really important that we had, especially for the Big Papa, a 30 minute roundtable podcast, because he does have the pretentious hard stop with the baby. And I think we made it. Scott. Todd. Are we good? We're good.

Mark.

Mike.

Great.

Great. Eric.

Yep.

It's another one for the books.

Mimi.

Great.

Bearland.

I love you guys.

It's great.

We love you too.

How many weeks of boot camp is it?

Four. Four more weeks. Wow. Is there any openings?

Are we booked? I didn't know.

Great. D. Sure. We're booked up. I spoke to Danielle today. She's trying to get a bigger room, but at this point, I think we are at standing room only capacity. So we might get two more, three more in. But it's, you know, we might be a fire code violation at that point, which I know for you, Mike would not be good.

He can't be part of a fire code violation.

He can't be part of the fire.

Yeah, that would not go well for Mike.

Right, right. So I just want to just check in with the Big Papa to make sure he's happy with the pace and length of the roundtable podcast today.

Yeah, I was happy. It was good. I feel like we touched on all the. On some really good topics today. So the pace was good. The timing's perfect. I'm good. I got nothing to complain about here.

All right, great. And I just want to remind all the listeners, please support the podcast. You got to subscribe, you got a rate, you got to review the podcast. Send us a screenshot of that review. To support the Land Geek Calm, we are going to send you for free our $97 passive income launch kit. Thank you so much. Are we ready? Are we doing this? We are. 1, 2, 3. Freedom ring.

That was good.

That was good.

That was pretty good, I think. You know, it's just kind of sad to see Bearland not say it, though. You know, Bear land. Do you want to just say it?

Just let freedom ring.

I think that's the way to end the podcast. Thanks, everybody.

So from here on out, Bearland get.