Manufactured homes, only depreciate?HELP!?

Question

Ok, so does anyone know if you have a Manufactured home, and only own the home, not the land it is on..will it ever appreciate in value? or will it only depreciate?

I'm thinking of purchasing one, a VERY nice one you'd never know it was a manufactured home, but I cant afford to buy the land to put it on (we live in AZ!)

some of you are complete morons!

IT IS NOT A TRAILER.

IT IS NOT ON WHEELS.

It is ON FOUNDATION.
It has a built on Porch.
It is a 2004 with custom designer paint/murals/chandeliers/new appliances/3 car port/wood floors 3 bdrm/2 bath just over 1800 sq ft with landscaped yard.

My parents live in one, on an acre, its worth $250,000. partially, because it has land, we want to know if I only own the house, not the land if it will keep any value.

Answer 1

Here we go. It seems that everyone has advice for you, but do any of these people actually OWN a manufactured home? I think not. Let me tell you, girlfriend, the manufactured home I live in was built in 1990. The cost of the home, placed on the lot was $21,000 (this is not including the price of the lot, by the way). This is a double-wide, 1,400 SF home, 3 bedrooms, 2 baths. NICE! I did have it placed on a small lot (recommended) and the wonderful people at the township office...just told me the value of it for tax purposes is $90,000 this year. And I live in Michigan where the economy stinks right now.

I have proof on paper if anyone questions this!

I sold real estate for 30 years, I appraised real estate for 4, now retired. We have a mobile home community here (homes NOT on owned lots) and the prices have raised so much in the past few years because of supply and demand. Even stick-built homes can depreciate if not taken care of...

So, go for it, enjoy your new home. I doubt if ANYTHING in Arizona is going to lose its value any time soon!

Answer 2

Manufactured homes in a park are usually limited to who will finance them. The interest rates are usually anywhere from 2-3 points higher then stick built houses in some cases.

Another hot button now is if you were to move that mobile to land it may be even harder to finance. They basically want it to go from the factory to the land. Also, the loan to values are much lower. You can forget about getting 100% financing. Resale is usually not that great either.

I'm not dogging manufactured homes in any manner. For some people it is the way to go and at least they can own something. But as an investment it is not as lucrative as a stick built. But in CA the past few years the mobiles and manufactured homes appreciated because houses were so out of reach for many people that was the only way for them to go. But now they are depreciating much faster then stick built.

Before you buy that though, check with a lender regarding Arizona's first time homebuyer program. I just recently learned about this program and went through the training. Check it out! You may qualify for a condo or something else.

Good luck!

CA Lender

Answer 3

A Mobil home and a Manufactured home are the same thing, but a Mobil home is the old style, like more then 15 years old. A prefab is in several sections when arrives on the site, not just two sections like a Manufactured home. It also will not be left on wheels, but be put on a foundation. A Pre.fab can not ever be moved once it is set up.

Answer 4

Some of the information you are getting here is simply untrue.

I recently talked to a lender about a 1978 double wide manufactured home on a foundation and that is no problem to finance. It's in a park.

A term you will hear is pre-HUD, which is before June 14, 1976 - MH homes built before that can be challenging to finance, but not impossible.

With that issue cleared up, let's move on to the appreciation factor.

I have never seen a MH home in a park appreciate. I'm sure in some markets they hold their value or appreciate. But even if its on its own land, it is sort of like buying a car, it is never worth again what you paid for it.

Things you need to know about MH before you sign, is it on piers or a foundation? Does it have tie-downs (some lenders will require this even if you aren't in a hurricane or tornado zone). If you have a choice, get one on a foundation, MUCH easier to finance. (Although financing a newer MH on post and pier isn't a huge deal).

If it comes down to renting or buying this MH, when you are ready to move, you will at least get something out of the MH.

Good luck to you.

Answer 5

If you have a manufactured home and rented land, then they ONLY go down in value. They don't go up....ever...b/c you don't own the land.

They depreciate like a car, and don't let anyone tell you otherwise...or you'll find out the hard way.

Be careful...used trailers are hard to get rid of and you'll only get a fraction of what you paid in.

Note: In all due respect to my fellow posters, a few of you are confused on the difference between a MANUFACTURED home and MODULAR home.

A MANUFACTURED home is a trailer, and without land, NEVER appreciates in value.

A MODULAR home is a home built out of the same materials as a stick-built home, but built in sections, and then the sections are moved to the home site where it is quickly put together....these do carry the same value as stick-built homes b/c you ALWAYS own the land that goes with it.

PS: It is legally impossible for the home you are referring to, to be a permanent structure and not own the land that goes with it...if the land is separate, then it is a trailer and you just don't realize it. Get a qualified inspector out there and he or she will be more than happy to point it out to you. Chassis and wheels can be removed...but it's still a trailer.

Not trying to be rude, but please don't assume people here are idiots when you don't use the correct terminology.

Answer 6

They tend to appreciate the same as any other house, provided that there is an upward swing in real estate in your area.
Of course, in a slumping market, they may depreciate the same as others in the neighborhood.
A well-made manufactured home is not considered inferior compared to a conventional tract home, although a custom-built house may hold it's value better. But, nothing wrong with a manufactured home.

Sorry, but Suzy, below, is giving you the typical realtor's bullsh*it line. Manufactured homes are NOT NECESSARILY considered the same as MOBILE homes, and provided you own the land, and the structure is placed on a proper foundation, especially here in California, then YES THEY DO APPRECIATE! But, the fact that you won't own the land can sometimes cause a depreciation of the home, but not always. I know many folks who own true mobile homes, without owning the land, and those homes had gone up in value, provided they are well-kept.
I have been involved, through my (now ex) boyfriend, his parents and sisters, in real estate rehab for over 20 years. They are ALL licensed realtors, and they taught me well. I can tell you that Suzy is just touting the typical "upper class" white folks party line because she probably doesn't want to deal with lower-income buyers. It's realtors like her, with their bourgeois attitudes about homes, that have driven the prices of homes into an un-reachable state for most middle-class families.
If you need some good land, try Landauction.com
I just bought 2 acres in Tehachapi, CA at one of their auctions, and I'm very happy with the result. With them, you CAN afford to own the land.
That way, you also have the security that comes with land ownership.

Answer 7

You might want to check realty brochures & pamphlets oriented around the area where you might like to settle... check out prices on manufactured homes more than 2 to 3 years old and compare them with similar size & quality NEW mfg homes...a lot of any 'appreciation' is based on improvements made to land, landscaping, outbuildings, pools, awnings, etc., so the mfg home itself may not increase in value over time--without 'goodies' added to the property as a whole. Consider shopping for one already in place in a nice development or park--perhaps as a rental first, to see if you like how it all works. New ones always look spiffy, but time takes its toll on most of them. The same money might get you a fixer-upper with land that YOU can 'appreciate' by improving both house & land as you go. They'll never make more land, but mfg houses come out of factories forever!

Answer 8

Technically all homes depreciate in value. That is why you can deduct depreciation on your taxes if you own a rental home. Technically only land appreciates in value.

However selling prices for homes fluctuate based on the current market and the going value of the dollar at that time. So typically home prices always go up in value as long as they are well maintained.

Some manufactured homes are built better than typically houses, because they are made in a building without being exposed to the weather.

Answer 9

Conventional lenders mostly will Not lend on a manufactured home over 10 years old and
In many places , insurance companies drop coverage at 10 yrs old .
They therefore , Never appreciate and the fact that it is manufactured is on the documents .
Appraisers and lenders do NOT function by "looking" but by the forms , so they will always know it was a manufactured .

Answer 10

Manufactured is just a nice way of saying mobile in some aspects, if it is on rented land such as a mobile home park it will be considered a mobile. If it is on private land with a foundation then it will be considered a manufactured home and will increase in value. If it is in a park forget it it is a trailer, if on your own land it is a modular