Mobile Home Depreciation: Do they? Why So? [Answered]

One of the significant debates surrounding traditional houses versus mobile homes is whether or not the latter will depreciate faster. In this article, we discuss how much truth there is to this and the factors that affect your mobile home’s value.

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But few people know why this happens. We are going to answer the common question why do mobile homes depreciate?




WHAT IS DEPRECIATION?

Depreciation refers to how much of an asset has been used up. When it comes to your mobile home, this generally means it won’t be able to sell for as much money as you spent when you first bought it. However, some factors help your used mobile home hold more value through the years.

DO MANUFACTURED HOMES APPRECIATE OR DEPRECIATE IN VALUE?

Manufactured homes can either appreciate or depreciate. This depends on how well it has been maintained, its location, the market conditions, and so much more.

In fact, the median value of mobile homes continues to increase over the years as the demand for more accessible and affordable housing rises. It also helps that modern manufacturers incorporate advanced features that make mobile home living no different than traditional houses.

Do manufactured homes appreciate or depreciate in value?

Manufactured homes can either appreciate or depreciate. This depends on how well it has been maintained, its location, the market conditions, and so much more.

In fact, the median value of mobile homes continues to increase over the years as the demand for more accessible and affordable housing rises. It also helps that modern manufacturers incorporate advanced features that make mobile home living no different than traditional houses.

Do manufactured homes hold value?

Taking a few variables into consideration, it’s possible for your mobile home to appreciate like a stick-built home! Below, we explore the factors that can either increase or decrease your home’s worth.

LOCATION

Based solely on location, mobile homes can experience huge increases or decreases in value. The closer your property is to offices, shopping centers, hospitals, restaurants, schools, and more, the higher you can expect its value to go up.

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CONDITION

Everything will experience wear and tear over its lifetime. The effect is usually much worse on any asset that you can move around.

However, regular maintenance, fixture upgrades, up-to-date plumbing, foundation reinforcement, and the like can all help hold, if not increase, its overall value.

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.

AGE

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.”

DEMAND AND SUPPLY

Market conditions for mobile homes can affect how much your property is worth. For instance, if the demand for manufactured houses exceeds the available supply, the value is higher. However, if there is an oversupply with little demand, they may sell cheaper.

TYPE OF PROPERTY

Manufactured homes can either be real property or personal property. The main difference between the two types is that the former is affixed to a permanent foundation, while the latter is not.

Real property is regarded more like a stick-built house and therefore has a higher chance of appreciating quicker due to the land factored in.

White house with deck and fence

WHAT ELSE IMPACTS YOUR MOBILE HOME VALUE?

The above are the most significant reasons mobile homes lose or gain value over time. But they aren’t the only factors. Rates of depreciation and appreciation are also affected by:

  • Inflation
  • Initial price paid 
  • Whether the owner will sell it with a lot or not
  • The community in which the owner has parked the home.

 




 

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SELLING YOUR MOBILE HOME: RETAIL VS WHOLESALE

You have two main options if you want to sell your mobile home:

Sell via the traditional retail market

Like selling a traditional home, you can research to find list values for similar homes in your area. Although, it takes time and effort to search for accurate data, not to mention the market changes radically from state to state.

Because of this, we compile reports for a quick snapshot of national and state markets, which take similar homes to yours and provide you with valuable pricing information. Get your report now!

Sell via the wholesale market

Wholesale is the process of selling your mobile home to a broker who will move and then sell it to a buyer to be provided at a lot of their choice.

For those looking to make an easier and smoother sale, this is the route you want to take. The driving point of this selling method is the convenience of getting a quicker transaction without the headache of figuring out all the paperwork yourself.

CHANGING THE TYPE OF PROPERTY

Did you know that you can change your mobile home from personal property to real estate? Some homeowners opt to do so in order to secure its value, while others are required to if they want to apply for certain financing.

HOW TO CONVERT YOUR MANUFACTURED HOME TO REAL ESTATE

It’s fairly simple: affix (via a concrete foundation) your home to a piece of property that you own. Register it as real estate, and you’re done!

This is a great way to significantly add value to your mobile home as real estate is always more valuable than personal property.

WHY SHOULD I KNOW HOW MUCH MY MOBILE HOME IS WORTH?

Knowing the value of a mobile home not only helps you make better purchasing decisions but it can also influence how much you can sell it for in the future.

 

Factors that help appreciate or cause depreciation aside, a mobile home’s price can also be influenced by:

SIZE

The value of your mobile home will be greatly influenced by its size. There are three main size categories of manufactured homes, and each comes in its own price range.

SINGLE-WIDE

Single-wide manufactured homes normally range between 600 – 1300 square feet and have only 1-2 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. 

 

DOUBLE-WIDE

Double-wide manufactured homes consist of two parts put together on-site. They have about 2000-2500 square feet and open up more possibilities in terms of layout.

TRIPLE-WIDE

Unlike the other categories, there isn’t a specific size range for triple-wide (or multi-wide) manufactured homes. Their size and shape are widely customizable and can reach up to 4000 square feet.

CURB APPEAL

To increase its curb appeal, keep your fixtures, appliances, roof, and facilities up-to-date. The better the level of upkeep of your home, the higher its value.  Moreover, if a house is properly maintained, it also helps lengthen its lifespan. 

EXTERIOR ADDITIONS

If you have added extra features to your home, this can increase the value of your house. These could include replacing window or door frames, adding beautiful trims, or even a lovely porch.

 

Not only could these high-quality additions add to the aesthetics of your home, but they can also add to its utility. So the time and effort you put in will finally pay off.

INTERIOR

The interior of your home can be equally important as its exterior in deciding its worth. Perhaps the most significant element of this is the kitchen.

 

A kitchen is often seen as the heart of a home and residents will spend a lot of time here. Having a modern, functional, and appealing kitchen can be a big selling point.

OTHER INTERIOR ELEMENTS

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.

 

Moreover, the bathroom and kitchen drains, the floors, the ceiling, and any wooden surfaces should also be taken into account.

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 an air conditioning system, central heating, water heater, plumbing system, and more.

ENERGY-EFFICIENCY

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.

 

This includes having insulated doors or windows, properly installed insulation, and a roof membrane.

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 worth will be magnified.

 

Perceptions about the neighborhood in which a mobile home is placed are also a key factor in this regard. Is it safe? Is it a desirable area to live in? How’s the management? Lastly, 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 due to certain factors, 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.

MARKET ANALYSIS FOR MOBILE HOME VALUES

Because there are so many variables that affect the value of a home, most online quotes won’t reflect the full actual cost of sale. However, there are two methods to gain a more accurate figure: professional market value analysis and appraisal.

Market Value Analysis

We provide a retail market analysis for only $24 and we’ll give you the wholesale as a bonus, for free. This analysis is generated based on our extensive database of mobile homes for sale around the country.

 

We use this information to compare the year, condition, size, and demand in the area to create a comprehensive value range that is similar to a bluebook value, but not as model-specific.

 

All Market Analysis’ are:

  • Lifetime – You’ll never need to purchase another report
  • Live data – We update your report in live time, as new homes go on the market
  • Printable – Print a PDF of your report for flyers or open houses
  • Sharable via web link – Post the link with other web listings you have so buyers can see your report
  • Visualized via graphics – Easy-to-understand bar graphs to visualize the data

APPRAISAL VALUATION

A full appraisal will give you a 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.

TAKING CONTROL OF YOUR HOME’S VALUE

Even though there are circumstances that are out of your hands – such as the housing market, interest rates, and location – there’s still so much you can take control of when it comes to your mobile home’s value.

For further guidance, check out these 12 ways to combat fear when selling your mobile home.

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 today!

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