negotiating purchase price

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lstone
Posts: 1
Joined: Tue Nov 22, 2011 11:29 am

negotiating purchase price

Post by lstone » Tue Nov 22, 2011 11:37 am

We plan to purchase a customized manufactured home that will cost about $150,000 with options plus another $70,000 in various site costs, including the erection of pillars (pilings) to support the home about 10 feet high to accommodate flood plain zoning in this part of Florida (gulf coast). We will probably use Jacobsen as the builder, although that is not certain. The question is whether we should expect mobile home manufacturers, e.g. Jacobsen, to negotiate their "list" or first-offered prices? I have no idea what the dealer mark-up is, but with a $70,000 (approximate) tab for "planting" the place and $50,000 worth of options on the home, I would think this becomes an exercise on a par with buying a new automobile. Is that an accurate assumption?

trmimo
Posts: 202
Joined: Tue Sep 12, 2006 9:54 am

Re: negotiating purchase price

Post by trmimo » Thu Dec 15, 2011 5:19 am

The manufacturer will not change the price, the retailer may. There is no list price for a manufactured home. Each retailer sets their own mark up. Most are pretty close to the same mark up because they compete with each other. If your retailer will be acting as your general contractor for the site improvements they may be more willing to negotiate. It sounds like you will be ordering a home. That is very different from buying a car off a dealer's lot that is costing them money while it sits there.

David Oxhandler
Posts: 1459
Joined: Tue Oct 02, 2007 8:37 am

Re: negotiating purchase price

Post by David Oxhandler » Thu Dec 15, 2011 8:35 am

In most states factories are not permitted to make retail sales. Licensed dealers are the factory's only customers.

When I started selling mh in the 1970's we had customers who managed the set up and installation of their own homes. We even had some hook up their own trucks and pull them off the lot. It is very different today. UNLESS you have considerable contracting experiences you need that dealer to managing the installation of a modern manufactured home.

Manufactured homes have matured and grown in size, weight and complexity. managing and coordinating

permitting site prep transport foundation selection and installationset up and marriage of multiple modules skirting hook ups
to satisfy the builders requirements and local building zoning and health rules has become very complex and specialized. The manufactured home dealer has evolved into a general contractor and you need that experience, licencing and organization.

To learn how to find a reputable dealer and negotiate a fair price download The Grissim Buyer's Guide to Manufactured Homes and Land
David Oxhandler
[email protected]

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