Can't Sell

[judy]

We live in a 4 star MH park, and we can't seem to sell our home. We have had the MH on the market for over a year. Now our real estate broker is telling us that all the homes in the market are selling lower and we will have to sell our's at a lower price to get a sale. We are going to end up with nothing. One question? Is there such a thing as good faith money. Does the buyer have to give a good faith amount just to make sure they are serious about buying. I was told that is not true anymore in California. Thanks. Judy

[jgn]

That is up to you but earnest money is most often the case. It can be as little as you will accept or as much as they pay. Part of the real estate contract are the terms and conditions with several outs for the buyer. They specify the interest terms appraisal terms, closing conditions and if any of these are not met they get the earnest money back. If all of the conditions are met and they back out, generally the realtor takes their commission and you would get what if any is left.

[sheila]

Hi Judy

[John Merchant]

When you say your MH just doesn't sell, I assume you're talking about "for all cash", and you're not offering to really deal with a buyer on terms he/she can handle.

I've bought and sold MHs for lots of years, and find that a MH is MUCH easier to sell, and without much risk, if I offer it for a down payment and a note over several years for the balance. I've sold many just like this, and know from experience that if you'll check the buyer's credit, as his/their expense, and call their references, you CAN find a solid buyer who will make those payments.

Generally speaking, RE Agents prefer the all-cash sale, as their motivation is an all-cash commission...but YOU'RE in charge. If you say, this is how I'm going to sell, then they either go along, or get along. And you may do as well offering it as a FSBO with no agent.

And let's talk about the terms you might offer: Let's say you find good-credit buyers who're willing to put up a 10% down payment, which is what I generally ask, and they give you a 5 year note, @ 12.75% interest per year, which is what I generally charge. On a $20,000 MH, this would mean you'd be getting a $2,000 down payment, plus a monthly payment for 5 years of $407.30 (go back to the note calculator above to figure any note, any interest rate).

Now, what might you be able to do with your note? Why, you could sell it for cash, with some discount for cash-now, or you might trade that note for a down payment on some other home, either MH or Home/land package. Who'd take such a note? Lots of home owners would, and frequently with NO discount. It would be treated just like CASH! Or maybe for a car, or boat, etc. It's used just like money.

Even if you did nothing but collect and bank the payments, where could you find a better investment today, than this note that's paying you 12.75%? Not easy to find any other investment that's doing so well, is it?

Happy MH selling.

[sheila]

John,

You don't run in to the problem with the Communities? i had a buyer/seller situation where the seller was more than willing to sell with himself as the lein holder. The park however would not approve it. Also, If the home is not paid in full.... I don't think this would work? Just curious. At 12.75 it definately perked my interest! Especially, when the lenders are up to nearly 20% if credit issues are involved.

[sheila]

John,

You don't run in to the problem with the Communities? i had a buyer/seller situation where the seller was more than willing to sell with himself as the lein holder. The park however would not approve it. Also, If the home is not paid in full.... I don't think this would work? Just curious. At 12.75 it definately perked my interest! Especially, when the lenders are up to nearly 20% if credit issues are involved.

[Maureen Wilson]

Judy,

Where are you located? We have been looking to buy a mobile in the SF Bay Area for a while now...If you're in my area and not in a senior only park, please drop me an email !!

[email protected]

[judy]

Thanks for all your help. The problem seems to be the loan. A loan for MH in California is 12%. I would take a second, or some cash. Anything, we have another MH up in the Trinity Mt. that we are waiting to move into.
Thanks
Judy