Breaking Down Your Cash Offer: How We Figure the Number

One of the first questions we hear from landowners is, “How did you come up with that number?” It’s a fair question. You should never accept an offer you don’t understand.

There’s no secret formula, and the number isn’t pulled out of the air. Here’s exactly how we figure an offer on Tennessee land.

It comes down to two questions: What could this land realistically sell for, and what will it take to get it there? What you paid or what you owe matter to you, but they don’t set what the land is worth on the market.

Step 1: What Similar Land Has Actually Sold For

We start with recent sold prices of land near yours that’s about the same size and has similar features, like road frontage, power, and how flat or steep it is. We use sold prices, not asking prices. Anyone can ask any price. What matters is what buyers actually paid.

Your tax bill isn’t a good guide. In Tennessee, the county’s appraised value is often years old, and the assessed value is only a percentage of it, as the Tennessee Comptroller explains. Online estimates are often off for land too.

Step 2: What Makes Your Land Different

Two pieces of land that look the same on a map can be worth very different amounts. These things can raise or lower the value:

• Road access. Is there legal access from a public road? See No Legal Access to Your Land? You Can Still Sell It.
• Septic. Will the soil pass Tennessee’s septic requirements so someone can build?
• Utilities. Is power nearby? Is there public water?
• The lay of the land. Is it steep, rocky, wooded, or in a flood zone?
• Title. Is the deed clean and in the right name? See Mistakes on Your Deed? How Your Tennessee Land Can Still Be Sold.
• Back taxes. Anything owed gets paid at closing. See Behind on Property Taxes? You Can Still Sell Your Tennessee Land.
• Greenbelt. If the land is in greenbelt, rollback taxes may come due later.
• Mineral rights. Were they sold off years ago? See Who Owns What Under Your Land? Mineral Rights and Selling in Tennessee.

Problems like these don’t stop a sale. They affect the price, and we’ll tell you exactly how.

Step 3: What It Takes to Improve the Land

After we buy your land, we often put work into it before it’s ready for its next use. That can include surveys, clearing, bringing in utilities, dividing larger parcels, or placing a home. We also carry property taxes while we own it, closing costs, and sometimes legal work to clear up title problems. Some projects take months, or more than a year. All that gets figured in.

Finally, we leave room for a fair profit so we can keep our doors open. We don’t hide that, and we don’t play games with the number.

Why Would Anyone Take Less Than Full Price?

A cash offer will be lower than what your land might eventually sell for on the open market. For many owners, what they get in return is worth the difference:

• No agent commission. On land, that can be 6% or more.
• No waiting. Listed land can sit for months or years.
• No fixing problems first. We take the land as it is.
• No bank loan to fall through. Banks are picky about land.
• A set closing date. You know when you’ll be paid.

For some owners that trade is worth it. For others it isn’t, and that’s okay. If your land is easy to sell and you’re in no hurry, listing it may get you more. I’m a licensed real estate agent in Tennessee, and our team will be straight with you about which way makes more sense for your situation.

What If Something Turns Up During Due Diligence?

After you accept an offer, we do our homework on the land. That can include a survey, a soil test, and checking county records. Sometimes this turns up a problem nobody knew about, like wetlands, a failed perc test, or an access issue. When that happens, we’ll show you exactly what we found and explain how it affects the price. If the new number doesn’t work for you, you’re free to say no.

Watch Out for Offers That Seem Too Good

Be careful with a buyer who offers a high price but can’t explain it, then cuts it weeks later with no real reason once you feel stuck. An honest buyer can walk you through their number before you sign. Our owner spent his career in law enforcement, and he wrote a short guide on spotting dishonest buyers and land scams: How to Protect Your Land From Scams: A Retired Law Enforcement Officer’s Guide for Tennessee Landowners

About Copco Properties

Copco Properties is Owned and Operated by a Retired Law Enforcement Officer and a Military Veteran. In law enforcement, when someone called with a problem, the job was to show up, listen, get the facts, and help solve it. We bring that same approach to land. Back taxes, inherited property, title problems, no road access: these are the situations we work through every day. Brent, our military veteran, served at Fort Campbell and brings the same commitment to doing the job right and seeing it through.

• No commissions and no hidden fees.
• Every sale closes at a reputable title company.
• We’re up front about everything, and we’ll explain every number and every step in plain English.
• No pressure. Take all the time you need.

If you own land in Tennessee, call us at 615-610-3303 or fill out the short form on our website. We’ll research your property and give you a free, no-obligation cash offer. And if you want us to walk you through how we got the number, just ask. We will.