Are you a grow-er, or a show-er? Your true motive behind land sales!

Posted by admin on May 18, 2013

As a preface to this entry, we want to make a very obvious point that reading this post could be beneficial to both land buyers, and land sellers. The psychology of transaction is a mind boggling adventure, and more and more we see new factoids arising from this study or that. There are no factoids here, and this is not a scientific venture. This is tried and true theory from the trenches. For the novice realtor, to the seasoned broker, gaining or revisiting insight could be of huge value.

One of the biggest questions that one asks themselves when considering a real estate purchase is of course, where. The status quo, as obvious and cliche’ as it sounds, would answer with a resounding “Location, Location, Location!”

Of course location! Who is going to buy land, invest in land, etc. that no one cares to even set foot on?  So then,  by the traditional standards,  a parcel of land… say, an acre in the city, is always going to cost more than the same size lot out of town due to the “desirability” of said parcel.

But what or who defines desirability?

I believe firmly that desirability in land purchases is based exclusively on intent. Now, as trite as it might seem, the question “why”, can oftentimes be more important to the decision making process than asking “where.”

So then, we know so far that the motive behind the land purchase is more often the driving factor than where. Following the course of logic, we can then sub-divide (real estate joke) the purchase decision into two categories. Staying, or Going a.k.a. Growing, or Showing (which is obviously a made-up set of terms designed by the author to grab your attention, thus forcing you into reading the opinion of this blog…and it worked didn’t it.)!

Growers are the property seekers and owners who intend on holding onto the land, perhaps as a vacation spot, or maybe a place to build a custom home. Their ties to buying are almost purely emotional. They can envision themselves being there, sharing an experience or otherwise. Showers are the investors, the flippers, the individuals who envision the land bringing them revenue or prestige. They are the opportunist looking for the solid deal.  In each of the individual cases, they both share a common value, however …WHY they are buying the land. Again, the physical location of a given parcel of land, whether it be 1 acre, 5 acres, 10 acres or 100 acres…is not a good barometer to judge potential. Why the individual is looking for this particular land is the true arrow.  In fact, we will be so bold as to posit this simple, three letter word as possibly one of the most important aspects of the sales pitch next to the close! “What’s In It For Me.”

So next time you are in the middle of a land deal (or any transaction really), think about what the other person is thinking about….WHY….they are there, and watch the change in communication from selling (or being sold) to solving.

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