How much is my manufactured HOME WORTH?
Hey everyone, this is Brad. I’m a real estate investor and the owner of Arbor View Properties. You can find us at arborviewhomebuyers.com and gamobilehomebuyers.com. Today, I want to discuss the value of mobile and manufactured homes. I’m an investor and a licensed real estate agent in Georgia. I purchase properties across the state, from North to South and East to West. Over the years, I’ve gained valuable experience in this field.
I would like to talk about how to determine the value of a manufactured home. Like anything else, the value of a manufactured home is based on what someone is willing to pay for it.
Financeability
Several factors affect the value of a mobile or manufactured home. The most significant factor affecting the value is the financeability.
If a mobile or manufactured home is located in a park, it is similar to a car in that it is a depreciating asset. Over time, it continues to lose value. Similar to cars, there comes a point where the value stabilizes, but it remains relatively low. It’s important to understand that this is a depreciating asset. The only way to transform it into an appreciating asset is to place it on a permanent foundation, affix it to the land permanently, and retire the title, at which point it is considered an improvement on the land. You can watch my other video about retiring titles in the state of Georgia for more information.
If you own a manufactured or mobile home and want to maintain its value, it’s crucial to keep up with maintenance, especially for older units. Failure to do so can lead to rapid deterioration, as older units were not built as well as traditional stick-built houses.
Newer units, on the other hand, are constructed to higher standards. It’s important to keep in mind that certain factors can make a unit non-financeable. For instance, if the title has not been retired, it may not be eligible for financing from major banks, FHA, VA, USDA, Fannie Mae, or Freddie Mac. In Georgia, for a manufactured or mobile home to be eligible for a loan, the title must be retired with a T34, it must have an engineer certification on the foundation, and it must have a HUD label verification. All three of these requirements must be met.
If you have all three of those things, the good news is that you can probably sell it.
However, depending on its age, anything made prior to 1976 will not be eligible for a loan. This means that you’ll need cash buyers or you’ll have to offer seller financing to potential buyers. However, seller financing comes with its own risks, such as ensuring that the buyer is properly vetted. If they default, there’s a lot of risk involved. While I engage in seller financing myself, I know how to analyze and vet that risk, and I have systems and processes to vet borrowers. This might be something that a regular homeowner selling the property might not fully understand.
I have gained enough experience to know what to look for and what to avoid when selling something. If the item is financeable, it will be worth more money.
Comparables
Additionally, earlier this year (technically last year in 2023, as I am making this video in 2024), HUD (Housing and Urban Development Group) approved guidelines allowing appraisers to use traditional stick and brick houses as comparables to manufactured homes if the manufactured home is on a permanently fixed foundation. This means that appraisers can consider stick and brick homes as comparable sales when conducting appraisals.
When a property appraiser has more houses to choose from, there is a greater likelihood that your appraisal will come in higher. This is because there are more options available for comparison. On the other hand, if the appraiser is only able to find one or two comparables in the area, particularly if they are manufactured homes, the appraisal may be negatively impacted. This is especially true if the comparables were sold below market value. If a manufactured home has been relocated from its original placement, it may not be eligible for government-backed loans if it is moved again to a different location.
There may be some traditional lenders who might consider financing the purchase, but in many cases, they will not. In that situation, you will need to find a cash buyer. Cash buyers have limited financing options, which can reduce the amount of money you can sell the property for. It’s not to say that a cash buyer won’t offer you a high price, because it’s absolutely possible, but in many cases, due to the limited number of potential buyers, you may end up receiving less money for the property.
Appraiser
If you want to get an appraisal for your unit, it’s best to contact a licensed appraiser to have it appraised. If it’s a manufactured home in a park, the best way to determine its value is to check Facebook Marketplace and other online sources to see what similar units are selling for in your area. This will give you an idea.
Look for comparable manufactured homes to yours in terms of age, style, size, number of bedrooms, bathrooms, and other relevant features. It’s important to select properties that are as similar to yours as possible in order to get the most accurate representation of its value. You can’t just come up with a random number and expect to get that amount for it. There’s a science to valuation, and that’s how we evaluate things. If you’re selling a property that needs some work, you could sell it as is to an investor like us.
Let’s Connect
I hope this video has been helpful to you. As mentioned earlier, we purchase properties all across the state of Georgia, including a lot of mobile homes.
I have extensive experience in this process, and I understand that it can be quite complicated, especially more so than dealing with traditional houses. There are numerous factors to consider.
If you are interested in selling a property, we would be happy to provide you with a cash offer. You can visit gamobilehomebuyers.com or arborviewhomebuyers.com for more information. Links are provided in the description below, and a member of our team will get back to you promptly after you complete the form. Alternatively, you can call the phone number listed on our website, and we will be in touch with you as soon as possible.
Thank you once again for watching this video. I’m Brad. Have a great day!