Re: Broker Price Dillema - Posted by Tony-VA
Posted by Tony-VA on February 28, 2002 at 10:00:26:
Buying Repo’s through Brokers may not be as clean as buying it straight from the finance company that got it back but with all the repo’s coming on the market, the Broker’s are getting more and more of the listings.
The Broker’s may vary on price based upon their hopes for commission (though the disparency you mention almost leads me to believe they were looking at different listings).
I have not purchased repo’s via Brokers but would not hesitate to approach it the same way I did when I bought them straight from the finance company.
Drive by the home and get an idea what you might pay for it Lonnie style.
The way I figure price is I don’t care what the bank was owed, that’s what got them in trouble in the first place. I will only pay what I think I can make money on (and be worth my effort).
Sometimes you can come in really low ball and snag a great deal but I would think that the Broker’s commission would make this less likely (but who knows).
Take a stab at a price. Do a little homework. Find out how much the bank owes the park (they usually get quite a few months behind in lot rent on repo’s). You will want to make sure that rent is paid before you get the home. Either calculate it into the offer price or word it in your offer (don’t let on that you know how much is owed).
Repo bids are all business, little emotion. You won’t negotiate the traditional Lonnie way. Just set a price that you are happy with and fax it off (or meet with the Broker). They may counter so take that into consideration.
Rules are the same no matter what. Make your money going into the deal or walk away.