How To Pull Sales Comps On Sarasota Mobile Homes
Are you able to pull sales comps for mobile homes on leased land the same way as you can pull sales comps for single-family stick and brick homes?
Before we continue, for the benefit of our readers, we must understand what are sales comps first.
What are comps in real estate?
Real estate comps are recently sold homes that are similar to the property you’re trying to buy or sell in terms of location, size, condition, and features. Comps – an abbreviation of “comparable sales” – are used to determine a home’s fair market value through the sales comparison approach to pricing property.
Individual comps are assembled into a comparable market analysis and presented by a real estate agent to their client. This is done by both the listing agent working with a seller to set an asking price and the buyer’s agent helping a home buyer determine the amount they should offer.
The sales comparison approach forms the basis for a real estate agent comparative market analysis (CMA), which estimates the value of a property. The sales comparison approach uses the principle of substitution to determine what a specific home is worth. According to this principle, you can figure out the value of a home by finding out how much it would cost to purchase a similar, equally desirable property.
Can we pull sales comps in mobile homes?
We have a question that came to us from one of our viewers who contacted us through our Facebook Messenger to ask the following question, “Mark, could you discuss how I can pull a sales comp up on other homes in the area so that I can know how much other mobile homes are being sold for you?” The question went on to say that they own the early 1970s, double-wide in Sarasota, Florida, and would like to know what they should price their home at. “Thanks for all of your content, Mark. James Brockman.”
Thanks, James. I appreciate your question, sir. And you bet, I will be happy to help answer your question on mobile home sales comps here today.
Mobile homes on leased land are viewed as personal property by the State of Florida, not as real estate.
The reason for this is that mobile homes on leased land are sold with just the home, not the home and the land, which could be deemed as real estate if the home and the land were sold together.
As such, personal property is going to be viewed the same way as a vehicle is, which includes a title and not a deed.
The reason why this is important to know is that there is no way to pull an accurate listing of what mobile homes on leased land sell for since they are not deemed as real estate. In a real estate sale, James, all sales are recorded with the County that the sale is completed in, as well as those numbers being put on the MLS for reference. The MLS stands for multiple listing services, which is a place where a realtor can pull comps for all sales of real estate in the area.
Since there is no tried and true way of finding out what mobile homes that are deemed as personal property are selling for, then the only way we have found is to speak to other Sellers in the area and ask what their homes sold for. Take this as a word of caution from me, James, because asking a Seller what their home sold for can be about as accurate as asking me how much I weigh. I mean, sure, I will tell the truth!
I am being goofy here, but I am also being serious. You have to take the seller’s word for it unless they will be willing to provide you with a purchase agreement that states exactly what was paid for the home.
Since there is no way to find sales comps for mobile homes on leased land, I would also suggest any Seller contact a licensed mobile home broker in your area, such as The Mobile Home Dealer, and ask them for their thoughts on how you should price your home.
When the Broker gives you a ballpark of a number, ask them why and how they came up with that amount of money and see what they tell you. If the Broker you are working with is not able to tell you exactly and with a good reason why they gave you that number, dig a little deeper into their thought process and see why exactly they are saying what they are saying.
If you are not happy with how they determined the number that your home is valued at, then move on to someone else who can help educate you as to why they feel your home should be priced at a particular price point.
Gathering sales comps, or comparable sales, for a Sarasota mobile home can help you set a competitive price for the home. Here are a few steps you can take to pull sales comps:
1. Research the mobile home park. Start by researching the home park in which the mobile home is located. Look for details about amenities, age restrictions, and location. Researching the park’s features can help you determine how much value your mobile home has and how it compares to other homes in the park.
2. Look for comparable homes. Compare your mobile home to others in the same park and nearby parks. Take into account factors such as age, square footage, and condition to determine which homes have similar attributes to yours.
3. Check recent sales prices. Look up-sold mobile homes in the area on local real estate websites to find out what prices similar homes have recently sold for. You can also contact local real estate professionals to get information on recent sales prices.
By gathering sales comps, you can make sure that you’re pricing your Sarasota mobile home competitively and fairly.
Unlike traditional site-built houses where prices can be dictated by the price of the land where it is built, mobile homes on leased land have different pricing systems. Two similar-sized mobile homes in the same park can have very different prices depending on how much the owners want their mobile homes to be sold for.
I hope this helps answer your question, James, and feel free to reach out to me directly if you would like to discuss anything further as I would be happy to do so.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.