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!