Are you worried about the resale value of your mobile home? With increasing market forces and real estate trends to consider, it’s hard to know whether investing in a mobile home will pay off down the line. This article is here to help answer that question! So, if you want to see how to sell mobile homes and get the best return on your investment, read on.
Let’s first understand what a mobile home is.
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What is a Mobile Home?
Mobile homes are prefabricated structures built over steel chassis frames. Thus their installation is relatively easy compared to a traditional brick-and-mortar home.
In addition, these manufactured homes are increasing in their popularity as affordable housing options, and on average, will cost $64000, which is significantly lower than the median price of a standard home.
To answer whether mobile homes have good resale value, let’s look at the factors influencing their value.
Factors Affecting Mobile Home Resale Value
Financial responsibility entails you knowing your financial position. And one way of doing this is taking stock of your fixed assets, including your mobile home.
Unfortunately, various factors influence a manufactured home’s resale value. Let’s look at them in detail.
Age is a crucial factor when considering the resale value of a mobile home. And with the knowledge that these manufactured homes are habitable for 55.8 years, the older the structure is, the more difficult it is to sell.
This is especially significant if your home predates 1976 when the HUD code was released. Generally, post-1976 homes are built with more safety measures and therefore are more valuable.
And because they meet the HUD code criteria for safety, it’s easier for you to get loans for post-1976 homes.
Just like your automobile, manufactured homes also depreciate with age. And this impacts the resale value of your mobile home. So, unlike real estate, which can increase in value over time, manufactured homes depreciate at the rate of 3% to 3.5% per year. So, if your mobile home cost you $50000 when you bought it, 6 years later, its resale value would be around $41000.
Size significantly influences the resale value of your manufactured home. The bigger the house, the higher the resale value is.
Generally, mobile homes come in three main sizes: single-wide, double-wide, and triple-wide. Let’s briefly look at each one.
Single-wide – These are the most common and smallest of manufactured homes. Measuring up to 90 feet in length by 18 feet in width, these homes are popular for single people and couples.
With the above-mentioned dimensions, single-wide homes typically have two bedrooms, one bathroom, and a small kitchen. Unfortunately, their small size makes it more difficult to obtain financing for them. Thus giving them a lower resale value as compared to larger mobile homes.
Double-wide – Measuring up to 20 feet in width and 90-92 feet in length, gives double-wide homes more square footage than single-wide ones. And they are usually prefabricated as two separate units installed together on the site.
These units are normally priced between $70,000 and $80,000. And ideal for those looking for more space and better resale value.
Triple-wide – If you need even more space, triple-wide homes are your answer. With customizable shapes and sizes, triple-wide homes can reach 4000 square feet. And they’re buying prizes are around $100,000.
Does it have modern features?
Regardless of her mobile home’s age, having modern features can significantly increase its resale value. However, if your house has vintage features, it’s harder to sell.
Features that can influence the resale value of your home are:
- Exterior design
Level of maintenance
A mobile home’s curb appeal is significant in determining its resale value. If the house is well-maintained and kept up-to-date, it will naturally have a higher resale value.
Some of the areas to focus on when maintaining your home are:
- Roofs – Regularly recoating and resealing your roof will ensure it stays waterproof and prevents water from seeping through. And this is an important part of keeping your home’s resale value high.
- Walls – Wallpaper or panels can seriously reduce the resale value of your manufactured home. So, keeping the walls free of any damage or signs of wear and tear is important.
Age, size, modern features, and general maintenance play a crucial role in the resale value of your mobile home. But with the right information and market knowledge, you can ensure you get the best return on your investment. So if you’re considering purchasing a mobile home or looking to sell one, weighing these factors carefully will help you make the right decision.
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