How do we come to our offer amount?
This is probably the single most important question that can be asked of us. I say this because it is a deep concern for, not only me personally, but also our entire company that, you understand that our intention is to help you, not hurt you. But this is easily misunderstood when someone receives an offer that is below their expectations. It may be perceived as an attempt to “low ball” you. However, this is not at all what is happening. Please allow me to explain the process below:
You may have noticed that our offer arrived in your inbox within minutes of you filling out our form. This is because our offers are sent out systematically and objectively, that is, we are not emotionally vested in our offer amounts. They are purely on the basis of the information you submit on our form being compared with current market conditions. This information includes the following:
- The age of the home
- The size of the home
- The number of Bedrooms
- The number of Bathrooms
We have purchased hundreds of homes each year and have gathered tons of data as a result. Therefore, we have developed a systematic approach to our offer amounts. When you answered the questions on our form we took that information and ran it against every home stored in our database. This gives us the average sales price for that same style home. The only variable in the equation is the homes condition, which we’ll determine as we get deeper into the process. This is the reason for the range amount. It can be quite significant between the low end of our offer and the maximum, because we need to view the home in person before we can narrow it down. Also, this range amount should be taken as an indicator only. There will be situations where a home is in better or worse than typical condition. Therefore, our final offer may be more or less than the original offer amount emailed to you.
This is why uploading pictures is a very important part of the process. It allows us to narrow down our offer amount prior to coming out to the home. The last thing we want to do is waste either of our time. We purchase homes at great distances from our office locations, resulting in airfare expenses, car rental, and even hotel stays. We have to be sure that you’re willing to entertain a solid offer prior to making these arrangements, and the only way to make that solid offer is to get as much information ahead of time. Pictures are worth much more than a thousand words to us.
Your Asking Price
The first thing that needs to be considered is how you came to the asking price you did? Since it’s virtually impossible to have accurate comps without a lot of data, it’s very difficult to gauge the value of a mobile home. Most people we’ve come across, when faced with this question, often state that they looked up homes resembling theirs online and copied the asking price. There are two problems with this approach.
- Comps have to be taken from a sample of sold homes, not homes that are currently on the market. There are thousands of people online who have overpriced their home. This is the reason for their inability to sell. And they probably looked online at other homes that haven’t sold in order to get their asking price. It’s not that they’ve chosen a poor way to value their home, it’s just the only option available to them.
- Home values swing wildly from one park to the next. In fact, there are homes worth 10k in one park that would be worth 15-20k in a park just down the road. This is because the quality of the park matters greatly. I’ve been in some parks where I could barely drive down the street without risking the wellbeing of my vehicle because the pot holes were so bad. This absolutely plays a part in the value of your home. Move that home down the road to a park with solid streets and a nice appeal, and you’re home increases in value.
So the first thing that needs to be considered is this: Are you asking too much for your home?
The second is this: What market are you trying to sell in?
Two different markets
There are two markets when trying to sell a mobile home. The first is the Retail Market. This is when a home owner sells a home to a buyer looking to move into that home, in that park. This market is definitely going to be your best bet for a higher sales price. People are willing to pay more when it’s a home they’re going to live in. However, as you’ve probably already found out, this isn’t always the easiest and fastest way to sell. In fact, selling retail, depending on your asking price, can cost you more money than if you just sold it wholesale from the start. Lot rent, taxes, and even mortgage payments can eat you up. So weigh out the total costs prior to making a quick decision.
Retail Market = Higher Profits (Sometimes) with a much slower sales cycle.
The second market is the wholesale market, and this is where EZ Homes operates. We can provide quick, cash payments with no hassles. Our services cater to a variety of situations resulting in the need for a quick sale. Some examples include:
- Debt Relief
- Job Relocation
- Death of Owner
- Buying a new home
- Medical Issues
This market comes with all sorts of expenses that must be considered when purchasing. Moving a single wide home can cost $5,000 and up depending on where it’s moving to. Doublewides can be substantially more, ranging in the areas of $9,000 – $15,000+ depending on its final destination (See more on moving costs here). We encourage you to use our Moving Cost Estimator to get a good sense of what it would cost to move your home.
These expenses, coupled with repairs, lot rent while it sits, etc… all play a factor in what we can sell the home for. Even the type of foundation it sets on can increase the moving costs. In fact, movers charge just about double the tear down fees if the home is on a permanent foundation. Often times this is required for homes that are located on private property. In such cases, we even have to worry about obstacles obstructing the home from getting to the road since movers charge more for troubleshooting problems that hinder a smooth transport.
Lastly, please remember we not only purchase in the wholesale market, but we also sell wholesale. Our buyers are repeat buyers who expect deals on homes since they purchase in volume. Without a fair asking price on our behalf, we don’t have a business.
Wholesale market = Lightning fast sales with less profit.
I truly hope this page has been informative and enlightening. We completely understand that we may not be your first option. Profit and a quick sale is the optimal solution, but it’s rarely the case. If you have time to sell your home and you’d like to aim for higher profits we encourage you to do so, and honestly hope you are able to get more than we can offer you. We are only giving you an option. You’re obviously not obligated to accept our offer. But if you need a quick sale with honest, trustworthy people, we are your company! We have nothing to hide. Take a look at what people are saying about us and our proven track record.
If you wish to continue with the process and wish to learn more about what that looks like click here. We look forward to working with you!