Re: what I do - Posted by SL-VA
Posted by SL-VA on January 17, 2000 at 23:59:04:
From Lonnie’s books, it seems that he does not name the price; rather, he “guides” the seller to lower the price until it hits his target price.
When the seller names a price that’s higher than my target, I’d list reasons why the mh would make it difficult for me to sell - such as the mh is too old and too many things need repairing - and say that the last price isn’t worth the risk. I would then remind the seller of the advantages of selling me the mh - such as cash deal and quick close. Lastly, I pop Lonnie’s favorite question, “What’s the best offer you can give me?”
If the seller still refuses to lower the price, I’d then walk away, but leaving the door open for future negotiation.
The only time that I named the price was when the price was already below my target price and I simply wanted to see if I could lower it even more. In that case, the lowest price the seller offered was $900, which was below my target, and I wanted to see if I could save another $100, which I did. This turns out to be my best deal so far: I paid $800 to purchase the mh, I sold it with $1000 down and 18 payments of $300. Since I’ve already recovered my original investment with the downpayment, I can’t even calculate the rate of return - you can’t divine by zero.
Just curious to hear reasons why Dirk and others would name the price and their opinions on that approach, which is different from Lonnie’s.