There are no dumb questions… - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on September 16, 2003 at 15:18:51:
…only dumb mistakes.
I almost always offer about 1/3 to 1/2 less than the asking price to start and negotiate from there. I would start at about $120k, and ask for seller financing. You seem to only have a retail price deal, at the present time. Most sellers ask a little more than they expect to get with the thought that they can reduce the price during negotiation if need be. I’d be surprised if you couldn’t get it for $140K cash or $160k + if seller financed with small down.
Be careful about tieing it up now. Wait until you are done negotiating the price and terms. Once you get it tied up at a certain price you will find it hard or impossible to negotiate the price downward later.
Tying the deal up with a contract is just like doing it with an option. All the terms must be included therin, especially, the seller financing, if any.
Once you have it negotiated into the best deal you can get, if it makes sense, THEN, tie it up quickly.
Try to give yourself as long an escrow period as possible such as 3-6 months, and at least one escape clause, such as, subject to the appproval of your partner.
Why not make a call to some of the mobile home park specialists such as Ray Alcorn and Ernest Tew. I bet an hour talking to either one of them will save you $20k or more, one way or another.
There are no dumb questions only dumb mistakes.