Posted by Chuck (AZ) on January 25, 2002 at 09:11:31:
“She needs to understand that it’s worth what a buyer will pay and no more”.
This applies to used cars as well… most people tend to forget it tho.
Just felt that I needed to throw that in here.
Free & clear MH? - Posted by Erik
Posted by Erik on January 25, 2002 at 01:32:06:
I have been doing sub2’s and L/O’s for the past year… however, have yet to do a mobile deal… mostly because I don’t know what the heck I’m doing. I lady called me today with a '78 Bainbridge(?)14X60 2/1 that has been totally remodeled (carpet, vinyl, windows, plumbing, electric, etc.) The lot rent is $320. She owns the mobile free and clear. I gave her the Ron LeGrand trick and asked if I paid all cash and closed fast what was the least she would accept. The lowest I could get her to say over the phone was $13000. I think she is asking too much. However, I have no idea how to value a MH. From what I see in the archives you need to get into a “lonnie” for under $5000. What are my options here? How should I determine what to offer her? What documents do I need? If someone would be willing to kind of get me oriented on these deals it would be greatly appreciated. Oh, I am meeting with her tomorrow to look at the place. What kind of agreement should I take with me in case she wants to do something right away? She did say she needed to sell fast.
What is your market like? - Posted by GL(ON)
Posted by GL(ON) on January 25, 2002 at 11:21:12:
What are similar homes going for in your area? In my area one like that would be worth $45,000 in a park, less than $5000 out of a park.
That is not a misprint. There are only 2 MH parks in my county and there will never be another one. It is also illegal to put a MH anywhere besides a MH park. Therefore a MH on a park site is worth a premium price.
I point this out so you will know how much local conditions affect values. You need to do more homework.
Having said that, I can’t believe you could buy the place at that price and make money. Also there must be way better deals around.
Re: Free & clear MH? - Posted by lyal
Posted by lyal on January 25, 2002 at 07:50:47:
Way too much!! In real nice shape, worth about 2 - 3K in my market (wholesale price of course). Ask her how she came up with the price. Probably the amount she needs for a down payment on a condo or some-such. She needs to understand that it’s worth what a buyer will pay and no more. Remind her you’ll pay cash and leave you number. Maybe she’ll call back in a few weeks.
All the best, Lyal
Re: Free & clear MH? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on January 25, 2002 at 06:34:19:
In my area for that price, I could buy a larger mid-90’s repo and have $4k to $5k left over after a thorough rehab. Pass, unless you can get her to carry…even then, I wouldn’t go for it, though Karl Kleiner or Jacque(WA) have been known to acquire homes on terms. I just cannot imagine paying 13k for a home, unless it’s a newer doublewide.
John Hyre