MHP For Sale By Owner?

Most MHP owners hire a broker to help them manage the sale of their MHP.  Frankly, that’s a pretty good idea.  However, there are situations where it might make sense to sell directly and without a broker.  Here are 5 reasons to consider selling without a broker, especially in today’s market:

  • Billions of dollars of real estate is transacted between buyer and seller each year in this country without a broker.   In other words, it’s legal, commonplace and well within the boundaries of good business practices!
  • The savings in fees for the seller (and perhaps the buyer) can be substantial:  4% of $2.5M is $100K!
  • If you have one or more interested and well-qualified buyers and you’ve reached a “meeting of the minds” on price and terms, you might be good to go.  By well-qualified, I mean they have down-payment funds in hand, good credit, industry experience and ideally, a deadline by which they need to invest.
  • Real estate attorneys (especially those experienced in mobile home parks) and title companies will facilitate the transaction and paperwork and mitigate all the usual liabilities for a nominal fee.  In fact, you’d pay most of these fees even if you were selling with a broker.
  • If you want to structure something a bit unconventional, like adding an equity partner, leasing the property with an option to purchase, a contract for sale that includes a long term (6, 12 or 18 months..,) etc., most brokers will work to dissuade you from this type of deal.

I am not recommending you sell without a broker – far from it.  However, don’t automatically assume you need a broker to complete the deal.  If you are thinking about selling, please give me a call before listing with a broker.   A 10 minute phone conversation might save you a bunch of time, aggravation and $100K!

About John Vashon

I own a family business that invests in and manages our own portfolio of mobile home parks.
This entry was posted in Sellers and tagged , , , , . Bookmark the permalink.

1 Response to MHP For Sale By Owner?

  1. John, I like that you said that in buying a mobile home park or an RV park, I should consider buying directly from the seller if I want to add an equity partner or lease the property with the option of buying it. My husband and I are planning to invest in an RV park in our city since there are a lot of campers who cruise by. Since we don’t have any intricate plans for the property, perhaps it would still be wise to contact an RV park brokerage service just to be safe. Thanks for this!

    Like

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