Do Sarasota Mobile Home Appreciate Or Depreciate?

Do Mobile Homes Appreciate Or Depreciate?

The question is always asked to us at The Mobile Home Dealer, do mobile homes on leased land appreciate or do they depreciate?

Before we get into that answer, we need to do a quick review on what exactly is a mobile home on leased land.

When purchasing a mobile home on leased land in Florida where you are physically owning the home but are paying a monthly lot rent payment to the park then that home is viewed as personal property, not real estate.

As mentioned in a previous article, this will mean that the home is just like buying a vehicle as these homes have titles and not deeds associated with them.

As we all know, cars will depreciate rapidly, especially when they are taken from a brand new car to that of a used car. Many times this will drop your car’s worth significantly once it is driven off the car lot and the first few miles are put on it.

So, with that said, does the depreciation continue at the same rate for a mobile home on leased land as it does an automobile?

The answer to this largely depends on the condition of the property and how well it has been taken care of since it was originally delivered from the factory or previous owner to its current location that you see it in.

One of the main ways a home will depreciate is if the structural components are not well taken care of.

These will be the roof, your air conditioning system and making sure the structure such as the walls and floors are free of severe water and termite damage.

If any of these items are severely damaged or needing to be totally replaced then, yes, the home will depreciate very, very quickly.

If the home has basic wear and tear items on it and does not require a totally new roof or the flooring and wall system does not need to be totally redone, then we see the depreciation come at usually a much slower pace. Please note, in both instances we see that the home will generally lose a little bit of money in home value, not gain value.

What we have found as one of the main keys to focus on in order to maximize your investment is to do all you can to purchase the mobile home at or below what the market is calling for the home to be worth.

Buying the mobile home at a discount will allow you, the Buyer, to have room in the homes value to break even or actually make a pretty good amount of money on the property when you go to sell it.

The key here is just like the old saying goes, “you make your money at the time of purchase”.

Very rarely do we see mobile home Owners make a significant amount of money on their mobile homes regardless of what upgrades they put into the property.

What we have seen, however, is that there are Owners that I personally see all the time who do break even or make a pretty substantial amount of money if they buy their home correctly and they sell their home fast!

This is Mark Kaiser with the Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
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