How to Price a unit you want to sell

[brad barton]

Bruce,

Two retired dealers I trust have told me the only book that matters is the "black book" that is based on actual publicly-recorded sales at dealerships and at auction. And as mentioned previously, private to private owner sales are not included. That being said, Kelly, NADA and other free sources have to be taken with a grain of salt.

That being said, I'd like to remind you that my 2000 LXi is for sale.



http://www.rvtraderonline.com/find/listi...i-92128958



$245K only one slide, but we like it better having a flat floor on both sides of the bed instead of the bedroom slide and cross queen. We're planning to travel less in the near future.

BradBarton00LXiDFW bbartonwx@...

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To: WanderlodgeForum@yahoogroups.com
From: birdshill123@...
Date: Sun, 4 May 2008 19:48:25 +0000
Subject: [WanderlodgeForum] How to Price a unit you want to sell

As some of you know I am in the market for a newer Bird. Probably an
LXI. I have spent a lot of time on the net looking and talking with
sellers. Drove to Calif. to see an LXI and am heading to Atlanta and
Florida to see a few more. I am a businessman and when I sell
something the first thing you must do is use your head and not your
heart. These are inanimate objects and if one is attached to this MH
maybe one should not sell it. Of course some people are not sellers
they are simply testing the waters. But if you really want to or
need to sell a BB it has to be advertised properly. That means pics
and description on the net. You would not believe the number of MH
owners who think that 4 pictures of the exterior and a blurb about
musical horns is good enough. I had one owner who was selling a unit
at almost $100k over NADA tell me he was upside down and had to get
what he owed. Others go to NADA and add in all the extras. This is
wrong. Most DP's and especially BB's come almost fully equipped. You
do not add in : AC's, awnings. micro, aluminum wheels, etc.. The
sellers should add in things like upograded sound systems. LCD TV's,
satellite dishes, etc. In most cases the NADA price without options
will be close to what NADA claims the unit should be worth. But
this price does not reflect the marketplace. Especially the current
market. NADA is simply a depreciated from new price. Not an average
of what BB's sell for. But it can be a valuable tool for a starting
price. Then there are those who think that if they wait a year or
more that prices will rebound!! HUH??? There are sellers, including
a few dealers, who have had units for sale for more than 2 years.
Wouldnt that be a hint that the unit is overpriced? These are not
investments. They are high priced depreciating toys.

Bruce
1988 FC35

---

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[birdshill123]

Bill:

For cars and trucks they use prices from completed sales and
depreciation. They cannot do that for RV's as there is not enough data.
Instead it is simply a formula. I think after the first year it is 10%
a year.


Bruce

[birdshill123]

Larry:

I did not discuss the value of one Bird over another. I was speaking
in generalities. Of course a primo well maintained Bird is worth more
than an E bay POS. But after 2 years it is time to face reality. As for
travelling to see a Bird: It is not like buying a 2 year old Mustang
where you just grab your local Auto Trader and find a good one. How
many LXI's do you think there are for sale at any one time. Maybe 12 or
18. They are all at least 2000 miles from where I live. It is worth the
travel to find the right one.

Bruce
1988 FC35

[p_a_lazar]

I keep telling myself "do not get emotionally involved with inanimate
objects", but it doesn't work.

Paul
97wb43

[birdshill123]

Brad:

I would have pursued your unit but I have my heart set on laminate
cabinets. Thanks anyaway

Bruce

[Don Bradner]

No. If you reduce something 10% per year, it never reaches zero.

Using that method, each 100K of original value would have $34868 left at the end
of 10 years. After 25 years, that original 100K would have a residual of $7179.

On 5/4/2008 at 9:20 PM erniecarpet@... wrote:

>In a message dated 5/4/2008 7:17:57 P.M. Central Standard Time,
>birdshill123@... writes:
>
>. I think after the first year it is 10% a year.
>Does that formula extend to us that have 25 year old coaches? If so-
>mine's
>not worth anything??
>
>
>
>
>
>
>Ernie Ekberg
>83PT40
>Livingston, Montana
>
>
>
>**************Wondering what's for Dinner Tonight? Get new twists on
>family
>favorites at AOL Food.
>(http://food.aol.com/dinner-tonight?NCID=...0000000001)

[brad barton]

Bruce,

Thanks for considering it. No question laminate looks better longer than wood. The pecan in our FC looked as good at 14 years of age as it did when it was new. I am especially proud of our LXi'sclear maple cabinetry, but I would be happy with laminate. The other disadvantage of wood is that it can shrink with temperature, humidity and begin to rattle with age, although it's not been a problem in mine so far. I would expect BB would do a better job of joinery than Monaco which rattled and buzzed like crazy on a test-drive.

BradBarton00LXiDFW bbartonwx@...

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To: WanderlodgeForum@yahoogroups.com
From: birdshill123@...
Date: Mon, 5 May 2008 01:26:55 +0000
Subject: [WanderlodgeForum] Re: How to Price a unit you want to sell

Brad:

I would have pursued your unit but I have my heart set on laminate
cabinets. Thanks anyaway

Bruce

---

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[Don Bradner]

But, I suspect yours was more than 100K new, right? the 7179 is per 100K of
original price. Not that I'm suggesting 10% is a "proper" formula, just pointing
out the way it works.

Glad you and Bob could hook up.

On 5/4/2008 at 9:50 PM erniecarpet@... wrote:

>In a message dated 5/4/2008 7:47:08 P.M. Central Standard Time,
>bluethunder@... writes:
>
>residual of $7179.
>
>
>Don't think I'd sell my coach for that.
>Had an email from Bob Hatch. Should pick up the dry wash and guard on
>tuesday. Thank you,
>
>Ernie Ekberg
>83PT40
>Livingston, Montana
>
>
>
>
>**************Wondering what's for Dinner Tonight? Get new twists on
>family
>favorites at AOL Food.
>(http://food.aol.com/dinner-tonight?NCID=...0000000001)

[Leroy Eckert]

That is the underlying problem concerning depreciation and all those books. So here is some book s@#$ for you to ponder.

At 10% depreciation per year for 10 years, your coach is worth nothing. Right?? We all know that is not so. That may be good for tax purposes but not for much else. Certainly not you wallet.

In accounting, the "salvage value" or interchangeably used "residual value" of an asset is its remaining value after depreciation has occurred based on an established useful life. It is supposed to represent the net cash inflow that occurs when the asset is sold at the end of its useful life. Well, your coach has not yet met its useful life and neither has mine and if properly maintained will proceed for who knows how long.

So you try applying "intrinsic value" which is the actual value of the asset based on the underlying perception of its true value taking into effect all aspects of its components in terms of both tangible and intangible
factors. This value may or may not be an indication of current market value. Buyers and sellers establish market value based on emotions, desires and touching and feeling.

Plainly stated, if a coach is properly maintained and cared for it has an indefinite useful life so the likely event is the "residual value" will reach a stable point and even possibly climb some in future years based on if nothing more, inflation. That is, unless it is reduced to an ingot, it will never be worth nothing and will eventually reach a point in its life where depreciation is a mute point.

Whew,

Price you coach accordingly. lol

Leroy Eckert
1990 WB-40 Smoke N Mirrors
Dahlonega, GA
Royale Conversion
erniecarpet@... wrote:

In a message dated 5/4/2008 7:17:57 P.M. Central Standard Time, birdshill123@yahoo.com writes:

. I think after the first year it is 10% a year.

Does that formula extend to us that have 25 year old coaches? If so- mine's not worth anything??

Ernie Ekberg
83PT40
Livingston, Montana

---

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---

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[Jack and Liz Pearce]

Howdy, Bruce.

Well written. We had similar experiences when we were shopping for our WL. Took us 7 years. Sure hope that your search is shorter.

Best regards,
Liz
Regards,
Jack and Liz Pearce
Fulltiming in a 1993 Wanderlodge WB40




--- In WanderlodgeForum@yahoogroups.com, "birdshill123" wrote:
>
> As some of you know I am in the market for a newer Bird. Probably an
> LXI. I have spent a lot of time on the net looking and talking with
> sellers. Drove to Calif. to see an LXI and am heading to Atlanta and
> Florida to see a few more. I am a businessman and when I sell
> something the first thing you must do is use your head and not your
> heart. These are inanimate objects and if one is attached to this MH
> maybe one should not sell it. Of course some people are not sellers
> they are simply testing the waters. But if you really want to or
> need to sell a BB it has to be advertised properly. That means pics
> and description on the net. You would not believe the number of MH
> owners who think that 4 pictures of the exterior and a blurb about
> musical horns is good enough. I had one owner who was selling a unit
> at almost $100k over NADA tell me he was upside down and had to get
> what he owed. Others go to NADA and add in all the extras. This is
> wrong. Most DP's and especially BB's come almost fully equipped. You
> do not add in : AC's, awnings. micro, aluminum wheels, etc.. The
> sellers should add in things like upograded sound systems. LCD TV's,
> satellite dishes, etc. In most cases the NADA price without options
> will be close to what NADA claims the unit should be worth. But
> this price does not reflect the marketplace. Especially the current
> market. NADA is simply a depreciated from new price. Not an average
> of what BB's sell for. But it can be a valuable tool for a starting
> price. Then there are those who think that if they wait a year or
> more that prices will rebound!! HUH??? There are sellers, including
> a few dealers, who have had units for sale for more than 2 years.
> Wouldnt that be a hint that the unit is overpriced? These are not
> investments. They are high priced depreciating toys.
>
>
> Bruce
> 1988 FC35
>