Your Guide To Selling A Mobile Home
A mobile home affords you the luxury of movement to escape the dramatic weather, especially during winter. You also get to spare some money since buying a mobile home is often less expensive than a traditional site-built house. Home Direct says purchasing one square foot of a mobile home is about $49 compared to $107 for their site-built counterparts. Nonetheless, it does come at a time when you have saved enough and are ready to anchor down in a standard home.
In such a scenario, the best course of action is to put your home up for sale. However, it is worth mentioning that placing a mobile home on the market differs from selling a site-built home, and you need to be very careful in your approach to find the best possible price on the market. The good news is that while selling your mobile home is a bit more challenging than a typical home, it is not impossible. Take a look at the following tips that will go a long way in helping you sell your mobile home without too much trouble.
Differentiate between real and personal property
To begin, mobile homes are often considered personal property instead of real property if you don't own the land the house sits on. As such, they are registered with the Division of Motor Vehicles (DMV) just the way automobiles are, mentions JD Supra. Because of this distinction, selling your manufactured home is different from vending a traditional site-built home. However, if you own the land the property is sitting on, it becomes possible to convert it into real property and sell it like any other house.
Depending on the state you live in, you might need to affix the mobile home to the foundation on the land as part of the requirement of converting it into real property. On the other hand, if you don't own the land the home is sitting on, you have no choice but to sell it as personal property. Mobile homes sold as personal property don't have the same value as those converted to real property. If you find a buyer, you will transfer the title over the same way you would when selling your vehicle. Also, since you don't own the land, the owner will have a say on who you can sell the home to.
Work with a real estate agent
No doubt selling a mobile home comes with its fair share of challenges. For this reason, it is better to partner with your local real estate agent to help you with a few things. Think about it, real estate agents have vast networks and a wealth of knowledge when it comes to different issues related to buying and selling houses. Also, they are the best people to consult whenever you are presented with a legal problem like contract negotiation and disclosures that you might not understand.
Also, a real estate agent will bring you up to speed with the necessary upgrades and repairs that you need to do to land a buyer quickly. Remember, it is not entirely impossible to sell your mobile home without involving a real estate agent. However, if it is your first time, you want all the advantages of working with a professional that will make the process less complicated and get you to the closing table in the shortest time possible. According to Newby Management, you could sell yourself short by up to 15% if you decide not to involve a realtor in the process.
Provide various financing options
What better way to attract potential buyers than to accept different financing options? While the price of purchasing a mobile cost is lower, the upfront cost is still high. The good news is that there are plenty of financing options depending on whether your mobile home is real or a personal property. According to the Rocket mortgage, the most common types of loans you can get for a mobile property include FHA loans, VA loans, Chattel loans, and owner financing. While getting an FHA loan for mobile homes is possible, the few lenders willing to finance have stringent requirements and need the house to be FHA certified.
VA loans, on the other hand, are exclusive to veterans only and can only finance real properties. Chattel loan providers finance personal properties like vehicles and also mobile homes. Typically, they are easier to qualify for, but the caveat is that they come with relatively higher interest rates than traditional mortgages. If all else fails, an owner-financed loan can be an excellent incentive to encourage your potential buyer to purchase the house. However, Braustin Homes mentions that you should be ready to handle a loan default if you go this route. The buyer should give you a down payment and then agree on a workable payment model over a given time.
Price your home accordingly
Similar to selling any other property, you should find that sweet price range that is neither too high for potential buyers nor too low for you to turn a profit. However, as mentioned before, the price of your mobile home will depend on whether you own the land it sits on. Generally, if you own the land, your asking price will be higher than if you sell the house alone. Determining the right price for your mobile home is easier said than done.
There are a few factors that you need to put into consideration, for instance, the location, specific model, condition of the house, and depreciation in value. While it is essential to consider all these factors, MHVillage recommends seeking the services of a reliable market-based appraisal to get the accurate value of your home. Another option you can explore is paying for a private appraisal; this way, you can get the true value of your mobile home in its current state.
Increase the value with a few upgrades
First impressions count; therefore, it is vital to upgrade your mobile home to attract potential buyers. Inspect your home and identify the issues that will not only improve the aesthetics of the house but also increase its value at the same time. Modern features like an all-weather screened-in porch, a nice garage, or even a dormer are bound to increase the value of your mobile home, mentions MHVillage. Another simple upgrade that is also cost-effective is paint.
You will be surprised by how much a fresh coat of paint can give your mobile home the much-needed facelift. Experiment with modern color schemes not only on the exterior but also on the inside. Also, ensure that everything is in tip-top condition before selling your home. Remember, some people buy mobile houses as investments; therefore, you should do everything by the book to make your mobile home a worthy asset for prospective buyers.