Does my manufactured home hold value? Can it appreciate? How do I know if it does? Have you ever worried yourself over these questions? Then worry no more! While there isn’t one simple answer to these questions, there are a few ways to find out, and those ways are not too hard.
We’ll start with this backward by first answering the question, “can manufactured homes appreciate?” After answering that, we’ll move on to “do manufactured homes hold value?” Appreciation is a hotly debated topic, with few definite answers, but there is good news. With a few tweaks, it’s possible for your mobile home to appreciate like a stick-built home! Let’s take a look.
Ordinarily, when you hear the word appreciation related to mobile homes, we aren’t talking about how much you love your mobile home. Though you might be very devoted to your living space, we’re actually talking about a different concept — one that’s a bit more technical. And for technical things, there’s nothing like a good old dictionary definition. Dictionary.com offers this as one meaning of the word:
“Appreciation – an increase or rise in the value of property, goods, etc.”
So, that helps us see how appreciation could be related to mobile homes. If you purchase a mobile home and you want to know if its value could increase, you may be wondering about appreciation.
As an example, in a recent article by urban.org, they go over the evidence that shows that manufactured home can appreciate just as well as site-built homes. How do you know if this can be your home? Let’s talk about a few ways to help ensure the appreciation of your manufactured home.
We’ve all heard the age-old realtors’ mantra, “location, location, location.” While you roll your eyes at this, you may be pushing aside one of the most important aspects of mobile home appreciation, and value. What exactly does that saying mean though? In essence, it means that based solely on location, homes can experience huge increases or decreases in value.
For instance, if your manufactured home sits on land that you own, that’s likely to turn out better for you. Leasing or renting property is just another expense that has to come out of your pocket on a monthly basis. Additionally, the $300 that you would be spending every month to keep your house where it is can be saved, or put towards other important things, such as the upkeep of your home.
As we mentioned in the previous paragraph, by owning the property your mobile home sits on, you can use what would have been rental money, to keep your house in good condition. A manufactured home in good condition will significantly up the value, which we’ll talk about in a moment.
Obviously, every house is going to experience problems as it gets older. That’s why regular maintenance will keep your house worth more. Incidentally, frequently checking on common problems, and fixing them right away will always be good. Simple renovations include plumbing, electricity, foundation, and numerous other areas of your mobile home that may be subject to damage. Your mobile home has probably served you well, and if the walls could speak, no doubt they would loudly protest you letting your house fall into shambles.
Now let’s take a look the question, “do manufactured homes hold value?”
A manufactured home in good condition does hold value and will continue to hold value if maintained properly. Thus, it’s important to keep up with house repairs, and also to keep an eye on your land. The aesthetics of any home, manufactured or not, are extremely important, not only to your neighbors but to any prospective buyers, if you plan on selling one day.
The age of your home is an important factor in the value of your home. As mentioned in this article about value on our blog, because of a HUD code instated in the United States that was meant to regulate the safety and overall quality of mobile homes, houses built after 1976 “will definitely be valued higher than manufactured houses that were made before this date.”
Obviously, though, nothing can compare to the sentimental value that you attach to your manufactured home. For a single person, this is where you took your first footsteps in becoming independent. To parents, this is where you raised and are raising your kids. For the elderly, this is where your whole life happened. Therefore, don’t underestimate the amount of value that your home has to you, more so than anyone else.
Making your house a home
As we finish exploring the question, “do manufactured homes hold value?” don’t forget: you know your home is more than the materials it’s made of — it’s the place where your heart is. Thus, even as you try to add value to your mobile home (through renovation, perhaps), don’t forget to have fun there and make memories.