There are hundreds of more or less similar land listings in the city. Their average price is $x/m2.
To make this land unique, owner worked on the land and made it look pretty. It is no longer a pure investment decision for the buyer. It is has recreational value.
Owner wants to sell at $3x/m2.
Can marketing make that happen?
Marketing can mean showing this listing to 1M people like Ryan Serhant does on Youtube.
Marketing does not increase prices in itself. It can only help reach more potential customers. So it really depends on whether there’s someone out there willing to pay the increased price and if the chosen marketing method is effective in reaching those people.
what would be the cheapest way to figure out if such people exist?
Check sales listings for any sold property at that price?
sales records are private here and people usually don’t want to share that info
i could call 100 realtors and ask if they sold any “pretty” land, and if one of them sold such land, i could try to learn its sales price
maybe i could use AI to “modify” this land. and use that as marketing material and then do surveys to at least come up with a worst case number?
thoughts?
Talk to a specialist estate agent. Trawl though sales listings.
I imagine the price difference will be less than the cost of improvements though.
i can use workaway and such.
i met a volunteer who offered to volunteer for this project. she studied agriculture something in uni and has a farming license.
cost of hosting 10-15 volunteers would be like $1k/mo here.
but i guess it wouldn’t be smart to rely on that. i don’t even know what i’d want them to do at this point tbh
Why would they volunteer to do up some land for you to sell for a profit though?
Seems unethical if your not telling them your plan.
I told her my plans but I also found the concept unbelievable at first. Free labor? But people volunteer to experience different cultures or different ways of living and such. I met many volunteers
But that’s besides the point
Improved land is worth more than unimproved land.
You said yourself it has recreational value.
but that is my assumption. maybe it is not worth $2x/m2. maybe it is only worth $0.5x/m2
You said yourself the going rate is $x/m2 for unimproved land, so improved land should be worth more.
Are you going to get 3 times the current price of the land consistently doing this? Probably not.
Can it increase the price a little bit? Yes.
A lot of it will come down to who can buy the land, if it’s just random $10k properties in the woods, you may be able to land some random customers who will pay $30k because you brought it to their attention.
If it’s $200k properties you’re trying to flip for $600k, it’s very unlikely to ever happen.
if it’s just random $10k properties,
For my case, that number is $5k
you may be able to land some random customers
I’d need 50 customers at that price
in the woods
My location is in the city.
Also, climate is dry so there is no such thing as “in the woods” here. “In the woods” areas are valuable here (at least emotionally). People drive for 2 hours to go to such areas here for picnic
The problem IMO is differentiating the land from alternatives. Otherwise people wouldn’t pay 3x or even 2x probably. Why would they?
I’m going to go out on a limb here and say you’re not in North America. I don’t think there’s anywhere you can buy land for $5k in a city around here. This changes things unfortunately,
For smaller values of land you want it to be more of an impulse purchase rather than logical one.
If you’re in a country where $15k is a substantial sum of money, then this simply won’t work.
If you want this to work you need customers who won’t even bother comparing it to other properties, you need to make it easy for them to see way more than $15k of value for their life (camping, relaxing, sporting, etc.) and make it REALLY easy for them to buy.
Scam or not, you should at the Timeshare industry as an example of how this is normally done.
“Can marketing work to increase sales price of land?”
Let me introduce you to this cute little place called Greenland. Weather is beautiful year round.
That’s less “marketing” than location. Location, location, location.
It’s been important since the beginning of flight as a waypoint, and is far enough north to provide security coverage for the Atlantic.
I know this isn’t the point of your question, but in many states recreational land gets its own zoning classification. An the value of recreational lots is much more situational than other types - often worth less than other zoning because its harder to sell.
this one is agricultural land
i wish it had zoning :)
