Thinking about selling? The first step is finding out how much your manufactured home is really worth.
The answer is that it depends. There are many factors that go into determining the price a manufactured home can be sold for. One such factor is the age of the home.
The age of a home is a huge deal when it comes to mobile and manufactured homes. Every year the home loses value. It depreciates regardless of repairs made or how well kept the home has been. In fact, the only way to stop this depreciation is to place it on private property. If the permanent location is in a mobile/manufactured home park, it loses value.
Bedrooms also are a major factor in determining the value of a manufactured home. Obviously, the more bedrooms, the higher the price. A mobile home having three bedrooms are a big ticket item. As the size of American families increases, many people are looking for a manufactured home with plenty of room for the kids. Two bedrooms are in less demand, but still offer a growing family some wiggle room. An interested buyer might see your home as a short-term investment with plans to upgrade in the future. One bedroom manufactured homes are in very low demand. Your buyer pool is so limited that it can be a nightmare trying to sell them. Frankly, if you have a one-bedroom manufactured home, it’s going to be difficult to sell.
Bathrooms are another influential factor in determining the value of your manufactured home. Like bedrooms, the more bathrooms you have, the better your chances are of selling your home. Two bathrooms are very attractive to buyers for obvious reasons. One bathroom homes aren’t as hopeless as one bedroom manufactured homes, but does lower the value.
The overall market is often overlooked by people when determining the value of their home. The mobile/manufactured homes market is saturated with sellers and there are few qualified buyers. There are several reasons for this: One, banks rarely touch older manufactured homes. It’s not considered to be a “safe” investment. The bank loans out $10,000 dollars for a home, which in a year will only be worth $9,000. This is too big a risk since, even if they get the home back, they wouldn’t be able to sell the home for what they lent initially.
Second, the mobile home parks tend to be very selective about who qualifies as a suitable tenant. They require a certain credit score or a proven co-signer for an applicant in order to be considered for acceptance. This process, though good for the parks, eliminates a number of people from your pool of prospective buyers.
Third, the housing market (stick built) is at the lowest point in decades. Many homes seekers who, at one time, were only able to afford a manufactured home, now have the ability to purchase a home in the suburbs for a fraction of what they once cost. Home buyers see them as a better investment in the long run. Overall, it’s becoming harder and harder for manufactured homes to hold their value.
We haven’t even mentioned the condition of the park where the home is located. These days parks are moving toward replacing existing older homes with newer, nicer looking manufactured homes. Manufactured homes that was erected prior to 1987 are no longer accepted by many parks. This has an effect on the value of your home. Yes, people are seeking newer homes, but they also want to have newer homes as neighbors. Like any neighborhood, if you are located in a park with some older mobile homes sprinkled throughout, your home will likely fall in value based on the value of its surroundings.
In conclusion, there are several factors to consider when placing a value on your manufactured home. Try to think like a buyer and price your home accordingly. To help you with this, we can give you an estimate of what we would be willing to pay you for your home.