selling MH for cash..request input on technique. - Posted by chris_wa

Posted by Bill K. - FL on February 16, 2000 at 12:31:57:

Chris,
When they ask the price I always come back with the classic Lonnie line "Will you be paying all cash?"
That stops them dead in their tracks 99% of the time. Then we talk terms. Most of them don’t have all the cash anyway so just assume they don’t. If it turns out they do, give them a figure slightly lower than your “Lonnie” price. (1000 off) I like the example, $7000 all fixed up, $6000 as-is, $5000 all cash. And you are right, most of them are tire kickers. The serious ones who really need a place NOW are much easier to deal with.

selling MH for cash…request input on technique. - Posted by chris_wa

Posted by chris_wa on February 16, 2000 at 12:04:04:

first, i am selling the mobile that I live in…I believe this changes the strategy somewhat. I have taken some suggestions from Tony_VA and used the higher authority route when a seller tries to “pin” me down to a price over the phone. However, i am having a hard time dodging that question with my own place without sounding like an idiot.

buyer: "how much are you asking?“
me:” well sir, we are showing the home today and would be happy to accept any offers…"
buyer:"well, can you tell me a ballpark figure?"
me:"boy, that would be tough without you having had a look at it…why don’t you come out and have a look…i can tell you that we really need to get out of here and would entertain anything reasonable…"
buyer:"so you don’t know how much you want??"
me:“well, we booked it at xxxx$$$'s but are certain we won’t get that, i sure would like to show it too you…blah blah”

anyway, i hate playing ping-pong with these folks. i think some may be tire kickers, but i also think some have cash and they want to have an idea of how much before they waste their time coming out to look. you folks have any thoughts or ideas of how this could be handled in a more effective manner??? thanks for your time…

chris_wa

“Reasonable and Negotiable” - Posted by Tony-VA

Posted by Tony-VA on February 17, 2000 at 07:52:57:

Hey Chris,

Let us not forget what Lonnie taught us. The two magic words, “Reasonable and Negotiable”. I am glad you posted this question because it reminds us all to reflect on our negotiating skills and takes us back to where the problems begin…the basics.

Buyer: "What are you asking for the home?"
You: “The price is negotiable, but if the offer is reasonable, we will work with you. Will you be paying all cash or need financing?”

From there you roll right into your typial lonnie deal.

As you mentioned, I am a big proponent of using the “higher authority” technique. You always have your wife as your higher authority that you must run offers buy. “I don’t know, my wife would never let me sell for that low, is that the best you can offer?”

This technique has worked very well for me, in slightly different versions, but can be used in many scenarios. It is not the cure all technique, but is pretty versatile.

Stick with Lonnie’s technique of “reasonable, negotiable,” especially when talking on the phone. I like the suggestion below, say “I don’t exactly know what it’s worth, come by and perhaps you can tell me.” Then when they get there and low ball you, hit them with the Higher Authority Technique or roll with the “reasonalbe, negotiable…will you be paying all cash or require financing technique.”

Get them out to meet you face to face so that you can apply your skills and close the sale. With these 3 or 4 techniques used together, you are in a substantially stronger negotiating position. Act motivated to get them to your door, but remain the reluctant seller, because you don’t have to move. (Now you have 6 techniques rolled into 1!)

Best Wishes My Friend,

Tony-VA

Thanks for your help gentlemen…I’ll work on it and keep you posted(nt) - Posted by chris_wa

Posted by chris_wa on February 16, 2000 at 21:41:44:

nt

A Couple Additional Points - Posted by Bill K. - FL

Posted by Bill K. - FL on February 16, 2000 at 15:36:13:

Chris,
I’m glad you posted your question because this is something every investor new and old must deal with and it’s probably the hardest part of the equation. Reselling the property. Hopefully this was figured out before you bought. First of all take control of the conversation. Don’t wait for them to ask you a question. You start asking them questions. 1. How soon can you move? 2. Do you have all cash or have outside financing lined up? If yes with who? 3. Will you need my help with financing? If yes, start prequalifying them. How much cash do they have and how much can they pay/month. 4. Make sure they know where the property is located early on in the conversation. Doing these things will eliminate a lot of wasted time. Your goal on each call is to find out what their timetable is, what their qualifications and needs are. You would be amazed how many people call and tell me they will need a place in three or more months. Or that they are self employed and don’t know how much money they make. Or they can’t provide previous addresses/references. Why waste time dickering with these people over price. You would be foolish to sell to them even if you could. Find out the answers to the questions you want first then talk turkey. If they refuse let them go. They are not serious anyway. Remember, you are in charge. You have what they want. You are doing them a favor.

Re: selling MH for cash…request input on technique. - Posted by Eduardo (OR)

Posted by Eduardo (OR) on February 16, 2000 at 13:15:55:

Hi chris–

The idea is to solicit an offer. From there you can negotiate. Have you ever been to an auction and seen people get carried away and bid too much for something? Happens all the time. For some people, once they have committed to the “game,” they want to “win,” e.g. acquire the item, not let somebody else get it, even if they have to pay more than they originally wanted to. “Ha ha, I got it and you didn’t.” In your situation, as in selling any real estate, you want to entice a prospective buyer to come to the property and make an offer. In order to do this, you must give them what they want (whether they know it or not). What do they want? The same thing you or any real estate buyer (including investors) wants: A MOTIVATED SELLER! When buyers call, they want to hear things that make them think, “Hey, there may be a good deal here!” So what I would suggest you do is try to sound like you’re desperate to sell. You’re motivated to get rid of this property and get on with your life. How you sound–the inflection and emotion in your voice–is probably as important as what you say. Make noises like, “I’ve got to sell this,” “I have to relocate,” “I’ll let it go cheap to the right buyer,” etc. No need to lie and say things like your getting a job transfer or a divorce or something “factual” like that if it isn’t true. Just sound fed up, in a hurry, and really motivated to sell. After you attract an offer you can counter it and try to get your original price–the buyer is “in” the game now. This is a technique professional negotiators use. I suggest you read Chester Karrass’ “Give and Take.” A great guide to negotiating strategies and techniques. Good luck! --Eduardo P.S. You can always respond to the particular question, “What are you asking?”, by saying something like, “I don’t know what it’s worth, maybe you can tell me, all I know is I have to get rid of it.” I have made a lot of money in this game by sounding like a dumb dodo (easy for me) and asking my “opponent” to help me out.