Will My Mobile Home Depreciate?
The short answer is, “Generally, no.” But, it is not always that simple.
Have you ever driven off the lot in a brand-new car with mixed feelings?
On one hand you have serotonin and endorphins rushing through your veins, as you are filled with excitement about the purchase that you’ve made! While on the other hand, you may have worries that the money you just spent will figuratively fly out of the back windows as the vehicle loses value over time.
Even if you only drive it down the road and change your mind, you are now looking at a car that is only worth the wholesale value. The wholesale value is always less than the original retail value of the car. For a brand-new car, this initial depreciation can be in the thousands.
Now, in terms of mobile homes, do these same rules apply? As it turns out, we have good news for you! Mobile homes generally grow in value! So, without further ado, let’s get into the why.
Unlike the car buying industry, a mobile home has quite a few factors to consider when it comes to home appreciation.
To list a few:
- Housing Market
- Community/Land Location
- Initial Pricing
- Age of the Home
- Inflation Rates
- Availability/Supply & Demand
As you can see, it’s a bit more complex than simply driving off the lot.
You can’t really do that with a mobile home! So, no worries there! But, just for clarity – let’s set the record straight, and chat about how you can positively affect your mobile home’s value!
How to Avoid Overpaying
Unfortunately, the mobile home industry has developed a reputation for bad business practices. The truth is, not every business is here to serve your best interest, and instead there are times where greed is involved, but that’s within any industry.
With Braustin’s Best Price Guarantee, we are determined to end that trend here and now!
Here are some helpful guidelines to follow when looking for a reputable home dealer to buy from to avoid overpaying:
- Upfront, Open/Honest About Pricing
- Offering an Estimate Before Running Credit
- Low Pressure Sale Practices
- No Baiting for How Much Cash You Have Available to Put Down
- Providing Knowledge and Guidance Throughout the Buying Journey
The industry tends to make it a bit tricky, but ultimately it is not rocket science! It should be simple, honest, and fair.
As for Braustin, it costs less to give you excellent service because we don’t waste time giving people excuses, we do what is right the first time. From how we see it, everybody wins!
Location! Location! Location!
Now, it is impossible to say that all mobile homes will always appreciate over time or retain its value. But, contrary to popular belief, mobile homes’ values do tend to appreciate over time rather than depreciate. In fact, mobile homes generally increase in value at the same rate as other homes in the area.
But why is that? Let’s talk location!
Maybe you’re wondering, where you can place a mobile home. Well, they can be set in one of two places. You can put your manufactured home on a vacant lot of land that you own or will purchase outside of most city limits to avoid zoning restrictions. Many people choose this first option because the idea of a vacant land affords them more privacy and requires less interaction with neighbors. The other option would be settling into a manufactured home park. This is a great choice for those who enjoy a community setting, and the convenience of being close to town.
When considering location, the following can also affect the value of the home over time:
- Quality of Local Schools
- Employment Opportunities
- Proximity to Local Shopping
- Proximity to Highways/Railroads
- Ease of Access
- Noise Level of Traffic/Trains
Wait, whoa – why do trains matter?
A fitting example of this can be that areas near train tracks can be less expensive to live in, because of the simple notion that nobody wants to wake up in the middle of the night from train horns.
HONK – HONK! Not the fanciest alarm clock, but affective nonetheless!
It may be a good financial purchase, but selling it later may be difficult due if you have a bad location.
Routine & Elbow Grease
Mobile homes don’t have expiration dates and can last for countless decades with proper maintenance, updates, and a little extra care.
The maintenance is essentially the same as a stick-built home with only a few differences such as skirting and roofing.
Did you know there are certain maintenance practices that can be done seasonally to maintain the upkeep of your mobile home?
Spring & Summer Months:
Lawn & Weed Maintenance
- Overgrowth can encourage pests and stubborn weeds to move in
- Mature and well-maintained landscaping helps with resale value
Clear Gutters & Spouts
- To avoid water leaks in your home
- Water damage can decrease the value of the home if left untreated
Change Out Air Filter Regularly
- Helps keep furnace in good working order
- Without a clean filter, heating and cooling coils will clog up, causing the components to work harder, and ultimately fail
Test Smoke Alarms
- Updating the batteries and checking functionality
- Fire damage will decrease the overall resale value of the home
Fall & Winter Months:
- Helps avoid a disheveled yard, and leaf blockage in drains or gutters
- Well-maintained landscaping helps with resale value
- Check for proper sealing and insulation to prevent over-working your heater
- Prevents pests from entering the home who may also be seeking warmth
Inspect Skirting for Holes and Foundation for Cracks
- Solid skirting and foundation retain value, while damage or cracks can cause problems long term and lose resale value.
Following these simple maintenance tips can keep your home in tip-top shape, avoiding the high-dollar amount in repairs if ignored over time. A home that looks run-down will give the immediate impression that there is little value left, and possibly be a money pit due to potential repair costs.
When it comes to updates, you don’t always need the latest and greatest out there!
There are great DIY projects if you do choose to spruce up a room or two every spring. These types of mini renovations don’t cost an arm and a leg and can be quite easy to do! But overall, just taking care of your home will preserve its relative value and longevity.
The basic take away from this article would be, to buy for the right price, do some research on the area you want to live in, and take care of your home. There is no guarantee that a mobile home will appreciate in value, but there is also no guarantee for stick-built homes either. Manufactured homes will typically appreciate over time if they are well-maintained, and that’s the key!
So that’s it: Will My Mobile Home Depreciate? This blog has been revised to keep information and images previously shared, current. Follow the links in this page to read more information on each topic. We would love to chat with you or hear about your experience on our Facebook page or through our Contact Form.