Posted by Terri (MI) on August 18, 2003 at 11:20:22:
Thanks Steve (and Tony). We strayed a lot from the Lonnie basis with this one because it took us so long to get it in selling shape. Then as we put more $$ and sweat into it, our “value” went up. We’ve always approached the sell with potentials as being flexible, but I do think the high down payment has scared a few folks off.
We’ll rework the ad with the payment and a lower down and see how it goes. It was not our intention to have things go like this, but we’ve definetely learned a few things and want to get back to the “Lonnie way” which is why we got into it in the first place.
Problems selling first deal - Posted by Terri (MI)
Posted by Terri (MI) on August 18, 2003 at 09:00:37:
We bought our first cheapo back in the spring, have made all the repairs (all bad plumbing, holes in floor, sagging toilets, painted, new skirting, etc…) and have been running an ad in the papers the entire time. We bought it for $2000 and are asking $11,900, $2,000 down. The lot rent is $315.
The ad is very Lonnie: Will finance - No banks; 14x64 1981 Skyline, 3 bed, 1.5 bath, $11,900.
Also, the PM has helped us out by sending folks over. Problem is, no takers. Either they see it and aren’t interested or get to the PM and the credit check and couldn’t qualify to buy a new toilet seat on credit.
Any suggestions?
We had it at $9,900 a few weeks ago and my partner raised it to $11,900 after we got the carpet in. I feel that sent out a bad signal if folks have been following the ad in the paper. Too much down too???
Since the PM is on your side, ask him the reason the lookers gave him as to why they arn’t interested, or what problem they dont want to handle. Do this shortly after each party looks at the place, before the PM forgets what they said to him. It could be in the home or in the way the deal is put together.
This will at least show you which topic you should focus on, the house or the financing.
Re: Problems selling first deal - Posted by Greg Meade
Posted by Greg Meade on August 18, 2003 at 10:36:49:
Why not rewrite your ad to read " will finance with reasnable down a clean 1981 Skyline 3/1.5 with payments like rent and zero interest financing. figure out what you would make on interest and add a few for you to final price. The two I have done the folks were more concerned with down and payment. I try to keep terms under 36 months. What is your basis in the mobile? I try to double that if possible. good luck!
When i am slow in selling a home, i just put a nice monthly payment in the ad, and i always get more calls. The down side is that you cannot fugure on getting any more than that a month. But one time i put an ad in that said “own your own home, only $157 a month.” and i sold 3 home off that ad. Keep your head up, Briton (IN)
Re: Problems selling first deal - Posted by Steve-WA
Posted by Steve-WA on August 18, 2003 at 09:41:38:
Keep things negotiable. Downpayment requirement is a little high, IMO.
I feel people out, then perhaps tell them that we’d like to get $1000 down. If they don’t have that much, then consider lower, but raise interets / payment / term to compensate for your risk.
Keep down and payments manageable, and I think you may find more buyers.
Posted by Doug (Alabama) on August 19, 2003 at 11:30:08:
Tony’s comments are right on target. All the homes I have sold were done with the down and monthly payment only listed. The buyers didn’t see the sales price until we did the purchase agreement.
Your add needs to have a little excitement in it. I like the zero interest ads. You can also use this analogy to get your buy-sell range set. Payments of 250 per month for 3 years is $9,000. Use that as a base. Buy at 3,500-4,000 and sell for 9,000. The down is just gravey on top of that.
Re-do the ad and you will get more calls and a buyer. Ask the PM what they need to qualify as a minimum and ask questions up front to save you some time.
Good luck,
Doug
Posted by Tony-VA/NC on August 18, 2003 at 11:03:02:
You may have approached the purchase of the mobile home as Lonnie teaches in “Deals On Wheels,” but you did not follow through.
The essence of success in these deals most often lies in our ability to sell these home based upon payments. Very, very few people ever even ask what the final sale price is on these homes. They just want to know how much down and how much per month.
Your retail type ad failed so re-work it as suggested below. Get that final sales price out of the ad. Work in the low payment figure.
To figure out that payment, decide what the going rental rate for a similar apartment is in your area, subtract out the lot rent and use that difference as the top end. I take some off of that figure so as to sell quickly.
You might even sell the home for more. Control the deal through your knowledge of the time value of money. Work the terms (payment, % rate, number of payments, down payment) so that you get what you want while allowing them to afford what they want.