SELLING YOUR MOBILE HOME & HOW TO GET THE BEST PRICE
Selling a mobile home might seem easier than selling a house but with little information available and almost no data transparency for the market, it can be extremely difficult for owners to find mobile home values quickly, accurately and easily. Despite that, thousands of mobile home owners must either guess the value of their home or pay high valuation fees to get a better estimate of the final sale price.
It’s important to note, mobile home pricing isn’t standardized and even new models can be priced differently depending on the sales lot. And, while you can do research to find list values for similar homes to your own, this takes time and effort to search for valuable data, not to mention the market changes radically from state to state.
This means that as a mobile home owner, you must be able to research and make the best decision for your needs in order to walk away with the highest profit from the sale. Your primary options are to sell via the traditional retail market, which functions similarly to selling a home, or to sell through the wholesale market, where a broker will directly purchase your home for a wholesale price. Each opportunity has its own pros and cons and it is important for you to understand the distinctions and opportunities of each to make a good decision.
Because selling is often more cost effective than choosing to move your mobile home, it is crucial that you be able to earn the maximum profit when you sell your home. This guide will help you to understand different valuation methods and markets so that you can make the right choice for your home.
MARKET
So many specific things about your mobile home influence its market value. But while the home can influence the market value, it can be the other way around – the market can impact the home’s value. Your local mobile home and real estate market can greatly influence your mobile home’s worth. Before you start looking for ways to add value to your mobile home, we encourage you to get to know your local market’s current climate and learn how it changes throughout the year.
HOW TO DISCOVER YOUR HOME’S MARKET VALUE
To understand your local market, do some amateur market analysis. Compare listings on real estate websites or other sites like Craigslist. What is the average price for a mobile home? Which homes are selling for more than the average price? How long are the mobile homes sitting on the market? (It could be a week, a day, a month, two days – get an idea of how fast mobile homes are selling.)
This info will tell you several different things, such as whether your market is a buyer’s or a seller’s market. If there is high demand for homes in your area, and they’re selling like hotcakes, then you’re in a market that’s favorable to sellers like you. Analyzing the market can also tell you which neighborhoods are seeing a lot of new people moving in and which are seeing a decline in residents.
LOCATION
This brings us to our next factor: location. They say that “location is everything.” While that’s not entirely true, location may still be the most important way to determine your mobile home’s value, especially in certain markets.
There’s not much you can do about location unless you decide to move your mobile home to a nicer area. For most homeowners, however, that is far too expensive and won’t be an option. Instead, do a realistic assessment of your home’s current location. Is it near nice schools and shopping areas? Is it in a pleasant mobile home community or out in the country by itself? If you live in a neighborhood, is it a peaceful place with no loud neighbors and low crime rates?
A mobile home that is near impoverished communities or crime hot spots won’t have the same value as a home in a good neighborhood. Also, if you live in an area where good schools, stores, and recreation areas aren’t easily accessible, this will bring down your home’s value.
TYPE OF PROPERTY
Did you know that you can actually change the type of property you own? That’s right, you can actually change your mobile home from personal property to real estate.
REAL ESTATE VS. PERSONAL PROPERTY
From the moment they’re manufactured, mobile homes are, well, mobile. They have the same type of title deed that a vehicle would have. This makes them what is technically known as personal property. Stick-built homes, on the other hand, are real property. Otherwise known as real estate.
Basically, anything you can move around with your hands (or with a truck, in this case) is personal property. Land obviously cannot be moved. Therefore, if a stick-built home is built on a piece of land it becomes part of the land and can’t be moved. It becomes real estate.
UPGRADING TO REAL ESTATE
By now you’re probably wondering how you could possibly change your mobile home from personal to real property. 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!
Obviously, it’s a little more involved than that, but you get the idea. This is a great way to add value if your mobile home is still mobile and sitting on a piece of property you already own. By converting it to real estate, its value will increase significantly. Real estate is always more valuable than personal property so take advantage of that if you can.
UPGRADES
Before you decide on your home’s market value, you must take into account any upgrades you’ve made while living there. Upgrades can include new or better appliances, new sheetrock, new flooring, a fireplace, or a porch. Anything that you’ve replaced with something better adds a little to your home’s value.
Obviously, since mobile homes are manufactured factory-style, the materials used are low-grade compared to a stick-built home. If you recently ripped out all of the wall panels in your home and replaced them with sturdy drywall, that’s something your buyer will appreciate. A porch or deck is also a huge plus, provided it doesn’t inhibit the buyer from moving the home if they need to.
CURB APPEAL AND AESTHETICS
Just like upgrades inside your home, curb appeal is a major selling point to most buyers. If your mobile home sports nice skirting, a trendy siding color, and a roof that’s in good shape, that automatically puts new value into your home. You’ll improve the home even further if you tear off that classic vertical mobile home siding and invest in stick-built grade siding.
Inside your home, paint is the number one way to instantly freshen up the space. Installing better molding, creating an accent wall, and installing better windows are also great ways to put a new spin on the traditional mobile home. Anything you can do to make it seem a little bit more special and unique is good. Buyers don’t want a home that looks like every other mobile home in the park. They’re looking for a mobile home with character, just like buyers of stick-built homes are.
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.
SIZE
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
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 wide's cost about $ 50,000 which is significantly less than the bigger types.
DOUBLE-WIDE
Double-wide manufactured homes are quite a bit larger than single-wide's. 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.
TRIPLE-WIDE
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 price can also be double that of other homes. The price for new triple-wide's 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.
DEPRECIATION
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.
UPKEEP
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.
INTERIOR
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.
DESIGNER KITCHEN
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.
OTHER ROOMS
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.
ENERGY-EFFICIENCY
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.
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 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
MARKET ANALYSIS FOR MOBILE HOME VALUES
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
A Market Analysis is the way you support your asking price when negotiating a sale with potential buyers.
How do they work?
We receive information on thousands of homes for sale each year from all across the country. We’ll collect basic information on your home and match it up with the many homes in our database, zeroing in on only those that are similar to yours, and report back to you what the asking prices to these homes are. This gives you the necessary information needed to set your asking price with confidence. In the end, it doesn’t matter what someone (or some company) tells you what your home is worth. In the end, it’s only worth what someone is willing to pay for it, and making sure your home isn’t over or under priced, in comparison with other homes on the market, will keep you in the running with buyers in your area!
APPRAISAL VALUATION
A full appraisal will give you a much 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 and include a full inspection where the appraiser will examine the square footage of the home, the condition, the park, the heating and cooling, and details about the park, and other factors to create a detailed report that reflects repairs, issues, and a general overview of the retail value. Real-property mobile homes are appraised using the Uniform Residential Appraisal Report, Form 1004C. However, if you rent a lot at a mobile home park, there is no standardized form for appraisal. There is always things you can do to protect yourself from low ball appraisals.
No matter what your market value or appraisal, you should be cautious about setting your asking rate. The actual sales value for mobile homes can vary a great deal and can range from as little as a few hundred for very old homes that cost owners too much in monthly rental fees to over $250,000 for triple wide or larger homes on owned property. (You have to take these factors into account when comparing your home with another. Our reports simplify this for you by only comparing your home to homes similar to yours. We match your home up with similar homes, in your market, so you can be confident that you’re not selling yourself short.)
Final sales prices typically range between $5,000 and $15,000, the exact rate will change a great deal depending on your specific home, your local market, the park, and other details. Used double and triple wide homes can sell for significantly more, as they hold their value better, but are often more difficult to sell because the asking price is higher.
However, no matter what your situation, your final price will ultimately depend on your market and how you choose to sell your home. One of your most important decisions will be whether to sell retail and list the home yourself or sell directly to a broker for a wholesale price, and each option has its own pros and cons for costs.
RETAIL MOBILE HOME VALUES
Selling a mobile home yourself means either connecting with a real estate agent or listing the home yourself, marketing, showing the home, handling paperwork, getting permission from the park, and if you’re moving away before the sale, continuing to pay rent and fees for the home. Just like with selling a house, you set a price, accept bids from interested buyers, and eventually make a deal to sell the mobile home. You keep all the profit, and you get the maximum sale price for the home.
Just like with selling a house, you set a price, accept bids from interested buyers, and eventually make a deal to sell the mobile home. You keep all the profit, and you get the maximum sale price for the home.
However, while this option is outwardly advantageous, retail sale has a number of disadvantages that you should be aware of before you choose to sell your mobile home in this way.
MARKET VALUES
Most people choose to do a significant amount of comparison research online to see what they can sell their mobile home for. Chances are, you’ve already looked around to see what mobile homes are selling for and may even have an idea of what your home may be worth.
Unfortunately, this kind of sales comparison won’t always work. First, you have to factor in homes that are in similar condition, with similar upgrades and size. Typically, unless the home is in the same mobile home park, from the same year, with the same upgrades or modifications, a single online listing won’t accurately reflect the sales value of your home. You need to compare with several homes in order to get an average asking price range. The more homes you can compare the better.
You can use these listings to get a ballpark figure of the asking price you may want to try when listing your home for sale. It’s also important to remember that your manufactured home may not sell for the asking price you set. However, you’ll have a much better chance if your price range is competitive.
Market Demand – If you’re in an area with a high volume of mobile homes on the market, you have a much smaller chance of getting your asking price if it’s higher than others in the area. In most areas in the United States, the number of used mobile homes outstrips the market, meaning that there are more sellers than buyers, which also means that you might have to reduce your price a great deal to make a sale. On the other hand, if there are only a few other sellers, your chances of getting your asking price are much higher. Performing the necessary due diligence will limit the chances of under pricing your home.
The primary benefit of using the retail market is that you can potentially earn more money by getting the full retail price. However, it is not guaranteed, and you have to consider the factors that affect the pricing to see your actual profits.
Age: Older homes lose value, are more difficult to finance, and typically sell for much less.
Make and Model – Some brands are more desirable than others. If you are going through a real estate agent, your mobile home will be assigned to First Tier or Second Tier for pricing based on the make, model, and manufacturer.
Size – The size, number of bathrooms, bedrooms, etc., will affect the sales price.
Condition – The better the interior and exterior condition of your home, the higher the value.
Improvements – Have you factored any improvements or upgrades into the cost.
Problems – Are there any issues or problems? Old appliances, leaks, loose boards, and damage all lower the sale price of the home.
Park Rental – The park rental fee will affect your ability to sell. Check with the park manager to see if there will be a fee increase for the new owner, and factor that into your sales price.
Community – A quality community will raise the asking price for your home, so be sure to factor in amenities and services offered by the park.
Time to Sell – Your mobile home may take anywhere from a few months to over a year to sell. Most buyers will consider all of their options, including regular homes, before purchasing a mobile home, and you will likely have to sit through several house showings, several inspections, and multiple price negotiations before making a sale. Most interested buyers will hire an inspector to review the home and use that inspection to place their bid. In most cases, it is very difficult to obtain financing for a used manufactured home, especially on a park lot, so most banks won’t help your buyers to make the purchase. This can considerably slow down your time to sale, simply because buyers must either take out a high-interest loan or come up with the capital in cash in advance. This difficulty stems from the fact that mobile homes are considered property and typically registered as motor vehicles, even though most of them are never moved.
Costs – There are numerous costs associated with selling your mobile home and you should factor them into your final decision. You can typically choose to either sell the home yourself, which usually takes longer unless you have a friend or family member who is willing to buy it, or use a real estate agent, who will help you to prepare, photograph, and list your home to find buyers. Most realtors typically charge around 6% of the final sale value in fees. However, not all realtors are willing to work with mobile homes, so you may be forced to handle the sale on your own.
Park Rental – If you are unable to live in the mobile home until the sale, you must factor direct park rental costs into your calculations. While you probably already know the rates you pay, the average park charges between $180 and $300 per month for the lot. This will add up significantly if you take a year or more to sell the home. You also have to factor in required repairs, any maintenance on the home during the period, whether or not you have to continue to pay for utilities, and any other demands (such as insurance) put on you by the park.
Marketing – If you are selling the home yourself, you will have to pay for marketing out of pocket. While there are free and low-cost marketing resources, you should factor marketing in as a cost.
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