Are You Leaving Money on the Table? Discover the Costly Mistake Many Land Sellers Make.
Two adjacent land parcels, remarkably similar in terrain and features, present a real-world demonstration of the critical impact of accurate pricing in real estate. This scenario serves as a cautionary tale for sellers who may overestimate the value of their property.
Parcel A was listed with Agent A of the Mossy Oak Properties Land and Luxury (MOPLL). The pricing strategy was grounded in a thorough market analysis of recent comparable sales, considering factors such as land composition, timber value, accessibility, and existing infrastructure. The listing was presented with professional-grade visuals, including a compelling video that effectively conveyed the property’s potential and enabled a prospective buyer to envision themselves enjoying the land and its features.
Parcel B, listed with Agent B of ABC Realty, was priced approximately 65% higher than Parcel A, despite its very similar characteristics. While it offered some additional features—a garage, included equipment, improved food plots, etc.—these enhancements did not justify the substantial price discrepancy.
The initial market response was telling. Parcel B suffered from the initial launch, generating minimal interest. After more than a month on the market, it had accumulated only 88 views and 3 saves on Zillow. In contrast, Parcel A (Agent A’s listing for MOPLL) experienced an immediate surge of activity as soon as it hit the market. Within the first hour on the market, it surpassed Parcel B’s month-long online engagement metrics, achieving 91 views and 9 saves on Zillow.
This disparity underscores a fundamental principle: market perception is driven by value. Parcel A’s realistic pricing attracted serious buyers, leading to numerous inquiries, tours, and ultimately offers. Multiple prospective buyers even expressed interest in acquiring both parcels if Parcel B’s seller would reduce the price to better align with Parcel A’s market-appropriate asking price, highlighting the potential for synergistic sales when properties are priced competitively.
The appraisal process further validates the inherent risks of overpricing. Parcel A’s sale proceeded, with the appraised value closely aligning with the contracted price, demonstrating the accuracy of the initial market analysis. However, Parcel B’s inflated price presents a significant potential obstacle. An appraisal that comes back significantly below the contracted price—which is precisely what will occur if Parcel B goes under contract with a financed deal—forces difficult decisions, leaving the buyer with three real options. The buyer might opt to terminate the agreement, they would need to convince the seller to renegotiate a lower contract price, or they might be obligated to cover the difference out of their own pocket (which could be thousands of dollars, if not more). Any of these scenarios introduce uncertainty and risk, potentially jeopardizing the sale and extending the property’s time on the market as the buyer is forced to determine how they’d like to proceed. In essence, the potential for a low appraisal acts as a hidden time bomb, waiting to disrupt a deal that was built on an unrealistic price.
The consequences of overpricing extend beyond missed sales. Prolonged market exposure can lead to:
1. Diminished Buyer Confidencempetition, More Exposure
Extended time on the market creates the impression of underlying issues, deterring potential buyers. Prospective buyers often assume that a property lingering on the market has hidden flaws or is overpriced, leading them to look elsewhere without giving your property a second glance.
2. Stale Listing Perception
A property with a high days-on-market (DOM) value can become a “stale” listing. Buyers and agents, alike, may begin to overlook it, assuming it’s no longer a viable option. This reduces the pool of potential buyers and limits the property’s visibility as time progresses.
3. Increased Holding Costs
Longer market times mean increased expenses for the seller. These costs can include property taxes, insurance, maintenance, and potential mortgage payments. The longer a property sits, the more these costs accumulate, eroding potential profits.
Don’t Let Your Property Sit in the Shadows – List With Confidence!
While an emotional attachment to land is understandable, especially for legacy properties, it should not dictate pricing strategy. In the complex dynamic of land sales, prioritizing seller demands over market realities can lead to costly delays and missed opportunities. Mossy Oak Properties Land and Luxury offers a distinct advantage by providing seasoned land agents, many with over a decade of specialized experience, who deliver objective market analysis and strategically price properties for optimal sales based on their respective markets. These agents employ data-driven insights, as demonstrated by the case study’s successful appraisal, and leverage targeted marketing strategies, including professional presentation and compelling storytelling, to effectively showcase a property’s potential. In a market where prolonged exposure diminishes value, partnering with an agent who prioritizes strategic sales, market expertise, and data-driven decisions is crucial for maximizing profits and ensuring a successful transaction.
So if you’re considering a sale of your property in VA, NC, or SC, give our team a call and let them walk you through what a successful sale could look like for your property. And don’t just take our word for it; take a look at Zillow.com, Land.com, or other real estate listing websites and pay attention to the quality of the listing, prices, and most importantly, the DOM and view counts. Our listings speak for themselves.
North Carolina/South Carolina Office: (704) 658-1121 / info@landandluxury.com | Virginia Office: (540) 299-7238 / virginia@landandluxury.com