7 Key Factors That Can Impact Your Mobile Home Value
To you and your family, your home is probably priceless. How can you ever calculate in numbers what it means to you? However, there are times when you will need to know the monetary value of your mobile home. You might be planning on selling your home or need to calculate the worth of your assets for financing. To do this, you need to know the key factors that influence your mobile home’s value.
Why should I know about mobile home value?
Part of being financially responsible is being aware of your financial position as influenced by your fixed assets like your manufactured home. Many people make the mistake of assuming that the value of their mobile home stays the same as it was when they bought it.
Unfortunately, this isn’t the case! The value of your mobile home changes over time. It can be increased or decreased through changes that you make or purely through the passage of time itself.
So, you should already see that there are a number of different factors that can influence the value of your mobile home. This makes it complicated to estimate or calculate the value of your home. 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 monetary worth of your home than others. These factors could also be either positive or negative.
In this article, we will have a look at these key factors. If you want to see how much a mobile home might cost you, we encourage you to read this article on our blog.
The value of your mobile home will be greatly influenced by its size. There are three main size categories into which manufactured homes can be organized. These different sizes come in their own price ranges.
Just like other types of property, the cost of the property is partly based on the square foot of your home as well as the number of rooms it has. In general, people also often prefer bigger houses and therefore these houses will often be valued more because of their size.
Single-wide manufactured homes are the smallest type of units. Homes in this category are up to 18 feet wide and are up to 90 feet in length. In square feet, they normally range between 600 – 1300. Because of this size, they are popular for couples or a single person.
As they are more compact, these homes typically have no more than four rooms. They usually have only one or two bedrooms. In addition to this, they have 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.
Double-wide manufactured homes are quite a bit larger than single-wides. They consist of two parts which are put together on site. In total, they have about 2000-2500 square feet and are up to 20 feet in width and 90 feet in length.
As a result of their size, the way in which space is used opens up 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.
Unlike the other categories, there isn’t a specific size range for triple-wide manufactured homes. Their size and shape are widely customizable which means their size varies considerably. They can be up to double the size of double-wide homes at around 4000 square feet.
Like their size, their pice can also be double that of other homes. The price for new triple-wides sits at about $100,000.
Looking back on the prices of new mobile homes you can see that there is a huge difference in the values of the different sized homes. This will need to be factored in when you try to estimate the value of your house.
As you can see a larger home is normally worth more. People often prefer bigger houses and will pay more for them. Bigger houses give you more space to live your lifestyle out the way you desire and this makes double-wide and triple-wide more popular.
The age of your manufactured home is definitely a crucial factor in determining how much your home is worth. This is partly due to the actual effect of time as well as the way in which an older home is perceived.
Keep in mind that according to national regulations, mobile homes are usually considered to be habitable for 55.8 years more or less.
Unfortunately, if your mobile home was built before 1976, this could be a dealbreaker regarding its value. Why, you might ask? In 1976, the HUD code was instated in the United States. The code sets out standards that are aimed at regulating the safety and build quality of manufactured homes.
Since then the term manufactured homes came in use to distinguish between these homes and other types of “mobile homes” like RV’s.
Homes that were built after this were made to meet these new criteria. They will definitely be valued higher than manufactured houses that were made before this date.You should also be aware that revisions to the code were made in 1997 and 1999. So if your home was built before then, you should check to see whether it is still compliant.
One important reason why newer manufactured homes will be valued higher is that it’s easier to get financing for them. It’s very difficult to get financing for mobile homes that don’t comply with the HUD code.
If you have bought or sold any private property like a car you would have probably heard about the dreaded concept of depreciation. This is a common problem with many types of property. Depreciation is a decrease in the monetary value of the property based on expected wear and tear to an asset during its lifetime.
Unlike “built” homes or real estate, mobile homes depreciate in value similar to other types of private property. This is largely because of the way in which they are constructed and their mobility.
A certain decrease in valuation due to depreciation is inevitable. This begins to apply as soon as you buy your home. In general, mobile homes depreciate at about 3-3.5% a year. Working out how much your manufactured house has depreciated can help you to fairly accurately determine the current value of your home.
For example, a home that originally cost $50,000 will be worth $ 41,000 after six years.
Just remember that there are things that can cancel out the decrease in value caused by the age of your house, such as upgrades, appreciation of the land, or increasing property value in the area.
Looking more outdated or modern
No matter the actual age of your mobile home, if it looks outdated or has outdated features it will probably 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.
Mobile homes that look outdated will probably be less desirable for many people. People want new and shiny things and often believe that they are better, even though this isn’t always true. When things look old it will raise concerns
This means most people will pay more for a home that looks more modern.
Things that might make your home look outdated are:
- The materials used.
- The color of your walls and how your home is painted.
- Fixtures like faucets and handles.
As suggested above, the curb appeal of your mobile home will certainly affect its value. This is as true for manufactured homes as it is for real estate. A more attractive appearance will probably increase the value of your manufactured home.
The appearance of your home’s exterior includes how well it’s maintained. The better the level of upkeep of your home the higher its value. Another reason why maintenance is important is that it can determine how long the home will last and whether prospective buyers will need to work on the home themselves.
Here are some features where maintenance can affect a mobile home’s value:
- Roof: As with other types of real estate, your 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 can also affect the value. This should be checked annually. Importantly, if your home isn’t leveled, it can cause other problems like cracks in the walls and can prevent your doors and windows from closing properly.
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.
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.
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.
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.
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.
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.
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.
What’s your mobile home worth?
Like you can see there is no one size fits all formula to work out your mobile home value. These features are key factors in determining the value of your home. If you want to increase the value of your home investigating them is a good place to start. There are also professionals that can help you to figure out how much your home is worth.