How to negotiate nicely with seller?

Question

Hello everyone!

I'll be looking at a MH in Central NY area... in talking with the seller through email (apparently he's out of state) he keeps saying that it's worth $15k mint, and because of some water damage to the bedroom, he's kindly dropped the price down to $5k.

Did I mention it's a 1984?

I'm sure it's a nice home, I'm sure he bought it full price... but he keeps saying it's only $5k, and he brought it ALL the way down to that.

How do I kindly tell him I don't think it's worth that, without sounding rude? Especially over email (should I get his number and call before discussing prices?).... I'm new at this, so any encouragement or ideas would be helpful.

Thank you guys so much, you are all inspiration!

~Skye

Loc R. · Answer

Just to follow up, today is the 1st of the month and he probably has another lot rent due.

You can call him today and tell him for another X off the sales price, you'll take care of April's lot rent.

Ali Samana · Answer

some very solid points up there.  Many times people overlook that in a negotiation it is not you VS them.  You are both on the same team and you want to help him move his house quickly.  Once he realizes that, then he will be more receptive.

O'Neil B · Answer

Try to get some more info on that water damage. That could be something major which could cost more than what you are looking to pay for the house.

Skye Bowen · Answer

Oh yeah, and he's been holding on to the property for four months and he's super eager to be rid of it!

Skye Bowen · Answer

Thank you everyone for your wonderful input! Just as an update, I did go to see it today, and I think I am interested in it! The floor could use some work, and I'm going to discuss with my friend about us doing the work together, if it comes to that. He already said he would if I offered him part of the sale of the home. Other than that, there's nothing else wrong with the house that I can see. Mostly up to date.

I'm looking to sell it and take back a note. I think waiting for cash on this place, especially around my corner of the world, is near impossible.

So, I'm off to call the park tomorrow to discuss what I want to do (buy and sell). I've read in Lonnie's books that I should try saying that I have friends that want to move in and I'm just financing it, but that seems so underhanded to me. I'm just going to tell it like it is, try to lean it in their favor, and hope they are okay with it.

Thank you all! We'll see where it goes from here.

Rachel H. · Answer

Hi Skye,

When negotiating, it's best to work backwards. Figure out what price you're willing to pay for the condition of the home, then subtract the fix up work involved from that, holding costs, etc, to arrive at your final price. It's best to go in with a couple of bids from a couple different contractors (depending on what needs to be fixed up). If there's water damage in the home, I'd be really careful. Personally, I don't get into major rehabs and will pass on homes that have major structural problems. Hope that helps!

Delondon Dear · Answer

Did you do your research on the house? How about you find out what it is worth instead of going off what they are telling you. Sellers will say anything to get the house sold.

You can tell him that you are ready to get the ball rolling with this thing, but we can't give you what you are asking. No way, no how. lol.

Cole Haynes · Answer

Skye,

What amount are you looking to pay for the home? What are your plans for the home? To sell for cash(flip) or sell on a note?

There are a lot of factors that play into the deal that will help you determine if the home is worth the time negotiating. I would make sure you have a good idea of what the homes in the park are worth.

You said the seller already moved out? That would be one of the first things I bring up in negotiations. Mr. Seller, I realize you want X amount for the home. But, In this market it is taking X amount of time for homes to sell for CASH on a lease lot. The rent is X amount per month, at those X number of months that will cost you X amount of money in holding time alone!! Assuming someone paid you full asking price in this market.

He just doesn't sound motivated, yet.

Skye Bowen · Answer

Aha! Good idea, that's what anonymous husbands are for.... and that's a lowball price too! I don't know if I have the fortitude to drop it that low. We'll see though. I can't see as he'd be willing to wait on it for much longer, seeing as he's already moved... Thank you!

Loc R. · Answer

Just play good cop, bad cop.

Tell him you want to give him $5k for it, but your business partner doesn't want to pay more than $2k.

Go from there.

How to negotiate nicely with seller?

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