Posted by Tony-VA on January 17, 2000 at 17:55:44:
I too am a big fan of Roger Dawson. I learned a great deal from his book. His tape course retails for about $60 but you will find that you can buy it through online auctions for about $10. The course is a good reinforcement for the book but should not be a substitute. The book really is very good.
Tony-VA
Mobile Home. Name Your Price. - Posted by Robert Biddle
Posted by Robert Biddle on January 17, 2000 at 13:25:55:
Ok. From the responses to my post earlier it looks like there are some people that think that it’s a good idea to go ahead and make offers and name prices when negotiating the purchase of a used mobile home. This obviously goes in direct contrast to what Lonnie Scruggs says about “Let the seller name the price.”
I’m sure Lonnie’s way is the best when dealing with highly motivated sellers.
But what about a home where you think you might be able to buy it at a good price but the seller isn’t quite motivated enough to name a price? Is it a good idea to then make an offer and name a price?
What are all you out there in the MH business doing? Are you in the practice of making offers and naming prices? Or are you skipping the not quite so motivated sellers and moving onto the highly motivated ones that will name a lower price without you making an offer?
Just curious what others are doing.
Thanks,
Rob
Re: Mobile Home. Name Your Price. - Posted by MarkF (NorthernCA)
Posted by MarkF (NorthernCA) on January 18, 2000 at 02:41:40:
Hi Robert…
Looks like we got some good suggestions to your question. I especially like Dirk’s putting cash on the table…hard to resist that…
And the other suggestion of a cashiers check made out in the amount you want to offer…good one also. Thanks to everyone who responded.
Mark
what I do - Posted by Dirk Roach
Posted by Dirk Roach on January 17, 2000 at 14:30:12:
Hi Robert,
Personally I play by the rule
“He who names a number first loses”
I never am first to name a price. And I understand because when you are not as experienced it can be hard to get them to name a price. I would suggest picking up a few of the Roger Dawson Books about negotiating. They are well worth and you will not be sorry.
When I go into a deal, I do have a target price in mind for the home.
I often times simply ask what they want for the home.
“Well we would like to get $7k, we just three years ago put this into it and we fixed that blah, blah, blah”
“Well that’s more than I could spend right now. I could do this…”
Then I pull out $2500 dollars IN CASH in fifty dollar bills. The ones with the big faces on them. And then I sit it on the table and don’t say a word. Silence can speak volumes if used effectivly.
Oh I also often times have my contract and pen sitting there too.
This method works wonders for me.
Good Luck, hope that helps,
Dirk
Thanks Everyone! - Posted by Robert Biddle
Posted by Robert Biddle on January 18, 2000 at 15:59:56:
Big help. Got some good ideas. And I can’t wait to read that book. My negotiation skills need some work.
Rob
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.
Re: what I do - Posted by Jacob
Posted by Jacob on January 17, 2000 at 15:28:40:
Robert,
Dirk is absolutely right. My very favorite technique is to get a cashiers check for the amount I want to pay, and put it on the kitchen counter with contract and pen. Just like Dirk described. The power of money. I haven’t yet had a person refuse.
Good luck,
Jacob
Re: what I do - Posted by Robert Biddle
Posted by Robert Biddle on January 17, 2000 at 15:00:32:
Thanks for the advice.
I just ordered “Secrets of Power Negotiating : Inside Secrets from a Master Negotiator” From Amazon.com