Asking Price?

[VinoMooney]

What % of asking price would you use to make the initial offer on a plane in the 250k-325k range. I have a couple located that I am going to begin pursuing. Some with brokers, some with owner/seller. Not really worried about lowballing a broker but an individual is a different situation. Or is it? After reading the great info in the "cut your LOSSES" thread, I thought I would see what you guys who have bought before would say. This is my first .

[chrisk]

It depends. How fairly is the plane priced? How big of a hassle will it be to buy it? How long has it been in the market? Any defects like missing logs or a damage history? 35% off, to full price is in the range.

As far as offending a seller, I would not worry about it, provided you have not had them jump through hoops, then make a crazy low ball offer. In other words, if you waste their time, and then throw a low offer, they might not be happy with you.

[kmyfm20s]

I would think a broker would not move the price as much as a private seller. You figure they want to sell the plane fast so they advise there client of the fair price and then take around 7%. A private seller wants to keep that 7%. I have sold planes myself and though a broker. I feel my total giveaway ended up being the same 11% lower than my asking price.

[carusoam]

If it is fairly priced you would have to decide...expect brokers to be pretty close to a fare market price.

Your competition will be other people looking at the plane.

Their competition will be other planes that are similar.

Be looking for everything that is in the plane to be listed in the for sale description. It should all be working properly. These are the big negotiating points...

Then ask the guy selling it the same question...

How firm is the price?

Is everything working as advertised?

How long do I have to decide?

The $300k plane sales process is a little more complex than the other thread is going through.

Your willingness to travel to see it and spend the extra money to do things properly will balance what you get from negotiating...

If you get bogged down by who is going to pay for a rental car on this project, you are better off just going to AAA... The sales plane organization not the car club...

When you are done. Make sure you have transition training by a known Mooney specialist. Your PPI will be done by an MSC. Your transaction will cost near $5k. Your CFII that helps you get home will need a ride to the airport, a stay in a hotel, and an airplane ticket to get home....

You will be happy posting pictures at MS. Doing it with a high level of quality is expensive. Doing it at the lowest cost has some inherent risk.

300k is a lot to risk. Enjoy spending the acquisition money. It's like insurance... Some brokers might throw in a day or two of transition training...

See what I mean?

Best regards,

-a-

[Danb]

In addition Anthony I would try to get the transition cost paid for by the seller, I did but both planes were new, I'd assume a $300k purchase I would try to get as much of this included. Transitioning to the long body after 2000+ hours in a J still took about 4-5 days including about 12-16 hours ground on systems like Glass panel. It's important once you enter the Taa world you can get your new baby home safe and tuck her in with a hug and kiss.

[Mooneymite]

The only time I had to buy through a broker, I got a much greater percentage off "asking" than I have working directly with sellers.

After I made my offer, I got the feeling the broker was working with me to convince the seller that my offer was reasonable, but perhaps the broker was responsible for the inflated asking price?

The key to me is for both buyer and seller to have a reasonable value in mind. However that does not preclude "bargain shopping".

[Robert C.]

I would think a broker would not move the price as much as a private seller. You figure they want to sell the plane fast so they advise there client of the fair price and then take around 7%. A private seller wants to keep that 7%. I have sold planes myself and though a broker. I feel my total giveaway ended up being the same 11% lower than my asking price.

 

That was my experience.

 

I bought an Ovation in that price range last August. The brokers i dealt with when looking at several different aircraft were not interested in moving the price much at all to get the sale even though some of the aircraft had been sitting for at least 6 months. 5-10% less than asking (by broker) was about the range i could negotiate last summer/fall (all a/c in good condition).

[DAVIDWH]

Somewhat of a cat's meow here.

 

1. If you offer too much you leave $$ on the table.

 

2. If you offer too little and T the seller off, deal is finished.

 

3. One way might be to have a friend low ball the offer to see how much flexibility the seller has. (This has worked for me many times in the real estate mkt.)

 

4. When negotiating, remember the first concession the seller makes will be the largest, so If the seller drops price say $20,000 on second go around, don't ask for more than his initial drop. (He won't do it)

 

5. So much in any negotiation, just depends.  Perhaps the bank is breathing down his neck, perhaps the ex-wife wants her $$$ now. One never knows until a written offer is made.

 

Good Luck!!!

[N601RX]

I know someone who just purchased a 2012 SR22 which was about twice the amount the original poster mentioned. He made offers on a couple before buying one and made the comment about how firm the prices were.

[ArtVandelay]

As a general rule I was told that sellers will never drop the price 20% or more, at least immediately. I would think the best time to strike a good deal is in Dec-Jan, so if you are going to buy, I would get to it

[carusoam]

best pricing can be found...

(1) At the end of a Macro economic cycle.... like 2009...

(2) At the end of a lesser economic cycle....End of the quarter or end of the year...

(3) When other shoppers are less interested in going out to see airplanes...mid winter with lots of snow...

(4) When other similar planes are in a similar market...

(5) When the price of fuel seems to be high and going higher... unlike today!

Negotiations are highly dependent on the individual buyer and the individual seller.

In the process machine business, I found the price would not sway much compared to what you can get added into the deal...

We would ask for their 'best price' and then add in the delivery and start up costs... similar to aviation themes...

I like the idea to have a friend call first to find the best price if possible. There is some risk in this... Now it appears to the broker, two independent parties are interested in the plane! You might accidently give yourself competition...

Getting caught being sneaky isn't a good way to start a negotiation...?

best regards,

-a-

[DrBill]

I'm a little different in this situation as I treat is a strictly business, not personal.  So I believe anyone will come down 10%, maybe 15 so I'll throw an offer at 20% off and see how hungry they are. If it was hard to find, then maybe start at 10%.  Depends on how bad you want it.  You can always go up!  Took me a while to find mine and it had just what I wanted so I made my initial offer at 10% and it was accepted.  (Conditional on no airworthy issues found on the PPI).  He brought it to my mechanic and when it passed (1.5 hrs later), I paid him and drove him and his wife home.  (1.25 hrs each way).

 Bill

[Cruiser]

I took a different approach when I bought my current airplane. 

Owner or broker, it doesn't matter. What I did was look at the plane and made sure the seller knew I was a serious buyer. My approach was for the seller to give me the best lowest price they were willing to sell. I told the seller I would not negotiate the number, I would either agree and buy or I would disagree and walk. NO second chance. 

In my case, at least, I believe it worked out very well .

[helitim]

Cruiser,

I like that method.

Tim

[DrBill]

I took a different approach when I bought my current airplane. 

Owner or broker, it doesn't matter. What I did was look at the plane and made sure the seller knew I was a serious buyer. My approach was for the seller to give me the best lowest price they were willing to sell. I told the seller I would not negotiate the number, I would either agree and buy or I would disagree and walk. NO second chance. 

In my case, at least, I believe it worked out very well .

That works too !

I just bought one of those super quiet Honda Generators off Craigslist.. The price was GREAT ($600 in the box) so I paid full price and I told him "I'll pay your listed price" when I called and it was still available.

 

Bill

[Hank]

What % of asking price would you use to make the initial offer on a plane in the 250k-325k range. I have a couple located that I am going to begin pursuing. Some with brokers, some with owner/seller. Not really worried about lowballing a broker but an individual is a different situation. Or is it? After reading the great info in the "cut your LOSSES" thread, I thought I would see what you guys who have bought before would say. This is my first .

There is too much variation in equipment, time and condition, to say nothing of the owner's opinion. Or owners who list it to pacify their spouse, not intending to sell. "But honey, I've had For Sale ads up on five websites since last summer. People just aren't buying right now."

Use the several valuation sites, figure what the plane is worth, adjust for condition, logs, etc, and base your offer on that. I know of two Js for sale now, one model year different, and almost $50,000 apart in asking price. No, I've not tried to figure out what either is worth.

[Mooneymite]

That works too !

I just bought one of those super quiet Honda Generators off Craigslist.. The price was GREAT ($600 in the box) so I paid full price and I told him "I'll pay your listed price" when I called and it was still available.

 

Bill

Your membership in the CB club may be revoked.

At the very least you could have asked him to raise his price 15%, so you could make him a low-ball offer of $600!

You've been warned.

:-)