One of the most common questions we receive is “How do you determine the cash offer amount for my land?” We decided to write a blog post explaining our process and how we come up with the cash offer for your land.
The first thing we do when we are reviewing a piece of land is check with the county property assessor and see what information they have about this particular piece of land. If we already have the parcel number, the county can quickly identify the land and give us the information we need. If we only have the owner’s name then it will take a few more steps to properly identify the actual land we are looking for.
The next step is to contact the county tax collector and determine how much, if any, back property taxes are owed on your land. Since we will be assuming this unpaid tax and will have to pay it later, it will have a significant impact on our cash offer for your piece of land.
We will also call the county zoning and planning department to determine the official zoning of the land, as this will also have an impact on our maximum cash offer price for your land. We are primarily interested in vacant land that has been approved for residential housing. But, we are always interested in other types of land and will be happy to review any offer requests.
Some of these steps with the county can be done quickly online, while sometimes it requires a phone call or even a request through traditional mail. Depending on the county and how easy it is to obtain the information we need, we can typically send back an offer to you within 48 hours of receiving a request for a cash offer for your vacant land.
Once we have all of the information we need about your land from the various county agencies, we will determine an approximate market value of the land. This will include looking at comparable recent sales in the area, current listings, as well as the number of listings, and other market factors. Unfortunately, vacant land isn’t bought and sold as regularly as houses so it takes quite a bit of research and experience to determine the approximate market value of a piece of vacant land.
Finally, we will consider all information and related market data about your land and determine our cash offer. While some people will be disappointed with our offer price, they must remember that we will be paying all unpaid property taxes as well as all recording fees and other costs associated with the closing.
Hopefully, all of this information is helpful, please visit our FAQ page if you have other questions.
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