land listing way much above "market" price

[Patryk]

Hi,

I am wondering for a longer time, does anyone actually buy land which is highly overpriced? Facebook marketplace seems ridiculous from time to time, nobody sane would pay 15-20k php per sqm big cut ( about 2000m). In my opinion, it is a time waste to even try to sell it. More than this, sometimes you can find 2 listings of the same land when the seller decided to drop the price (let's say drop down from 2.5m to 1.8m per lot). 

I was thinking that it may be the same thinking as some taxi drivers who would like to overcharge you instead of paying a taximeter, most people will refuse to do this, but from time to time somebody will just take it. Is it same with land? does anybody would buy land for 15k when nearby there is similar place for 5k or less? 

I am looking especially for cliff lot in central Visayas, I would expect to not exceed 2k per sqm with about 2000 sqm cut, do you have any feeling about this price? 
I don't need lot like right now, but I would like to have general overview how much I could negotiate for cash purchase, what could be "market" price?

[Old55]

You've put your finger on one of the more charming customs in Philippines.

Common sense has no effect on real estate practices in most cases. To know if a land title is true would be a real worry as well as many other issues. One sure way to be murdered is becoming engaged in a land dispute.

[Possum]

One of my favorite things to ask these FB sellers is if they are the agent or owner. If agent I ask for the name as listed on the license so I can verify. That's usually the end of that. I never buy unless I talk to the owner first anyway.

In some cases the owner has no real need or interest in selling the land but the agent will offer to sell it for some ridiculous price so the owner agrees it can be advertised. Real estate agent laws like most laws here are not enforced so great caution is in order. Don't believe anything you hear and only half of what you see

[Snowy79]

Also take into consideration many price land on what it could be worth in the future.  I've seen many areas that were going to be the next Boracay or an area was eyed up for an International Airport and overnight the land prices go sky high. Three years later there's 5 more next Boracays and more potential airports. 

If I was starting out I would find a titled lot in an area that is already on the tourist scene with its airport, hospital and Mall already in place.  That way you can live there and enjoy the amenities or rent out whatever you build quite easily. 

If you buy in your 60s speculating in 10yrs time a massive profit you may find you are now in your 70s, the area never took off and due to health issues you are desperate to sell up so sell at a loss. 

[Kingpin]

1 hour ago, Greglm said:

One of my favorite things to ask these FB sellers is if they are the agent or owner. If agent I ask for the name as listed on the license so I can verify. That's usually the end of that. I never buy unless I talk to the owner first anyway.

Yep, anyone can list an ad, and they're all afraid that anyone contacting them is just another "agent" looking to steal their listing,  so they will rarely if ever give any info on the owner, the address, etc

2 hours ago, Patryk said:

Facebook marketplace seems ridiculous from time to time

It's a business for most of them, owners buy low just to re-sell high for profit, even if it mean waiting for years. Or they buy low, build a cheap house and list it for sale at triple the price.

Zonal values here - https://www.bir.gov.ph/index.php/zonal-values.html - but generally speaking good land deals are rare, and snatched up quickly, so if it's available it means nobody else wants it. The key is being first, which means daily research. And after all that work, maybe one day, if you're really lucky, you can pay for a lot that you'll never own in your own name.

 

[Dave Hounddriver]

3 hours ago, Patryk said:

I am wondering for a longer time, does anyone actually buy land which is highly overpriced?

Anecdotally, my wife's family live on a small 2 hectare farm that they have been renting for 30 years.  2 years ago they went to the owner to say they are interested in buying the land outright, as the owner had suggested he wanted to retire..  The owner said he would sell for 1 Million Pesos.  They said no.

Fast forward 2 years.  2 months ago the owner of that land came to my wife's family and said he needed to sell and they could have the land for 250k pesos of fast cash.  They bought.

This simply illustrates the dream of selling vs the reality of selling.  There is always someone who will overpay and they all hope to find him.

[Old55]

Snowy makes a great point. Buying a lot in a developed community or the like is a much safer bet although may come at a premium price. 

Whatever you end up doing wishing you like finding a great place they can be found as many members have done so.

I was being kinda negative as our family is going through another land theft. Family stealing land divided between each other after a death. Very common and another reason to beware. 

[JJReyes]

Philippine landowners expect buyers to ask for a huge discount -- maybe 50% but often 25%.  If you ask 100K and the offer is 25K, there is a lot of wiggle room.  The asking price is not the purchase price.  In the United States, the offering price is closer to market value.  The reason is, on the day of recordation, the purchase price becomes public information. So you know what similar properties in the area sold for.  Realtors subscribe to the Multiple Listing Service which gives them all kinds of information, including how many days the property has been on the market or if there are changes in the offering price.  

[BrettGC]

10 hours ago, Old55 said:

One sure way to be murdered is becoming engaged in a land dispute.

The applies to foreigners as well as Filipinos.  

As to your family land dispute Old55, I've lost count of the times I've heard of land being left to one member of the family and all of a sudden a dozen cousins/uncles etc pop up out of nowhere also trying to make claim to the land.  Clear title can be hard to prove here I've discovered. 

Also there's the issue of where Marcos Sr gifted land to tenant farmers in the 70's where no one actually has a title deed.  It was the 1972 land reform program.  It's a lot more common problem than most people realise as many of the original owners were never actually paid so title transfer was never completed.  

[Mike J]

7 hours ago, Kingpin said:

And after all that work, maybe one day, if you're really lucky, you can pay for a lot that you'll never own in your own name.

Yep.