Posted by Dr. Craig Whisler CA on April 15, 2002 at 21:42:19:
Nice to know someone reads this stuff more carefully than I write it. I didn’t notice it until after it was already posted. Then it was too late to hide my ignorance. Thanks for bringing this to my (lack of) attention.
Tim send me your number and I’ll fax you a Big Mac. :~)
Regards, doc
How to avoid naming a price… - Posted by mk
Posted by mk on April 15, 2002 at 13:02:36:
Hi
I am a newbie. Reading lonnie books. Already placed an ad in one the the thrify classfieds. I have interesting question.
According to Lonnie and other experts…I should be a good listener and let the seller name the price.
Once the seller names his price say 13K for a MH. I intend to buy for ~3K only. I tell him that the price is way too high for me.
Then now the seller wants to know how much I can I pay for the MH. I try to avoid the answer…But since he has named is price he expects me to name a price…
So how do we avoid naming a price. OR you guys think I should say 3K especially when the seller is insisting.
I would think that seller might throw me out of his house if I had said 3K (LOL)
How do the pros handle the situation. The last guy I met he was on my tail to get a price out of me. Man!! I had a tough time (LOL) and belive me I never named a price after the seller’s 45 minute effort. Dont know if I was trying to be true Lonnie fan or I was just trying to avoid being thrown out of that house by saying 3 K.
Help me guys.
Happy investing
MK
Re: How to avoid naming a price… - Posted by Chuck-NY
Posted by Chuck-NY on April 16, 2002 at 19:50:57:
One thing I have said is: “I would rather have you name the price because you are the one who has to be happy with the final sale price.”
This is very true because no one can come back on you to say you took advantage of the seller if the seller names the price.
I also use the “higher authority” way and then tell the
seller to call me if he can’t get it sold.
I had a “backwards offer” a few months ago…
they offered a 1988 14 x 70 2/1 for free…
I said I don’t do business that way…I’ll have to pay you something…I paid $200 + $50 for nearly new refrig. I have it for sale for $8,950 financed or
$4,950 cash. Had to put about $1,500 into rehab.
Well, I’m no expert BUT… - Posted by Dr. CraigWhisler CA
Posted by Dr. CraigWhisler CA on April 15, 2002 at 14:20:53:
…I did stay at a Holiday Inn last night.
Hey Mk, join the club. I think there are times when you CAN just name a price but I also think this kind of begs the question.
If you delay too long in nameing a price you lose creditibility with the seller. He will think you are not really a player. Sometimes I approach this dilemma by asking the seller if they mind if I make a profit off their mobile. If they say no I leave, and don’t waste any more of my valuable time. If they say yes I explain that I am kind of like a store. I buy my inventory for cash at a wholesale price that allows me to mark it up and make a profit upon resale. I say that just like a store I have overhead expenses such as space rent, advertizing, repairs etc. To this amount must be added a reasonable profit for my time and the investment of my money. I then say that if the seller can sell for more than my offer, then go ahead and I will be happy for them. If they can’t, then just call me back WHEN you realize that you can’t get your asking price and we will talk.
Remember your best deals will often come when the seller is under intense financial pressure. This usually occurs when the mobile is vacant and he is groaning under the weight of paying the space rent or facing the possibility of losing the mobile to the park in a lein sale.
A good mobile home deal is like a piece of fruit. There is a time when it is ripe to be picked. If you try to pick it too soon it will still be green and might make you sick. Timing is important. Your best deals will come when the seller is getting desperate for a quick sale or has given up on all hope of getting his full retail price and in cash. This is why park managers can be such good friends (for a fee). They often have their ears to the keyhole so to speak and will frequently be able to tip you off when it is time to go in for the kill. I know this sound a little mercenary, but that is life in the poor lane. Timing and your friendship with the PM are critical. You just can’t do EVERY deal and if you try you’ll probably go bust on your first deal. MK, if it is necessary just make your offer and go on to your next deal.
One of the greatest buyers who ever lived is Jimmy Napier. He always said “he who mentions price first loses”. I have however found that there are times when the first buyer who mentions ANY price gets an immediate yes and buys it right on the spot for CHEAP. This is bringing home the bacon or other kosher product at its best. Some people really are in a hurry to sell. You must act quickly in these cases. This cuts out all of the slow price mentioners. Jimmy also says remain silent for a long time even if the seller doesn’t say anything. I guess the idea is that the silence will make the seller nervious enough that he will start blabbing. If that happen just keep silent and just let him spill his guts. Try to learn why he is selling and most importantly you want to learn if he has a TIME DEALINE, because if he says so, he will be inadvertently telling you when he will be most desperate and motivated to sell at YOUR PRICE. If you like to monkey around a little then, ALWAYS try to learn if the seller has the monkey of time pressure on his back.
You need to play this by ear. No I didn’t say you need to have big ears (but it helps).
Regards, doc
Motivated Seller? - Posted by Tony-VA
Posted by Tony-VA on April 16, 2002 at 08:54:35:
A couple of things jump out here and a suggestion or two might go a long way.
For starters you have encountered someone off the bat who may not be motivated or showing signs of it. For what it is worth, most Seller will not be so strict.
Chances are that “Price” was an area of concern for you to begin with. You may have been wondering, “what do I do if he hammers me to name a price?” I have found that we unintentionally lead a path to our weakness (or concern) when negotiating. It is like giving a speech. If there is some part of the speech that bothers you, you invariably stumble when you get to it.
Negotiating is a learned behavior. Lonnie does a great job of breaking down mobile home negotiations for us.
He is a big fan of Roger Dawson, and with good reason. Dawson’s material is outstanding. In my opinion most negotiating courses say the same thing but for me, it was his presentation that made the “gambits” easy to adapt.
Negotiating skills can spoil over time if not used. It is good to refresh by reading his book or listenting to Roger’s tape course. They will give you an arsenal of negotiating tactics to handle people like this Seller.
One approach could easily have worked in your situation would have been the use of “higher authority”. This is the tactic I use most. When he hit you with the “what will you pay” question, your response (among many valid ones) could have been, “well I would have to check with the investors we work with to see how much they might go with for a home like this. But in fairness to you, let me ask you this, what would be the best, All-Cash-Price you could give us if we paid cash today?” Then close mouth and wait.
Subsequent responses such as the “Flinch” and the “walk-away” technique will follow nicely. All of this and more are discussed in Roger’s material.
Best Wishes,
Tony-VA
NO! Get out of my store! - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on April 15, 2002 at 20:11:18:
Doc, Maybe it is just me and I had a long day, but isn’t this supposed to be reversed?
Excellent, informative post. Thanks. (nt) - Posted by RobertR
Posted by RobertR on April 15, 2002 at 18:54:16:
nt
Excellent post Tony, Newbees check this out!(NT) - Posted by ScottS(NC)
Posted by ScottS(NC) on April 16, 2002 at 10:38:53: