No sense spinning your wheels unless you’re a… - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on September 17, 2003 at 15:02:44:
Beore you can negotiate price you need to know value.
Value is dependent on location.
$8k would be a great price here in Southern California. It may be overpriced in Armpit, Arkansas. People from other states will find it difficult to know its value in your neck of the woods. You need to check out the retail values of several dozen other comparable mobile homes for sale in your area, to learn what it is worth. Then and only then can you know how much you can resell it for with terms. Then and only then will you know how much to offer. As a general guide you should be able to double your money if you buy for cash and sell on terms.
I think it being a doublewide would be a great bonus if it doesn’t have to be moved. I am assuming that is the case.
One more thing affects your buying decision, even more than price. Will the park manager let you play in his playground? If he doesn’t want you buying and selling in his park he will likely just not approve any buyers you bring to him. Meanwhile you could be paying space rent for a mean while.
Is the mobile occupied by the seller. If so, waiting may take a long time. If it is vacant, the space rent is eating him up like an aligator at a Sunday barbeque. Just call him back about once a month, the day before space rent is due again. He will get the idea. I wouldn’t call too often (after you have finished your initial negotiations and have failed to make a deal) because that makes you seem anxious and weakens your bargaining position.
If the seller is planning to rehab, you need to find out why. Sometimes it means they hope to sell for full retail price. In that case you many not have much luck negotiating with them. They may not be very motivated to lower the price. If on the other hand they are planning the rehab because they think it is necessary for them to be able to sell it, then I would ask for a 50% discount, if I do the repairs. That assumes that you can do the repairs for about 1/4 of the discount or so. It isn’t a hard and fast rule.
I would start negotiating at about 3-4k and not raise my price much, if any at all. Most sellers mistakenly believe, at first, that they will be able to sell at retail value, for all cash. Time, and YOU will teach them that that just isn’t going to happen.
Another factor you might want to consider is how many vacancies there are in that park, and how desireable that park is. It will be easier to resell in a nice all age park, that, accepts children and has few vacancies. If it is in a bad or age restricted park and/or there are many vacancies, then use those points as a bargaining point in your negotiations.
It sounds like you may have a good deal going, depending on how your negotiations proceed.
There are many posts in the archives offering great tips on how to negotiate mobile home deals.
Good luck and keep us posted on your progress. We may be able to offer more tips as you go along.