Every year I receive about a dozen calls from buyers who want to make low ball offers on mobile homes. I received my first low ball offer call of the year today, on the second day in. So what qualifies as a low ball offer? Today’s buyer wanted me to offer 50% of the asking price.
I always tell buyers, who ask, that I’ve never heard of a low ball offer ever being accepted. Sellers just get insulted and won’t even respond or counter. Here are 6 reasons why a low ball offer has no chance of going anywhere in our current market. Ok, a 99.9% chance of going nowhere. And, of course, that .1% is what every low ball offer buyer is betting on.
1. This is a bona fide, extreme seller’s market. For the past two years, good homes almost always sell for full price or above asking price, in this market. (I’ve never had a buyer ask me to make a low ball offer on an over priced, rundown mobile home in a less than desirable neighborhood that no one wants. Buyers only want to make these offers on the very best homes in the best locations on homes that are already priced to sell.)
2. Most often buyers think they can make a low ball offer because the home has been on the market a long time. In my experience, it’s just the opposite. When a home sits for a long time on the market it’s usually because the seller is stubbornly insisting on getting their price, no matter how long they have to wait and they are usually the least motivated.
3. This is our high season and prime home selling time and sellers know it. This is the very best time of the year to sell your home in the desert. There are lots of cash buyers here and lots of competition. Any seller would have to be out of their mind to even consider a low ball offer now. If this were August and the home had been on the market a year, you might have a chance with a low ball offer. But probably not even then.
4. When the average home price in the desert is in the $200,000s and the average home price in cities like Palm Springs is in the $400,000s, mobile homes, priced in the $50,000s to $100,000s, are already huge steals.
5. Something most mobile home buyers overlook is the fact that nearly all of the mobile home parks are located in the very best locations in the entire desert. So, not only are these homes already priced to sell at huge discounts, but almost all of them are located on prime lots and land.
6. Then, there’s the matter of size. Where else in the entire desert can you buy a 3 bedroom, 2 bath home, usually with awesome views and location, in some of the most desirable cities in the world, for such low prices, to start with? You can’t. Nothing even comes close, in my opinion.
I’ve come to learn, over the years, that mobile home buyers make low ball offers in the same way that most of us buy lotto tickets. We all know that we have a better chance of getting hit by lightning, than winning the Lotto, but on the other hand someone does win the Lotto every week or month and you never know unless you play.
So, as long as you remember that your odds of getting a low ball offer accepted are about as likely as winning the Lotto, then you won’t be too upset at the outcome. But I still think your time and money would be better spent investing in Lotto tickets.