Double-wides are by far the most common type of manufactured home and are considered to be the typical “family home”. Because they are so popular, they tend to hold their value much better than single-wides. Typically, a used double-wide sells for around $50,000-$60,000 while the typical, used single-wide can cost anywhere from $15,000 to $35,000.
How much to add to comparables?
If your property has a two-car garage valued at $20,000 and none of the comparable properties had one, add $20,000 to the sales price of each of the comparables.
How much to deduct from a comparable property?
Deduct from the sales price of each comparable property the value of any improvements it has that your property does not have. If a property had an in-ground swimming pool valued at $10,000, deduct $10,000 from the sales price of that property.
How to calculate the average sales price of a comparable property?
Calculate the deductions and additions to obtain an adjusted sales price for each of the comparable properties. Add the adjusted sales prices of all comparables together and divide by the number of comparables to get an average sales price. This figure should be close to the value of your property.
What is the true value of real estate?
Every piece of real estate is unique and the true value is the highest price a person is willing to pay for it. This is known as the "market value." Real estate values depend on a number of factors. These include the size of the land, the age and condition of the home or double-wide, improvements such as a garage, and the neighborhood. Real estate appraisers go through extensive training before they can determine the value of buildings and land. Homeowners or potential buyers, however, can estimate value.
Is a neglected home worth more than a well maintained home?
You can't really put a dollar value on this, but be aware that a neglected home in a neighborhood of well-maintained properties will have a higher value than a well-maintained home in a neighborhood where there is no pride of ownership.
Is it easy to find comparable sales?
In today's market, it is not always easy to find recent comparable sales close to your neighborhood. It may be easier to visit a website that will provide an estimated value of your property.
Why are double wide homes so hard to sell?
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.
How does a wholesaler price a mobile home?
Most wholesalers must move your mobile home off of the lot in order to purchase it and sell it elsewhere, meaning that they must take on high moving costs for transportation, permits, licenses, unhooking utilities, and prepare a new lot in another location. These costs can be high, and they are all directly subtracted from the offer that the wholesale broker will make to you.
What is the best way to raise the asking price of a home?
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.
Do mobile home owners have to guess the value of their home?
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.
Why are used homes worth more?
As the new homes increase in cost, this pushes more buyers into the used home market, which then increases demand. Increased demand and low supply, means your used manufactured home is worth more money!
Does your home have value?
At the end of the day, your home WILL ALWAYS have some value to it , especially if you take care of it, do your home maintenance and keep it fresh with the times with those honey do projects!
Does a manufactured home drop in value?
Anyone who tells you a manufactured home, by itself, will not drop in value is not speaking the truth. The simplest and most relatable example is to think along the lines of a new car. New cars drop in value as you drive them off the lot right? You buy a new car, because it’s new, financing options are better, it has a warranty, you get to select what you want, etc. Same with a manufactured home….new manufactured homes offer some amazing benefits when looking and selecting affordable housing options.
Does the value of a home decrease as the years go by?
Generally, as the years go by, the home loses base value. While base value will always slowly drop, the older the home becomes, the condition of your home can help keep that value you up. For example, a home entered into the NADA system as poor condition will be dramatically different / lower than one entered in as excellent.
Does land lose value when selling a manufactured home?
While the home itself will lose value as stated above, the land it’s on will appreciate in value, which helps offset the reduction in home value. Last time we checked, land is not getting any cheaper! When selling your manufactured home with land, you will be able to keep the value of your home up, especially with appraisals.
What is residual value?
Residual value upon disposal is the asset's estimated remaining value upon it becoming useless and sold as scrap. You can estimate both the useful lifespan and residual value by examining the details of similar assets sold used on the open market.
Does double wide depreciate?
Only long-term assets with material existence like double wides depreciate. The number of times that an asset depreciates depends on its useful lifespan; the speed in which the depreciation occurs depends on the depreciation method.
What are the long term expectations of a stick built house?
Long-term expectations for a traditional stick-built house is that it will go up in price over time. Many people’s long-term expectations are that manufactured or mobile homes decrease in value over time. There is some truth to both of these ideas, but there are a lot of variables to consider.
Why are manufactured homes so popular?
Because manufactured homes represent affordable housing for a lot of people there tends to be a good market for them. Most buyers will be trying to finance their homes, and manufactured home financing is often a limiting factor.
What is the average size of a manufactured home?
These homes range in size from 960sf to 1120sf. We generally buy a “base” home without any upgrades. Also, we make these purchases only when we’re able to get a great deal on the homes.
Can you get lots in a mobile home?
Supply can be tight as a result. Most of the time, lots only become available when there is an older, dilapidated home that must be torn down or hauled off. Quality of neighborhood should also be taken into account. Just like with mobile home parks, the quality of mobile home subdivisions tends to vary greatly.
Do you have to pay more to set up a manufactured home?
From the above cost chart, you can see that in addition to the purchase price of a new manufactured home, there are plenty more costs to set it up for living. This is true whether you install a new home in a mobile home park, or purchase your own land to set it on. This is also true even if you decide to move an older home to a new location.
How much does it cost to move a double wide home?
Since the average double wide costs around $70,000, moving it for $10,000 or more is a significant increase in your overall spending. It may even work out settling for a cheaper home that’s located somewhere more convenient. Mobile homes are also unique in that they don’t necessarily come with a property attached.
What can increase the asking price of a mobile home?
All of these are relatively easy and common additions that can increase the asking price of a mobile home. If you are a buyer, a carport to protect your motor vehicles or a sunroom to relax in on windy days might also be highly sought after.
How much does a mobile home depreciate?
As a very broad average, mobile homes can depreciate by up to 3% a year. However, this does not apply to all homes.
What are some improvements to a mobile home?
Some of the more common improvements to make to a mobile home are: Installing a pitched roof or doing a roof over. Upgrading the skirting to something attractive and protective.
How does first impression affect your bottom line?
First impressions affect your bottom line. A lot of people still make the mistake of thinking that mobile homeowners don’t place any importance on luxury or aesthetics. However, times are changing and people are no longer only picking mobile homes due to financial constraints.
Do mobile homes come with a lot?
Mobile homes are also unique in that they don’t necessarily come with a property attached. Therefore, most mobile homes, especially used ones, are located in mobile home parks. If you buy a mobile home in a park, you will still need to pay lot rent for the lot it’s occupying as well as any other levies or fees the park charges its residents. However, mobile home lot rent is still extremely affordable with most lots costing between $300-400.
Can improvements increase the value of a mobile home?
Improvements can increase a home’s value. Many are still quick to dismiss the notion of making additions or improvements to a mobile home. For one, people don’t see the use of making costly and permanent changes to something they see as less valuable and temporary.
What are the variables that affect the value of a home?
The variables include: The housing market , in which the home is located, will have a significant impact on the future value of the home. The community, in which the home is located, has a similarly significant impact on the home’s future value. The initial price paid for the home. The age of the home. The inflation rate.
What is the extent of an organized resale network?
The extent of an organized resale network, where an organized network will usually result in homes selling for a higher price than in markets without such an organized network.
How to find the market value of a mobile home?
If you want the true market value of a mobile home, a market-based appraisal is the only way to get it. You can’t just go to a website or a book and look up the make and model of the home and get an accurate estimation.
Is there a guarantee for stick built homes?
Don’t forget that there’s no guarantee for stick built homes to appreciate either!
Is the Nada value guide accurate?
They also go on to explain , “The NADA Value Guide was a fairly accurate market value guide in 1975. Unfortunately, in today’s market, it can no longer be relied upon to accurately determine the local market value of a manufactured home. “
Can manufactured homes gain value?
So how can anyone within the real estate industry state that manufactured homes can never gain value? They can’t and if they do you should stop communicating with them immediately. It’s that simple. Either they didn’t research properly, they haven’t taken the time to understand the market or they simply want to keep you from buying a manufactured home.
What is depreciation of wear and tear?
For tax and accounting reasons, the depreciation caused by wear and tear is calculated every year based on salvage value, cost, and estimated useful life.
How much did your home depreciate?
Now that you have everything you need to know, you can do the calculations to determine how much your mobile home depreciates each year. Of course, you can also consult a professional and have them give you a correct finding. Whichever you decide, knowing the value of your home can help you decide if it’s the right time to move, rent, or sell your mobile home.
How much depreciation is allowed on a mobile home?
Let’s go back to the $20,000 example. The market value will be $17,000 if the home is unfurnished and $14,400 if the home is furnished. Furnished homes are allowed a maximum depreciation rate of 35% while unfurnished homes are allowed a maximum of 50% .
How to calculate depreciation of mobile home?
The home continues to depreciate throughout its productive life. The straight-line method calculates the depreciation by deducting the salvage value from the cost, then dividing the difference by its estimated useful life.
Does the location of a mobile home affect its value?
The location of a home has a tremendous impact on its value. This applies to a mobile home as well. The better the location, the more likely the home will appreciate. The condition of the mobile home can determine its appreciation as well. If the mobile home has been well-maintained with additions and renovations, ...
Do manufactured homes decrease in value?
For example, the "Realtor.com" website says that manufactured homes generally decrease in value. However, estimating stick-built as well as manufactured home resa le values depends on several factors, including location, and age and condition of the dwelling.
Does a poorly maintained home depreciate?
Outside of really hot markets, poorly maintained homes could experience lower resale values. Any home, stick-built or manufactured, that's rundown and in need of repair could even depreciate in value. If your home has repair issues, the cost to fix them may also deter buyers from making offers unless you agree to lower your sale price.
Does age matter for resale value?
Age and Home Resale Value. Whether it's stick-built or manufactured, if your home is old, its location may be of little help. For one, your older stick-built or manufactured home may lack modern improvements and that could negatively impact its resale value. Though not so much for stick-built homes, age does matter for manufactured homes ...
Is manufactured home better than stick built home?
In many cases, the building quality of manufactured homes is high and sometimes even better than that of stick-built homes. One way to look at the quality of manufactured homes versus stick-built homes is to compare their resale values.
Do stick built homes depreciate?
On the other hand, the perception surrounding manufactured homes is that they don't appreciate much in value or that they may even depreciate in value.
