Why do manufactured homes depreciate in value

In this article, we will have a look at these key factors. If you want to see how much a mobile home might cost you, we encourage you to read this article on our blog. Size The value of your mobile home will be greatly influenced by its size. There are three main size categories into which manufactured homes can be organized. These different sizes come in their own price ranges. Just like other types of property, the cost of the property is partly based on the square foot of your home as well as the number of rooms it has.

In general, people also often prefer bigger houses and therefore these houses will often be valued more because of their size. Single-wide manufactured homes are the smallest type of units. Homes in this category are up to 18 feet wide and are up to 90 feet in length. In square feet, they normally range between — Because of this size, they are popular for couples or a single person.

As they are more compact, these homes typically have no more than four rooms. They usually have only one or two bedrooms. In addition to this, they have a bathroom and a kitchen or a combined kitchen and living room. Due to their smaller size and difficulty in obtaining financing, they are normally valued far less than other types of manufactured homes.

Double-wide manufactured homes are quite a bit larger than single-wides. They consist of two parts which are put together on site. In total, they have about square feet and are up to 20 feet in width and 90 feet in length. As a result of their size, the way in which space is used opens up more possibilities which makes them very popular.

Their size and shape are widely customizable which means their size varies considerably. They can be up to double the size of double-wide homes at around square feet.

Like their size, their pice can also be double that of other homes. Looking back on the prices of new mobile homes you can see that there is a huge difference in the values of the different sized homes. This will need to be factored in when you try to estimate the value of your house. As you can see a larger home is normally worth more. People often prefer bigger houses and will pay more for them. Bigger houses give you more space to live your lifestyle out the way you desire and this makes double-wide and triple-wide more popular.

The age of your manufactured home is definitely a crucial factor in determining how much your home is worth. This is partly due to the actual effect of time as well as the way in which an older home is perceived. Keep in mind that according to national regulations, mobile homes are usually considered to be habitable for Unfortunately, if your mobile home was built before , this could be a dealbreaker regarding its value.

Why, you might ask? The code sets out standards that are aimed at regulating the safety and build quality of manufactured homes. Homes that were built after this were made to meet these new criteria.

They will definitely be valued higher than manufactured houses that were made before this date. Though not so much for stick-built homes, age does matter for manufactured homes because those built before are usually ineligible for financing. In California, however, manufactured homes built as early as can be financed. No matter your home type, though, its condition is vital in determining its value.

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. At minimum, homes showing evidence of poor maintenance, dirtiness and other problems lack curb appeal and home shoppers may bypass them completely. In fact, mobile homes can cost thousands of dollars to move.

This can make them difficult to resell , since a buyer may have to commit to living in the same mobile home park you live in. Are model manufactured homes fully furnished?

Even if you see furnished manufactured homes at your local home center, the home may or may not be fully furnished. The new manufactured home was decorated and designed all the way from the family room to the dining room, living room and master bedroom.

As with any home , a manufactured home usually benefits from homeowners insurance coverage. Also, a manufactured home can be more expensive to insure because of increased risk due to pipe damage and theft claims. The age of the home is a factor, but only in one primary sense. Size of the Home. Materials Used in the Home. Appliances Included with the Home.

Additions to the Home. Housing Market Where the Home is Placed. Condition of the Manufactured Home. Get a Book Value. A double wide home is a great way to save money while providing you and your family the space needed to live a vibrant life and a place to rest. It will only cost a fraction of what a site-built house cost you. Flipping A Mobile Home isn't for Everyone Flipping is a great way to make money but it is not for the inexperienced.

Being familiar with all the construction aspects of a manufactured home is a must. But most importantly, you have to be able to look beyond the mobile home stigma and see the potential of a mobile home. Unlike traditional homes , mobile homes are more likely to depreciate than appreciate over time. 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? Same with a manufactured home…. Generally, as the years go by, the home loses base value.