Posted by Tom Nagle on August 31, 1999 at 10:37:20:
nt
Lonnie deal NEGOTIATION - Posted by SL-VA
Posted by SL-VA on August 30, 1999 at 23:15:55:
Lonnie teaches in his books that we should NOT name the price of which we’re willing to buy or sell.
What if we’re looking to buy a MH and the seller asks us, “How much are you willing to pay?” or “Name your price”? How would you respond without naming a price?
Thanks a bunch.
SL-VA
Re: Lonnie deal NEGOTIATION - Posted by Lonnie
Posted by Lonnie on August 31, 1999 at 08:01:18:
Hi SL,
When looking at any MH to buy, you should already have a target purchase price in mind, but only in your mind. But don?t let the seller know what that figure is because you want the seller to name it. If they try to pin me down to a price, I change the subject. "How long has it been for sale? Why are they selling? Have they found anyone wanting to buy, but didn?t have money? What happens if they have to move and no buyer? When do they have to move? What?s the best offer they?ve had, if any? How did they arrive at their asking price? Do they plan on fixing that bad place in the floor, or repair the broken windows etc?
Then I start commenting on how hard it is to sell old MH?s that need repairs, how hard it is to find anyone with money, how expensive it is to advertise and find a buyer, paying lot rent if it?s not sold etc. They already know this, but they need to be reminded. Then I add that the only way I can sell is to offer financing, and that?s always risky because there?s lots of deadbeats looking for a sucker. And it doesn?t hurt to tell about the last home you had to repo after the buyers trashed it. Ask them why they don?t rent, or finance the sale. Then listen to the answers.
After I give them a trip down horror trail, I say that I might be interested if the price is right, but I have to make a reasonable profit. Then I might add, "I don?t like bargaining and horse trading and wasting your time and mine, so why not just give me your best cash price and if it?s reasonable, I could take it off your hands right now.
If they still refuse to name a price, or if the price is too high, just tell them you can?t make the numbers work. Leave your name and phone number and tell them to call if they don?t find a buyer. And never get emotional about any deal. It?s a game of common sense and numbers. If the numbers don?t work, walk away and look for another one. I don?t know the times I?ve had the seller tell me “you can easily sell this home for $$$$$”. Then I ask “if I can sell and make such a profit, why can?t you?”
Hope this helps,
Lonnie
Re: Lonnie deal NEGOTIATION - Posted by David Alexander
Posted by David Alexander on August 31, 1999 at 02:06:05:
Well, let’s see I’ve got about ten bucks in my pocket would that do it? Really, this your home I wouldn’t even begin to know what’s fair, tell me what your thinkin? (then destroy all urges to utter another word, until he names a number, even if he says something else without saying a number, stay silent)
That should get it started.
David Alexander
Re: Lonnie deal NEGOTIATION - Posted by SL-VA
Posted by SL-VA on August 31, 1999 at 18:54:13:
Thanks a bunch, Lonnie. Great answer. I’m gonna start getting serious in looking for MH deals.
Another entry for my ‘Lonnie Notebook’ !! (nt) - Posted by SusanL.–FL
Posted by SusanL.–FL on August 31, 1999 at 15:17:46:
nt.