Mobile homes are some of the best valued homes on the market. They are a type of manufactured homes, anchored to a specific spot in a mobile home park. Usually, these parks have a number of resort amenities and require payment of a monthly lot fee. If you want to buy one, or you want to sell one, it is important that you know how to obtain the value of a mobile home. This is also because they are so different from other types of homes.
How to Obtain the Value of a Mobile Home:
Generally speaking, mobile homes have a limited lifespan of between 50 and 75 years. They come in many different sizes and with varying interiors. They are not unlike cars, in other words, and the transaction is actually very similar. Unlike with a house purchase, you don’t have to put money in escrow, although you do have to pay lot fees and property taxes, many of which are monthly payments.
When you learn how to obtain the value of a mobile home, you will probably also notice that prices depreciate quite significantly. Again, this sets it apart from regular homes. This is in part due to the fact that you may own the mobile home but you don’t own the land on which it stands. What this also means is that you will almost always lose money on your mobile home once you start to sell it.
Increasing the Value of a Mobile Home:
Mobile homes have gotten a bad reputation, with the entire world knowing them as “trailer parks” and with the perception that people who live there are lowlifes. In reality, however, nothing could be further from the truth. You can turn a mobile home into something absolutely fantastic. In Florida, for instance, most people add a carport (not a garage) to their mobile homes, as well as a Florida room, which is a screened patio. Doing so also significantly increases the value of the mobile home. Location, location, location is always key, regardless of whether you are buying/selling a regular home or a mobile home.
So What Is the True Value of the Mobile Home?
Generally speaking, mobile home listings are hugely overpriced. However, that also means that you should be able to bargain a discount of around 25%, which will give you a clearer indication of the true value of the property. You also have to consider the impact of location, since lot fees can be quite expensive, which could leave some people in a no deal scenario.
There are many different factors that come into consideration when working out the value of a mobile home. These include:
- The basic structure value, which is the retail value of the mobile home
- The location of the home
- The condition of the home
- How much life is left in the home
- Any additional features the home has
- The industry standard
As you can see, there are a lot of different factors to consider, and only you can determine what you are willing to pay for. While it is always down to a personal choice, there is one word of advice that you should always follow. This is the advice to only purchase post-1976 mobile homes, because their construction has been mandated by HUD.