I listed a manufactured home in a tiny town in northern Scott County on 15 acres last week. I have had it in my pipeline for close to a year so I have been watching the market in the area for a while. Prices have gone up quite a bit, but lately similar properties have all been listed for about $160k.
So we got pictures and put it on for $160k. I fully expected it to sell for a little more since the market value is no longer determined by recent sales. It is determined by how desperate the buyer is.
Turns out they get more desperate every day.
We got 8 offers. 10 actually but two were for a financing type that did not do manufactured homes so we can’t really count those.
One offer was $155k. I always laugh at those buyers and scratch my head. What rock have they been hiding under that they and their realtor don’t know that practically every house in multiple offers goes for at least list price.
Five of the offers had escalation clauses. That is where the buyer pretty much says they will pay so much more than any other offer up to a certain price.
I got one offer for $200k. My mind was blown. No escalation clause. Just a flat $200k.
This gave me the chance to tell the buyer’s agents with the escalation clauses that they might want to up their amount if their buyer really wanted the house.
Fortunately one buyer whose offer had some better secondary terms raised their escalation clause to be $200k. I have seen where people throw out some high number on an escalation clause to get their offer noticed but they have no intention of every going that high. I called that buyer’s agent to confirm they were legitimately willing to go that high. They were. They got the house for $200k. Next step is to convince the appraiser it is worth that.