Dealer Closing Wants Offer

[maforkat]

We recently went to a "dealer closing" sale at Oakwood. We found a dw we liked but it was a little out of our price range. Last night a rep from Oakwood called us and asked us to make an offer on the home as they did not want to have to move it to another lot. I'm really not sure what to offer. The dealer was asking $79,900 but this is a home we "like" not one we are in love with. What would be a good offer?

[Celtlund]

You didn't say what would be included in the deal. Remember, you have to have a place to put the home. Do you already have property or would you put it in a park? Would the deal include site prep and set up or would you have to pay that out of pocket? Is air conditioning included or is that extra?

How about a loan, are you pre-qualified? What you need to do is add up all the costs and decide what you can afford. If "it is a little out of your price range" forget making any offer and find something else you can afford.

[David Oxhandler]

It is difficult to give you a direct answer but here are some things to consider prior to making your offer.
1- Is the sales price going to include:

delivery
permits
installation
utility hook ups
site preparation
skirting
steps
air conditioning
sales tax
If not you better get a firm grip on what these items will all cost. You will be acting as your own General Contractor. It is as close to certain as possible that if you have to contract for these type items and manage the project yourself, with out prior experience, the aggravation and expense will exceed normal levels.
2- Who will administer the warranty? Usually this is handled by the participating dealer. If they are going to be out of the picture who will you turn to in the event that you have a warranty claim? What will be the turn around time from contact to repair completion. Are they willing to include that in your sales agreement?
3- What is it worth to Oakwood to not have to pick that home up? Over and above the cost of transporting the home, the builder will most likely have to pay off the dealers floor plan financing, prior to moving it. That is probably real expense that Oakwood is trying to avoid. You will need to negotiate to find out just how badly they want to avoid digging into their back pocket at this time.
4 - We are at the end of 2010. Unless that home is already a 2011 model the depreciation in book value will be considerably greater in just 60 days for a home valued as "last years" model. While this really makes the value and usefulness of the home no less for you it has considerable impact on the resale value on a dealer lot where most of the homes will be 2011's.

You are in an enviable position. The considerations above put the seller in a tight spot, especially in todays buyers market. This in no way says that they will accept a serious loss but you should be able to eliminate much of the middle mans profit.

How do you put a price on the difference between loving a home and just liking it? That is a very personal matter. Only you and your family can weigh the difference to put a dollar value to it.

If you have not read it download The Grissim Guide to Manufactured Homes and Land It is the best book of its type and has excellent advice on how to negotiate price.

Best of luck. Let us know how you make out.