Feb 17, 2022
In this episode of The MHP Broker’s Tips and Tricks, we outline the multiple risks in selling your mobile home or RV community through a broker who represents buyers. Maxwell Baker explains the drawbacks for sellers in terms of fewer prospects, weaker or missed due diligence and a broker working for the buyer－not for you.
As always, this episode is narrated by Max, co-founder of The MHP Broker, and brought to you by our proprietary Community Price Maximizer. Use our four-step system, and we guarantee you a higher price when you sell your mobile home or RV community.
Here Are Some Show Highlights:
- Buyers and brokers have a lot of good reasons to want to sell you park off-market, but those reasons solely benefit them, not the seller. (1:36)
- When you only have one buyer for your property, and no backup buyer, you have little leverage for negotiation. (1:36)
- Brokers in off-market deals aren’t as motivated to do appropriate market research and due diligence. (1:53)
- Those off-market brokers are likely to have a relatively small network of buyers they’ve worked with in the past, and that’s all who’ll see or know about your property. (2:15)
- These brokers will be paid by the buyer, so that’s naturally where their loyalty is. (2:15)
- The buyers want to be in a position of power, the only ones looking at your property. (3:37)
- If you come to Max at that point to help close the sale, he’s at a disadvantage becaue he doesn’t have backup buyer and the groundwork’s already been laid in favor of the prospective buyer. (3:37)
- Such off-market dealings can also lead to crappy contract-to-close ratios, with an unhealthy amount of deals falling through because of weak or non-existent due diligence. (5:14)
- The contract-to-close ratio at The Mobile Home Park Broker is in the upper 80% range, much higher than community owners are likely to get in an off-market deal. (6:38)
- About 90% of The MHP Broker deals are exclusive listings, because that give more power to the seller and usually leads to a much better deal. (7:25)
- Max’s company also offers the advantage of seller-friendly contracts. He’s seen off-market contracts that are 30 pages long, and put the buyer in control and leave sellers scratching their heads. (7:56)
Want to learn more about the multiple advantages of becoming an exclusive listing of The Mobile Home Park Broker? Want to find out more about why you’re better of steering clear of off-market brokers? Just drop us a line at info@themhpbroker.com or give me a call at 678-932-0200.
Power Quotes From Max on This Episode
- (Off-market deals are)…”just a higher probability for them and not (for) you as a seller.” (1:37)
- “...these brokers are getting paid by the buyer..and you’re going to be negotiating uphill.” (2:15)
- “Brokers rarely do as much research or due diligence as they do when they exclusively list a property for sale, because it’s a lot easier to just slam a deal together and make a bunch of money.” (2:15)
- “...you don't have somebody who's hustling continuously to find you another buyer in case this guy blows out.” (3:37)
- “...anytime you try and sell your community off market, there's going to be a higher probability of it falling out of contract.” (5:14)
- “There’s just a zillion things when it comes to selling your community that we have to take into consideration.” (5:14)
- “The way we’ve built this company is very methodical; we're very like step by step. We have checks and balances all across the board and our close ratio is up in the upper 80s for exclusive listing once we put it under contract.” (9:07)