Why High Pricing A Mobile Home Is A Bad Idea. I got an idea!. We should price the home super high and then come down because we can always go down on price, but not up, right?
With the rising real estate market that we are all seeing throughout the country, it is natural to think that selling your Sarasota Florida mobile home is the right thing to do now in an attempt to cash in on all the Buyers looking to relocate to Florida.
While pending on the Seller’s situation, this may not be a bad idea, we at The Mobile Home Dealer stress that there are quite a few pitfalls with the idea of trying to sell your mobile home by yourself while commanding your own high price.
In this brief article, we will look to educate you, as a Seller, on why pricing your own mobile home at an extremely high price point and not being willing to negotiate on price is a bad idea
This is a common idea that I have Sellers come to me all the time and tell me that this is their plan, to price their home high in hopes that they will hit a home run with this price, but are willing to come down later.
Every time I hear this idea, I always go against it as I do not think this is a good plan to follow when trying to sell your mobile home quickly.
The reason why is that most mobile home Buyers are looking for a home that is affordable.
As we can all agree, the term affordable can mean different amounts of money to different people. What may be affordable to one person may not be affordable to the other.
One thing is for sure, though, the lower you price your home, the more people will find that price affordable.
Sarasota mobile home
With that thought in mind, I always suggest starting the pricing of your mobile home as competitively as possible in order to pull the most eyes to your property as fast as possible.
Price is a deciding factor for most Buyers in the mobile home space, not necessarily features of the home or even location.
If a Buyer can get a comparable home to yours at half the price down the street, then it will be a very difficult presentation for you as a Seller to try and explain why the Buyer should go ahead and pay twice as much for a very similar home like yours.
Many times Sellers expect to see retail pricing on their upgrades and will price their home according to what they paid for these upgrades regardless of when these were even done to the home.
As mentioned previously, in one of our other videos, much of the benefit of the home’s upgrades that have been done to your home should be paid to you in the form of actually enjoying the property when these upgrades were put into the home.
Overpricing Your Mobile Home
Pricing your home high will usually result in your home sitting on the market longer, while the Seller continues to pay lot rent, utilities, taxes, and all other carrying costs associated with owning that property. These continued monthly payments will eat into your profit even if you sell the home for a higher price.
When buying a mobile home on leased land in Florida a Buyer or Seller does not need to report the sales price of a home to anyone. Many times this leads to no comparative pricing in the area for a mobile home. With this lack of information, we often see Sellers who are trying to sell their mobile homes themselves look online for their own comps on similar properties. The problem we see here is that most Sellers will compare their mobile home on leased land to that of a single-family home. The main issue here is that the Seller is comparing apples to oranges because a mobile home on leased land in Florida is personal property and not real estate.
Following this pricing guideline, we continue to see mobile homes sit on the market for extended periods of time because the home is considerably overpriced.
We at The Mobile Home Dealer feel it is always best to price your home aggressively from the start and be willing to negotiate with the Buyer when they want to make an offer.
Making it easy to have the Buyer buy your home is the first step in getting your home sold fast.
By pricing your home at our below-market price from the start, you will garner more attention faster creating a quicker sales process.
Although selling your own mobile home is possible, there are more disadvantages and advantages. Here are some additional issues that you may run into if you choose to do it yourself.
You can lose money. According to statistics, mobile homes sold without a realtor are less than 15% compared to those sold by the agent. This is understandable because agents know what they are doing to maximize the price. The higher the price sold is the bigger their commission.
You can lose lots of time. You are losing time the moment you start the process. From posting online, researching where to post, doing the legal paperwork, and meeting with potential buyers, everything will be overwhelmingly time-consuming.
Paperwork. There is no need to explain here. Paperwork always means a headache especially if you are not an expert in this field.
Quality of buyers. Realtors know exactly what type of buyers your mobile home will attract. But by letting every interested party take a look at your home, you are not only losing a lot of time, but you are also wasting the time of quality buyers because you don’t know which is which. Realtors have contacts and a database of potential buyers.
At the end of the day, the money you lost by selling your mobile home yourself might be bigger than what you are supposed to pay the realtor, not to mention the time you lost.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life!