SELLING YOUR MOBILE HOME & HOW TO GET THE BEST PRICE
Selling a mobile home might seem easier than selling a traditional house but with little information available and almost no data transparency for the market, it is difficult for owners to find mobile home values accurately and fast. Therefore, most of mobile home owners either guess the value of their home or pay expensive valuation fees to get an estimate of the final mobile home sale price.
Mobile home pricing isn’t standardized and even new and older models can be priced differently. Even though you can do research to find listed values for similar homes to your own, it is time consuming and mobile home prices change radically from state to state.
As a mobile home owner, it is important for you to understand, that you must be able to research and make the best decision for your needs in order to get the highest profit from your mobile home sale. Your best options are to sell via the traditional retail market, which functions similarly to selling a home, or to sell through the wholesale market, where a broker will purchase your home for a wholesale price directly from you. These opportunities have their own pros and cons, distinctions and opportunities that you should take into consideration.
In most situations, selling is more cost effective than moving your mobile home, and allows you to earn the highest profit when you sell your home. This guide will help you to understand different valuation methods and markets so that you can make the right choice for your home.
MANUFACTURED HOME MARKET
As mobile home market value is influenced by every detail of your house so the market impacts the home’s value. Your local mobile home and real estate market can influence your mobile home’s worth greatly. Before you start searching for ways to add value to your mobile home, we advise you to research your local market’s current climate and how it changes throughout the year.
HOW TO DETERMINE YOUR HOME’S MARKET VALUE
To understand your local mobile home market, compare listings on real estate websites or even on Craigslist. You can also search for questions like:
- What is the average price for a mobile home?
- Which homes are selling for more than the average price?
- How long are the mobile homes sitting on the market? (a week, a day, a month, two days – get an idea of how fast you can sell a mobile home)
This information will help you understand wether your market is a buyer’s or a seller’s market, what is the demand for homes in your area and more. Analyzing the local manufactured home market can help you discover wether your neighborhood is seeing an increase or decrease in residents/interest in buying a mobile home.
MOBILE HOME LOCATION
One of the most important factors to determine your mobile home value is location.
If your location is not in demand in current market, there is little you can don to change that. The obvious solution will be to move a mobile home to another area has has more interest from buyers. Cost of moving a mobile can get very expensive, counting all the preparation work, moving cost per mile, permits that you will need to obtain to move and reinstall the mobile home. Depends on you home, the cost of moving a home can be higher than the price of the home itself and is also a time consuming process. For most homeowners, that is far too expensive and won’t be an option. Instead, do a realistic assessment of your home’s current location. Is it near good schools and shopping malls? Is it in a great mobile home community or out in the country by itself? Is it a peaceful place with no loud neighbors and low crime rates?
A mobile home that is near a high crime neighborhoods won’t have the same value as a home in a low rate one. Also, if you live in an area where good schools, stores, and recreation areas aren’t easily accessible, this will bring down your home’s value.
Sell Your Mobile or Manufactured Home On Your Terms
MOBILE HOME TYPE OF PROPERTY
Interesting fact that you can actually change the type of property you own! Yes, you read it right, you can change your mobile home from personal property to real estate.
MOBILE HOME AS REAL ESTATE VS. PERSONAL PROPERTY
From the moment MOBILE HOMES are manufactured, they are, well, mobile. Therefore, they have the same type of title deed that a vehicle would have and considered a personal property. Traditional homes, build on the ground from scratch, are real property, also know as real estate.
In other words, anything you can move from one location to another is personal property. Land obviously cannot be moved. Therefore, if a stick-built home is built on a piece of land it becomes part of the land and can’t be moved. It becomes real estate.
UPGRADING YOUR MOBILE HOME TO REAL ESTATE
So, how you could possibly change your mobile home from personal to real property?
Here are the steps to make your mobile home a real estate:
- buy land (property)
- affix your home to a piece of property that you own (via a concrete foundation)
- register your mobile home as real estate
Obviously, it’s a little more involved than that, but you get the idea. This is a great way to add value if your mobile home is still mobile and but comes at cost if you don’t own land By converting it to real estate, its value will increase significantly. Real estate is always more valuable than personal property so take advantage of that if you can.
MOBILE HOME UPGRADES
Before you start implementing any updates, it’s important to make sure that the money and time you are willing to put in actually make sense. When it comes to mobile homes it might be a better decision to sell it as is and get a better home in your new desired location.
Don’t forget to take into account any upgrades you’ve made while living there!
Upgrades can include new or better appliances, flooring, roofing, a fireplace, or a porch. Anything that you’ve replaced with something better adds a little to your home’s value. Mobile homes are manufactured factory-style, the materials used are low-grade compared to a traditional, stick-built home. If you recently replaced all of the wall panels in your home with sturdy drywall, your potential buyer will appreciate that.
CURB APPEAL AND OVERAL MOBILE HOME AESTHETICS
Curb appeal is one of the selling points to most buyers, just like upgrades inside your home. If your mobile home has nice skirting, a trendy siding color, and a roof that’s in good shape, that adds to your mobile home value. You’ll improve the home even further if you invest in stick-built grade siding.
Inside and out, fresh paint is crutial to instantly fix up the space. Installing better molding, installing better windows are also great ways to put a new spin on the traditional mobile home. Anything you can do to make it seem a little bit more special and unique is good.
A pro tip: you might try staging a home or take more pictures / videos, so a buyer can make a faster decision.
WHY SHOULD I UNDERSTAND MY MOBILE HOME VALUE?
Most people make the mistake of assuming that the value of their mobile home stays the same or grows as it was when they bought it.
Unfortunately, this isn’t always the case. The value of your mobile home changes over time and it goes both ways.
So far we went over a number of details that can influence the value of your mobile home. This makes mobile home value estimation complicated already. But we are not over yet! In addition, the different aspects can either add up or can cancel each other out.
Certain factors play a more prominent role in influencing the worth of your home than others. These factors could also be either positive or negative. If you want to see how much a mobile home might cost you, we suggest you to read this article on our blog.
MOBILE HOME SIZE
One of the most obvious value determining factors when it comes to mobile homes is their size. The value of your mobile home will be influenced by its size. There are three main size categories into which manufactured homes can be grouped into, each with their own price ranges.
Just like other types of property, the cost of the mobile home relies on the square foot of your home and the number of rooms it has (along other factors). In general, bigger houses are often valued more because of their size.
SINGLE-WIDE MOBILE HOME
Single-wide mobile homes are 18 feet wide and are up to 90 feet in length; usually in a range of 600 – 1300 sq feet.
Even though the single-wide manufactured homes are the smallest type of units, they are in a great demand due to the easier mobility, upkeep and lower ‘maintenance’ fees. The best choice for couples or a single person.
As these homes are more compact, they usually have no more than four rooms: one or two bedrooms, a bathroom, and a kitchen or a combined kitchen and living room.
Due to their smaller size and difficulty in obtaining financing, they are normally valued far less than other types of manufactured homes.
New single wides cost about $50,000 which is significantly less than the bigger types and older ones can be valued of less than $5,000.
DOUBLE-WIDE MOBILE HOME
Double-wide mobile homes are usually in a range of 2000-2500 square feet and are up to 20 feet in width and 90 feet in length.
Due to their size, there are more possibilities which makes them very popular. Their bigger size also comes with a bigger price as a new one costs between $70,000 and $80,000.
TRIPLE-WIDE MOBILE HOME
Triple-wide mobile homes do not have a specific size range. Their size and shape are customizable which means their size varies considerably. These homes can be up to double the size of double-wide homes at around 4000 square feet.
Price for a triple-wide home can also be double that of other homes, and might be over $100,000 in certain cases.
As you can see, here is a huge difference in the values of the different sized homes that should be factored in to estimate the value of your house correctly.
Bigger price tags go to more space and better quality of the manufactured home. Families usually prefer larger houses and willing to pay more for them. Bigger house gives means more space to live your lifestyle the way you desire and this makes double-wide and triple-wide popular.
MOBILE HOME AGE
Another crucial factor in determining how your mobile home worth is it’s age, naturally due to the actual effect of time as well as the way in which an older home is perceived.
Important to notice that according to national regulations, mobile homes are usually considered to be habitable for 55.8 years more or less.
PRE-1976 MOBILE HOMES
Unfortunately, if your mobile home was built before 1976 (and even 1999), it is not as valuable.
How come??
In 1976, the HUD code was instated in the United States. HUD code standardizes safety regulations and build quality of manufactured homes.
Since then the term manufactured homes came in use to differentiate these homes and other types of “mobile homes” like RV’s.
Mobile Homes that were built after 1976, when the HUD code was implemented, were made to meet these new criteria. They will definitely be valued higher than manufactured houses that were made before this date.
Please note, the HUD code was revised in 1997 and 1999. If your home was built before then, you should check to see whether it is still compliant.
Another factor that makes newer manufactured homes valued higher is that it’s easier to get financing for them. On the other hand it’s very difficult to get financing for mobile homes that don’t comply with the HUD code. If you want to sell a mobile home built before 1999, your best bet will be to sell it to a cash mobile home buyer in your area.
MOBILE HOME DEPRECIATION
If you ever bought or sold a car or other property you probably heard about the concept of depreciation. Depreciation is a decrease in the monetary value of the property based on expected wear and tear to an asset during its lifetime.
Unlike traditional real estate, mobile homes depreciate in similar to vehicles. This is largely due to their construction and mobility. Depreciation starts as soon as you buy your home. In general. Understanding how much your manufactured house has depreciated might help determine the current value of your home better.
Mobile homes depreciation rate is about 3-3.5% a year.
For example, if you bought a home for $50,000 six years ago, it will be worth $41,000 today.
Just remember that there are things that can minimize the depreciation, such as appreciation of the land, if you own it, or increasing property value in the area.
OUTDATED OR MODERN LOOKING MOBILE HOME
Actual age of your mobile home doesn’t matter, if it looks outdated and it might be valued less. In the eyes of potential buyers (or a professional who can evaluate the worth of your home), appearance is taken into account.
Manufactured homes that look outdated are less desirable in buyers eyes. People love new and fresh things and often believe that they are better. When a home look old it might raise concerns. A private buyer will pay more for a home that looks more modern, but a mobile home buyer (local investor) will gladly buy your mobile home for cash as is.
What potentially can make your home look outdated:
- The materials used
- The color of your walls and how your home is painted
- Fixtures like faucets and handles
- Exterior appearence
MOBILE HOME UPKEEP
Good mobile home maintenance is very important, for both, the appearance of your home’s exterior can significantly influence the price a mobile home buyer is willing to pay. The better the level of upkeep of your home, the longer you home will last, the higher its value.
Main areas that need decent maintenance:
- Roof: mobile home’s roof should be regularly resealed or recoated, events like storms can also cause more severe damage
- Walls: The upkeep of your walls (paint, wallpaper or panels) is essential to the way in which your home is perceived.
- Level: The leveling of your mobile home should be checked annually. II your home isn’t leveled, it can cause serious damage like cracks in the walls and can prevent your doors and windows from closing properly.
ADDITIONS
If you have made additions to your home, you could be in luck. Many additions can increase the value of your house. These could be features like replacing window frames or door frames with higher quality ones or adding fixtures like beautiful trims, eaves or awnings.
You will have more options with regards to this if your manufactured home is fixed to the lot in some way or if you own both the lot and the home. Something like a lovely and usable porch can definitely up the value of the house.
Not only could these high-quality additions add to the aesthetics of your home, they can also add to its utility. So the time and effort you put in will finally pay off.
INTERIOR
Do not forget the interior of your home when you appraise the value of your home. It can be equally important in deciding what your home is worth. This will mostly apply to fixed features and fixtures in your home.
DESIGNER KITCHEN
A kitchen is often seen as the heart of a home. This means that it’s an important factor in picking a home for most people as they will spend a lot of time here. Having a modern, functional, and appealing kitchen can be a big selling point.
Kitchen cabinets, islands, and counters are all fixed features in a house. The more modern and luxurious they look, the better. There are also many built-in kitchen appliances that can do the same if they are in a good working condition.
OTHER ROOMS
Cupboards and cabinets in other rooms of your house can also lead to an increase in value. If you have ever had to look for a new home you know how scarce adequate cupboard space is.
Many of the same aspects that are important outside your home, like the trim and paneling, are also significant here. The interior of your home should be well maintained, especially the bathroom and kitchen drains, the floors, ceiling, and any wooden surfaces.
APPLIANCES OR SYSTEMS
Another thing that can negatively or positively affect the value of your manufactured home is the systems or appliances that are installed. This refers to fixtures like an air conditioning system, central heating, and the water heater. If these are missing or not well maintained it will cause your home’s value to take a slight hit.
Fixtures like plumbing need to be taken into account. It should be functioning as expected and all visible parts of it should be in good condition.
ENERGY-EFFICIENCY
The energy-efficiency of your home will definitely play a role in determining its worth. The more energy-efficient a home is, the more it will increase its value.
Many prospective buyers will prefer this as it’s more eco-friendly and it will save them money in the future. This can significantly affect the way in which people view a property.
In terms of energy-efficiency, little things like having insulated doors or windows, properly installed insulation, and a roof membrane add up.
Related post: Steel Siding vs Vinyl Siding for Mobile Homes and Vinyl Siding Cost
PROPERTY
MOBILE HOME PARK
The mobile home park in which your house is situated could impact its individual value. If you own a lot in the park or your home is fixed to a lot the impact of this will be magnified.
Perceptions about the neighborhood in which a mobile home is placed is a key factor in this regard. Is it safe? Is it a desirable area to live in?
Whether or not the park has extra amenities like a pool can add value.
LOT
If you own a mobile home as well as the lot it stands on, the value of your home will be higher. While your manufactured home’s value can depreciate, land usually appreciates. Thereby an increase in the value of the lot itself can help to cancel out any loss of value or even lead to a slight total increase.
Features like the size of the lot influence its value and therefore indirectly the value of your mobile home. The location of the lot could make a world of difference as it does with real estate. As with your manufactured home itself, upkeep and appearance of the lot are also important.
THE VALUE OF YOUR MOBILE HOME
Mobile homes sell for various prices which are affected by the mobile home itself, the lot, the condition, the park, the community, original manufacturing standards, the size, category, and even whether you’re including furniture in the sale. Because there are so many variables, most online quotes are an estimate and won’t reflect the full actual cost of sale. However, you can check the value to decide how much you can sell it for using one of two methods; market value and appraisal.
APPRAISAL VALUATION
A full appraisal will give you a much better idea of what your mobile home is worth on the retail market, but it will not be cheap. Most appraisals cost between $250 and $400 and include a full inspection where the appraiser will examine the square footage of the home, the condition, the park, the heating and cooling, and details about the park, and other factors to create a detailed report that reflects repairs, issues, and a general overview of the retail value. Real-property mobile homes are appraised using the Uniform Residential Appraisal Report, Form 1004C. However, if you rent a lot at a mobile home park, there is no standardized form for appraisal. There is always things you can do to protect yourself from low ball appraisals.
No matter what your market value or appraisal, you should be cautious about setting your asking rate. The actual sales value for mobile homes can vary a great deal and can range from as little as a few hundred for very old homes that cost owners too much in monthly rental fees to over $250,000 for triple wide or larger homes on owned property. (You have to take these factors into account when comparing your home with another. Our reports simplify this for you by only comparing your home to homes similar to yours. We match your home up with similar homes, in your market, so you can be confident that you’re not selling yourself short.)
Final sales prices typically range between $5,000 and $15,000, the exact rate will change a great deal depending on your specific home, your local market, the park, and other details. Used double and triple wide homes can sell for significantly more, as they hold their value better, but are often more difficult to sell because the asking price is higher.
However, no matter what your situation, your final price will ultimately depend on your market and how you choose to sell your home. One of your most important decisions will be whether to sell retail and list the home yourself or sell directly to a broker for a wholesale price, and each option has its own pros and cons for costs.
RETAIL MOBILE HOME VALUES
Selling a mobile home yourself means either connecting with a real estate agent or listing the home yourself, marketing, showing the home, handling paperwork, getting permission from the park, and if you’re moving away before the sale, continuing to pay rent and fees for the home. Just like with selling a house, you set a price, accept bids from interested buyers, and eventually make a deal to sell the mobile home. You keep all the profit, and you get the maximum sale price for the home.
Just like with selling a house, you set a price, accept bids from interested buyers, and eventually make a deal to sell the mobile home. You keep all the profit, and you get the maximum sale price for the home.
However, while this option is outwardly advantageous, retail sale has a number of disadvantages that you should be aware of before you choose to sell your mobile home in this way.
MARKET VALUES
Most people choose to do a significant amount of comparison research online to see what they can sell their mobile home for. Chances are, you’ve already looked around to see what mobile homes are selling for and may even have an idea of what your home may be worth.
Unfortunately, this kind of sales comparison won’t always work. First, you have to factor in homes that are in similar condition, with similar upgrades and size. Typically, unless the home is in the same mobile home park, from the same year, with the same upgrades or modifications, a single online listing won’t accurately reflect the sales value of your home. You need to compare with several homes in order to get an average asking price range. The more homes you can compare the better.
You can use these listings to get a ballpark figure of the asking price you may want to try when listing your home for sale. It’s also important to remember that your manufactured home may not sell for the asking price you set. However, you’ll have a much better chance if your price range is competitive.
Market Demand – If you’re in an area with a high volume of mobile homes on the market, you have a much smaller chance of getting your asking price if it’s higher than others in the area. In most areas in the United States, the number of used mobile homes outstrips the market, meaning that there are more sellers than buyers, which also means that you might have to reduce your price a great deal to make a sale. On the other hand, if there are only a few other sellers, your chances of getting your asking price are much higher. Performing the necessary due diligence will limit the chances of under pricing your home.
The primary benefit of using the retail market is that you can potentially earn more money by getting the full retail price. However, it is not guaranteed, and you have to consider the factors that affect the pricing to see your actual profits.
- Age: Older homes lose value, are more difficult to finance, and typically sell for much less.
- Make and Model – Some brands are more desirable than others. If you are going through a real estate agent, your mobile home will be assigned to First Tier or Second Tier for pricing based on the make, model, and manufacturer.
- Size – The size, number of bathrooms, bedrooms, etc., will affect the sales price.
- Condition – The better the interior and exterior condition of your home, the higher the value.
- Improvements – Have you factored any improvements or upgrades into the cost.
- Problems – Are there any issues or problems? Old appliances, leaks, loose boards, and damage all lower the sale price of the home.
- Park Rental – The park rental fee will affect your ability to sell. Check with the park manager to see if there will be a fee increase for the new owner, and factor that into your sales price.
- Community – A quality community will raise the asking price for your home, so be sure to factor in amenities and services offered by the park.
- Time to Sell – Your mobile home may take anywhere from a few months to over a year to sell. Most buyers will consider all of their options, including regular homes, before purchasing a mobile home, and you will likely have to sit through several house showings, several inspections, and multiple price negotiations before making a sale. Most interested buyers will hire an inspector to review the home and use that inspection to place their bid. In most cases, it is very difficult to obtain financing for a used manufactured home, especially on a park lot, so most banks won’t help your buyers to make the purchase. This can considerably slow down your time to sale, simply because buyers must either take out a high-interest loan or come up with the capital in cash in advance. This difficulty stems from the fact that mobile homes are considered property and typically registered as motor vehicles, even though most of them are never moved.
- Costs – There are numerous costs associated with selling your mobile home and you should factor them into your final decision. You can typically choose to either sell the home yourself, which usually takes longer unless you have a friend or family member who is willing to buy it, or use a real estate agent, who will help you to prepare, photograph, and list your home to find buyers. Most realtors typically charge around 6% of the final sale value in fees. However, not all realtors are willing to work with mobile homes, so you may be forced to handle the sale on your own.
- Park Rental – If you are unable to live in the mobile home until the sale, you must factor direct park rental costs into your calculations. While you probably already know the rates you pay, the average park charges between $180 and $300 per month for the lot. This will add up significantly if you take a year or more to sell the home. You also have to factor in required repairs, any maintenance on the home during the period, whether or not you have to continue to pay for utilities, and any other demands (such as insurance) put on you by the park.
- Marketing – If you are selling the home yourself, you will have to pay for marketing out of pocket. While there are free and low-cost marketing resources, you should factor marketing in as a cost.
GETTING PERMISSION
The most difficult step to selling a mobile home in the retail market is getting park approval to complete the sale. Most parks will deny your request to sell if the buyer has poor credit or a criminal background or if your home needs repairs. Parks often have a checklist of “fixes” that must be completed before they will approve a homeowner’s sale.
You should also consider that many mobile home parks have their own homes and developed units for sale. This means that your sale may be directly competing with the interests of the park and the manager may actually steer potential buyers away from your mobile home and towards a vacant home that they are selling themselves. This can greatly increase your sales period, especially considering that selling yourself means finding someone who wants to live in your park and competing in a market that is usually tilted towards the buyer and not the seller. Because there are more mobile home sellers than buyers, the process can take a long time, even without competition.
After the sale, you will still owe realtor fees (if applicable), possible attorney fees (for the paperwork), any taxes, any money that you still owe on the home, the cost of title work, and any repair costs or standing dues against the home.
When should you use the retail market? If you are confident in your ability to sell your home quickly, have a newer model home in a quality park, and can get permission from your park manager, you may be able to make a profit. However, it is important that you take the time to review your costs to ensure that retail will earn you the most money.
SELLING A MOBILE HOME WHOLESALE
Wholesale is the process of selling your mobile home to a broker who will move the home and then sell it to a buyer to be provided at a lot of their choice. This option is advantageous for a number of reasons and can be the better option for many mobile home owners. Like with retail, there are several considerations and drawbacks and you should take care to consider all of your options before you make a decision.
Wholesale allows you to sell quickly and without the hassle and additional costs of retail, but for a significantly lower price.
MARKET VALUES
Most wholesalers will inspect your home and then make an offer based on the same conditional factors you would include during pricing a home for the retail market. However, this bid is usually significantly lower because of several factors. Most wholesalers must move your mobile home off of the lot in order to purchase it and sell it elsewhere, meaning that they must take on high moving costs for transportation, permits, licenses, unhooking utilities, and prepare a new lot in another location. These costs can be high, and they are all directly subtracted from the offer that the wholesale broker will make to you.
Most wholesale buyers also don’t pay retail price, which means that the final value will be lower than the retail, even for the wholesaler. While the price you are quoted will vary depending on the moving costs associated with your home, it will be lower than retail value. However, you can greatly benefit if you are living in a less than ideal area, as brokers do not factor in the condition of the park, amenities, or the community, only the mobile home itself.
IN HURRY TO SELL?
One of the largest benefits of wholesale is that you can sell your mobile home very quickly, sometimes even on the same day you receive the offer. This can be very advantageous if you need funds quickly to handle other financial issues or to put a down payment on your new home in another location. In some cases, brokers will be willing to purchase your mobile home upfront and allow you to move out at an agreed-upon date, which gives you the time to use the money to put a downpayment on your new home. When looking for an accurate mobile home values estimation, speed quickly changes the value based on how long you are willing to wait.
Sell Your Mobile or Manufactured Home On Your Terms
COMPARING THE SALES PROCESSES
Unlike with retail where you must market, show the home, and ask permission from the park, selling wholesale is fast and painless. The wholesaler will offer a rate and if you accept they will immediately close the deal. This sale will go through instantly and parks cannot stop the sale due to repairs needed and cannot deny the sale as the home will be moved off the lot. You also won’t need an attorney or park mediation, because it is a two-party sale between you and the broker. At times, parks will implement a First Right Of Refusal, where you are required to give the mobile home park the chance to match any purchase agreement you enter into. This is often misrepresented in order to make the homeowner believe they are not allowed to sell their home to a buyer who plans to move the home. If this is what you have been told, please contact us and we can help you navigate through the sale in a way that won’t get you into legal trouble.
Selling your mobile home directly to a broker allows you to make a sale quickly, avoid issues with the park, get money quickly, and move on with your life. While you will earn less money upfront, you won’t have to worry about additional fees, park issues, or waiting a year or more to sell your mobile home, and you might walk away with more profit. Direct sales are ideal if you can’t sell quickly, have high rental fees to consider, or need the money from the sale upfront to invest in a new home or opportunity.
A WORD ABOUT DEPRECATION
Deprecation is a combination of all of the other factors we’re talking about today. It includes everything from location and market to age and cosmetics. We’ve already touched on all of those, but since depreciation in mobile homes is such an important subject and has so much bearing on your mobile home’s value, it’s worth explaining.
Depreciation is the decline in value of an asset (like your mobile home) or a piece of real estate. You’ll hear the word “depreciation” all the time when researching your mobile home’s value. That’s because mobile homes depreciate much faster than stick-built homes, apartments, and other real estate. Whereas stick-built homes can last for many, many decades, mobile homes are only expected to last about 30 years.
IT’S NOT THE END
Combined with the other factors that influence your mobile home’s value, age can be a death-knell. And sadly, there’s not much you can do about it. Mobile homes are meant to be temporary. Time takes its toll. As we’ve seen today, however, there are ways to make up for it. By adding value, you can extend a mobile home’s lifespan of usefulness.
Even if a mobile home is getting older and depreciating quickly, it can still be a comfortable home for your future buyer. Used mobile homes are in high demand: they’re affordable, economical, and cozy. Many people need temporary homes when they move for jobs, school, or to be close to family. Instead of renting, purchasing their own little mobile home may be quite attractive.
NEW VS. USED
We would be remiss not to mention the difference between a used and a new mobile home. If you’ve lived in mobile homes for any amount of time, you know the difference. You may have firsthand experience with the depreciation rate of mobile homes.
If you bought your mobile home new and are now selling it used, it’s harder to make a profit with any amount of upgrading. Used mobile homes go for far less money on the market than new ones. Because of their shorter lifespan, mobile homes that are just five or ten years old have far less value than brand-new ones. For example, a new single-wide could sell for around $40,000 or $50,000 while a used single-wide can sell for only $10,000 or $25,000. You can see what a dramatic difference that is!
That’s the bad news. The good news is, if your mobile home was already used when you bought it, you stand a better chance of making a profit. Chances are, you have already made improvements. Or maybe you renovated it before you moved in. If so, you’re a step ahead.
APPRECIATION
The reason you’re here reading this article is that you want to make a profit when you sell your mobile home. You’re not here to listen to depressing definitions of depreciation! Thankfully, there are a few ways to make back your money (plus more, hopefully). We’ve talked about some of them today. Upgrading your mobile home to real estate. Upgrading in smaller ways to increase the functionality of the home. Cleaning up, painting, and adding curb appeal.
In real estate, value that is added to an asset is called appreciation. Sometimes mobile home owners accidentally hit the jackpot and move to a certain area of town before it’s trendy. Next thing they know, everyone is moving to that neighborhood and houses are simply flying off the market. That might happen to you, so it pays to do some market and location research.
In smaller ways, however, you can deliberately add value to your mobile home. Most people have to resort to this method because most don’t just “get lucky” as described above. So, if you have to put time and effort into increasing your home’s value, you’re not alone. Like other responsible homeowners, if you put in the work to make your home a comfortable and beautiful place, your mobile home will be worth every cent your buyer pays.
TAKING CONTROL OF YOUR HOME’S VALUE
Even though there are circumstances that are out of your hands – such as depreciation, the home buying market, and location – there’s still so much you can take control of when it comes to your mobile home’s value. If you care for your home, you’ll make it that much more attractive to a buyer. Be strategic, and you might just sell your mobile home with a tidy little profit besides.
There are so many factors that influence your mobile home’s value. It can be overwhelming. For that matter, selling your home can in itself be overwhelming! If that’s the case for you, check out these 12 ways to combat fear when selling your mobile home.
And if you’re looking for even more ways to make your mobile home an attractive buy, stand out from the competition by following these 11 tips. Don’t give your home a chance to depreciate! Take control of your mobile home’s value.
CHOOSING YOUR SALES PROCESS
Selling your mobile home means making key decisions regarding how, where, and how quickly you want to make the sale. If you want to make the most profit, you should sit down to consider your options, do the math, and make a decision that offers the most value to you. Because the average time to sale is 9-12 months and sometimes longer for a mobile home, you should calculate at least a year’s worth of park fees, any repairs that you might have to make, the cost of maintenance for the home over that period, advertising, marketing, and other details.
Hopefully, this helps equip you with the information needed for understanding the different markets assessing mobile home values. There are also professionals that can help you to figure out how much your mobile home is worth. US Mobile Home Pros is committed to giving you the best resources so that you can make an informed decision.
We wish you all the best selling your mobile home.
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