What To Offer

the trailer is a 2002 had 2048 sq' ft, set up on 1.8 acres of land, tax rox has the land valued at 14,001 and the trailer house at 65,000.... this is a repo .... what would be a good offer ? It is out in the country not in town.

Any input would be great, we are new to this.
Thanks

Comments(8)

  • rbowen14th February, 2004

    Trying to see if I am doing this right

  • MikeWood14th February, 2004

    It would really be a good idea for you to do some comparables ( find out what other properties in that area that are similar have sold for in the past ). What are they asking for the property currently??

  • rbowen15th February, 2004

    Thanks, they are asking $86,000 I had my agent run a msl and she told me that the land in the area was runnin on a average of 4000 per acre, but there was not enough sells to run one on land& house. So I am trying to figure out since the trailer is in repo, do i offer a less price ? something like maybe $50,000,
    when I talk to a mh wholesale buyer that I kow he tells me not to spend more than about .40 cents on the dollar for a repo ? As you can see I am confused.

  • pejames15th February, 2004

    rbowen,
    I think if you do some more researching. you will see that for MH, .40 cents on the dollar is about right. You want to get the best price for your investment. Remember, you make your money when you buy, not when you sell.
    Good luck[ Edited by pejames on Date 02/15/2004 ]

  • loanwizard15th February, 2004

    What's a 92 MH worth in your area? That's what this MH will be worth in 10 years. They depreciate like rocks. That is a good thing for the savvy buyer. On it's own land helps greatly. @ .40 on the dollar it comes up to approximately 26k for the MH and 7200 for the improved land. Is your number of 4k per acre raw land or with septic well and electric? That could significantly change the numbers. What are you going to do with the property? What are rents? Will it cashflow. Off the top of my head I'd be scared to have more than 40k in the property, but i don't know the deal or your expectaions or exit strategy. Bottom line for me is... will it cashflow?

    Good Luck,
    Shawn(OH)

  • MikeWood15th February, 2004

    Offer something extremely low and see what they counter offer. Let us know what happens!!

  • patrickmills16th February, 2004

    offer 50% of tax value

  • omega116th February, 2004

    Don't think of making an offer. Ask what they would be willing to accept as the lowest price if you were to pay all in cash! never volunteer what you'd pay or you might pay just a bit to much ![ Edited by omega1 on Date 02/16/2004 ]

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