Offers and negotiating with sellers

[Hiethem B.]

I located a mobile that the seller has listed for $10,000. 3 and 1, built in the 1970's, space rent will be raised to $680 upon the sale of the home. $500-$700 is pretty average for the Cali market. The seller has outgrown the home and has purchased a home that is currently in escrow. I talked to him yesterday, he said he had a couple of people take a look at the home, but nothing solid.

I know I need to build rapport with the seller and Lonnie talks about using the Squirrel dog technique, but I would like to know
what are some techniques the rest of you are using to present your offers and get the price you want? Do you offer a cash price and an owner finance offer? Any negotiation tips and techniques that you use would be greatly appreciated.

[Jim Johnson]

Originally posted by Hiethem B.:

The Park is located in the San Gabriel Valley

I need to find out the current rent and talk to the Park manager and ask them if they will even let me do this type of transaction in the park. At that point I can ask for a rent concession of some sort. Its an older home, but seems to be in good condition.

I agree with the multiple offer strategy

I know Jim Johnson recommends offering what the market will allow you to sell on payments.

Local apartments range from 850-995 for a studio,1000-1200 for a 1 bedroom, 1250-1400 for a 2 bedroom and 1400-1800 for a 3 bedroom.

I think a can be very competitive if I can sell the home on payments of $375. Buyers total out of pocket would be $1,055. After the note is paid off in 18 months only $680, until another lot rent increase.

So, I think my offer would be $375 x 18 - 680 = $6,070.

I was wondering how others have gone about presenting an offer like this to a seller. Are you just givng them offer? Do you have a strategy for the presentation?

Hey Will, we're neighbors!! Thanks for your reply!

I walk in with cash... knowing what I will pay well before I enter the door. If they take the deal, I give them some up front, and the rest on move out and the home being broom clean. If the home is good to go now, I walk in with cash. Be sure you have a tax certification that is current and shows the taxes paid through at least the last 30 days or so... Check that document against the title... also- use a purchase agreement so god forbid, someone gets hit by a bus... everyone knows whats up...