Calculating the Value of a Manufactured Home

Calculating the value of a manufactured home involves several factors, and the process can vary depending on whether you own the land or rent the lot. Here's a comprehensive step-by-step guide.

1. Determine the Type of Home

Identify if your home is a mobile home (built before June 15, 1976) or a manufactured home (built after June 15, 1976). Manufactured homes adhere to stricter building codes and tend to hold their value better. If the home is modular (more here on the differences between modular and manufactured), your valuation methodology should be more similar to that of a traditional site-built home.

2. Gather Home Details

Collect information about your home, including the manufacturer, model, year built, size (length and width), number of bedrooms and bathrooms, and any upgrades or additions made. You'll be able to use this information when comparing with other similar manufactured homes. If you've ever done research on cars, this process will be familiar to you.

3. Check the NADA Guide

The National Automobile Dealers Association (NADA) publishes a Manufactured Housing Cost Guide, which provides book values for manufactured homes based on factors like age, size, and condition. You can purchase a report from their website for a fee, typically ranging from $35 to $55. Alternately, Bramble offers valuation for free!

4. Location Details

Similar to a site-built home, the location of your manufactured home will impact its value. Consider the desirability of the area, proximity to amenities, and the regional housing market.

The home's value will be higher If you own the land the home sits on than if you rent the lot in a mobile home park. This will also have an impact on your loan and insurance costs (more on that later).

5. Research Comparable Sales

Look for recent sales of similar manufactured homes in your area or mobile home park. This will give you an idea of the current market value for homes like yours. Use the information you collected on the home to get an apples-to-apples comparison, factoring in manufacturing details and the condition of the home.

6. Consider Financing Options

Manufactured homes may qualify for a variety of loan types, including personal (chattel) property loans, auto loans, and traditional mortgages. Speak to a lender to determine what you may qualify for personally, and also find out from them what the requirements are for each type of loan in your target area. Generally speaking a traditional mortgage will have lower interest rates than a personal property loan, and will be preferable.

Financing Options

  1. Chattel Loans: For homes not permanently affixed to the land.
  2. Conventional Mortgages: If the home is affixed to your own land, it might qualify for a traditional mortgage.
  3. FHA Loans: Low down payments and available for manufactured homes that meet certain criteria.
  4. VA Loans: For veterans. This could be a no down payment option for homes that are permanently affixed.

7. Explore Insurance Options

Similar to site-built homes, you'll want to get both title insurance and property insurance. Title insurance considerations are similar to those of a site-built home. For property insurance, you'll have a few possibilities:

  • Personal Property Insurance: Covers the home itself and your belongings if you rent the land.
  • Real Property Insurance: If you own the land, this insurance covers both the home and the land.
  • Liability Coverage: Protects against injuries occurring on your property.

8. Hire an Appraiser (Optional)

For the most accurate valuation, consider hiring a professional appraiser who specializes in manufactured homes. They will conduct an on-site inspection and provide a detailed report, typically costing around $500. In some areas, this will be a mandatory step for getting your mortgage approved.

And that's it! You've gotten a good idea of the financial costs involved in purchasing a manufactured home (not including service fees for closing costs such as inspection). Now you're ready to start searching for homes and putting in offers!

Questions? Requests? Contact us at team@usebramble.com.

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