There’s a real fear out there that cash buyers lowball people who are desperate to sell. Some do. Here’s what actually goes into a fair offer.
Understanding the actual math behind an offer is the best protection against getting a bad one, from us or from anyone else.
What factors go into the number?
The home’s condition, its age, what repairs it would need, the lot rent situation, and current comparable sales in the area. It’s the same basic factors a realtor would use, minus the commission math layered on top.
We physically look at the home rather than guessing from a description, because condition is the single biggest factor in the number. Age matters too, but a well-kept older home can be worth more than a neglected newer one, which is exactly why an in-person look matters more than a simple age-based formula.
The park itself factors in too, since lot rent and how desirable a specific community is affect what a home can realistically sell for once we’ve fixed it up ourselves.
Why would a cash offer be lower than a fully fixed-up asking price?
Because it accounts for the work and cost involved in bringing the home to market-ready condition, work you’re not doing yourself. That’s the trade: a faster, simpler sale in exchange for not doing the fixing-up.
Think of it the way you’d think of trading in a car instead of selling it privately after detailing and repairing it yourself. The trade-in number is lower, but you’re also not the one spending time and money getting it ready for a retail buyer. The same logic applies here.
We’re taking on the cost, time, and risk of the repair work ourselves, and that gets reflected in the offer compared to a fully finished, move-in-ready listing price.
How do I know if an offer is fair?
Ask how the number was calculated, and ask for more than one offer if you’re not sure. A seller who can explain their number in plain terms is different from one who just names a figure and won’t elaborate.
We’re glad to walk through exactly how we got to our number, what we’re accounting for in condition, what comparable homes nearby have sold for, and what it would realistically cost to bring the home to a fully rehabbed state. If a number can’t be explained, that’s worth questioning.
Getting a second opinion never hurts, and a confident buyer won’t discourage you from comparing.
Do you ever negotiate?
Yes. We give you our honest number based on the home and the market, but there’s no obligation to accept it, and we’re glad to explain how we got there.
If you have information we didn’t have, a recent repair, a detail about the home we missed, that’s worth bringing up, and it can change the number. This isn’t a take-it-or-leave-it situation.
A conversation about the number is always welcome, especially if there’s something about the home’s history or condition we didn’t see during our visit.
What if I’ve been burned by a lowball offer before?
Ask us for ours and compare it against what you were quoted elsewhere. We’d rather earn the sale on a fair number than count on you not checking.
A bad experience with one buyer shouldn’t sour you on the entire idea of a cash sale. It just means it’s worth comparing offers and asking questions before deciding who to work with.
Curious what your home is actually worth? Ask us, we’ll walk you through the number. (602) 641-3237 or penrodmobilehomes.com.