Everything we buy or sell has a value. However, when you’re talking about a big, complex purchase, such as a manufactured home, it can be tricky to determine a fair selling price if you’re not taking all of the relevant factors into account.
In the process of how to price a mobile home for sale, you’ll need to look at these five main factors. Others can come into play, but these five things will do most of the work in determining your mobile home value. So be aware of them and know how to get your mobile home ready to sell.
1. Location
Much like any other home, location is a big factor in pricing a mobile home. Desirable locations, such as property near a beach or lake, will often drive up your value. Manufactured homes are also often more valuable if they are located in desirable manufactured home communities with good amenities and a high general level of upkeep.
The market conditions of your manufactured home’s location also play a big role. Different communities may lean more toward buyer’s markets or seller’s markets, so be aware of how your local market is behaving. A little bit of Googling can give you a basic idea of local market conditions, and a qualified real estate agent can help you get a more in-depth picture.
2. Land and Title
Do you own the land that your manufactured home rests on, or do you rent it from a landlord or manufactured home park? That’s a big and important distinction for the value of a manufactured home–and here’s why.
If the homeowner owns both the land and the home, the home can be titled as real estate, and banks will be more likely to loan money on it. A manufactured home that sits on rented land is titled as chattel (personal property) and will be worth less since the buyer will be purchasing a mobile home without land. Securing financing can also be more challenging for manufactured homes with chattel titles. (This is why buying a manufactured home with land is usually a preferable option.)
3. Model
The model or type of your manufactured home is another important factor. There’s a big price difference between single-, double- and triple-wide manufactured homes. Much like in the site-built real estate market, more bedrooms, more bathrooms, and more space will increase the value of your manufactured home.
Newer and more high-end manufactured home models will usually be valued higher. (See #5 below to learn about how to get a mobile home book value for your home.) Amenities such as appliances, hardwood flooring, granite countertops and other extras may also add value to a manufactured home.
4. Condition
Is your manufactured home in great shape, or does it need a little work? The answer will help determine its value, so take a look at our mobile home inspection guide to learn what buyers would be looking for and what you may need to fix.
If your manufactured home needs some work, it’s a good idea to put some money into manufactured home repairs before you try to sell. A quality coat of paint and a little bit of landscaping can bump up the value of a manufactured home quite a bit. So-called “Big Five” repairs (roofing, electrical, sub-floor, HVAC and plumbing) will cost more, but they’re critical to the value of the home, so consider making the investment.
Finally, the value of your manufactured home will almost always be lower if it has been moved more than once. Today’s manufactured homes are rarely moved after their initial delivery, and most lenders consider homes that have been moved multiple times to be riskier loans.
5. Depreciation
Unfortunately, manufactured homes that are not attached to permanent foundations often depreciate in value (since they’re essentially counted as vehicles, which depreciate). However, the extent of that depreciation can vary widely, so make sure to look at your mobile home book value using the official NADA Manufactured Housing Cost Guide.
For those considering how to price your mobile home for sale, the easiest and most accurate way is to use a professional market-based appraisal service such as Datacomp. Datacomp uses a sophisticated database of market information and manufactured home prices to give you an accurate price. MHVillage offers a free Datacomp manufactured home appraisal any time you list a manufactured home for sale, making it easier for both sellers and buyers to get an accurate and fair price for their manufactured homes.
