Posted by Karen - TX on February 28, 2002 at 17:24:32:
I knew some of the Brokers were using unique angles to garner greater profits, but wasn’t sure how they were doing it. (Now past conversations I have had with some of these Characters makes sense!)
Broker Price Dillema - Posted by Dan
Posted by Dan on February 28, 2002 at 06:39:54:
I’m trying to buy a repo doublewide and have called two brokers about cost. Its a double wide 28x48 1997 Holly and one broker says $14000, the other $22000. What gives, and how do I find out what bank owns it and what is the true balance owed???
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.
Best Wishes,
Tony-VA
Re: Broker Price Dillema - Posted by Sean(WA)
Posted by Sean(WA) on February 28, 2002 at 16:34:29:
The reason for the two different prices is that broker/dealers can sell the home for the listed price that the finance company has given and earn a straight commission,usually 10 or 15 percent or they can qoute any price that they see fit and hope to snag a potential buyer (in this case you).
Once you write up the deal they pay the wholesale price they negotiated from the lender and then sell to you for a marked up price.
Example: Price listed at $25,000.00 throught Conseco, dealer shows you the home and puts you in contact with the lender and recieves $2,500.00 commission for helping them sell the home.
Second scenario is: Dealer shows you the home for $33,000.00 but in the meantime has negotiated a cashout wholesale price of $19,000.00 from the lender thereby pocketing $14,000.00 cash from the deal.After you write up the deal they send a check to the lender for the title and then get you conventional financing.
The reason why not every dealer does this and the reason why you are recieving different pricing is that not every dealer has the ability to put up the cash and therefore has to settle for just the commission.So that is probably the reasons for the different numbers that you are hearing about. My advice would be to go directly to the lender and bypass both of the dealers altogether. Any time there is a middleman he is taking some of your profits you can guarentee it. Find out who the lender is from talking to the park manager and then look up their site online.
Best Regards,
Sean B