Winter season is here and your family is planning to buy a mobile home in Sarasota Florida area. You find a lot of beautiful mobile homes online and you decided to pack and visit these mobile homes.
before going down south and making the decision to buy a mobile home here in Sarasota, there are some important things people who are not familiar with mobile home living should know and one of these is the type of land ownership where the mobile home sits.
When looking at buying a mobile home in a mobile home park within the greater Sarasota Florida area the Buyer of the mobile home has to look at what types of parks exist and what will best fit their lifestyle needs.
Mobile home parks around the Sarasota Florida area come in two types:
- Land-Owned Mobile Home Parks
- Land Leased Mobile Home Parks
Land-Owned Mobile Home Park in Brief
Land-Owned Mobile Home Park, popularly known as Resident-owned Mobile Home Park is a type of mobile home park ownership where every resident shares the ownership of the park. As a resident, You do not own the land that your mobile home is sitting on. Instead, your ownership is comparable to being a stockholder owning an interest in the entire community. The monthly fees are generally half of the lot rent fees paid on a land lease basis for those mobile homes sitting on parks owned privately by a single owner, family, or company.
Cooperative properties are listed on the Multiple Listing Service or MLS alongside conventional real estate. When purchasing or selling a mobile home that is part of a co-op you are able to gain massive exposure in both selling your manufactured home or searching to buy your next mobile home.
You pay real estate taxes just as you do on real property. Because the purchase price is relatively low, your taxes are not that high. If you are or will be a Florida resident, you can homestead the property resulting in significantly lower real estate taxes. Other qualifying reductions in real estate taxes include disability and more.
Land-Owned Mobile Home Park in Depth
When looking at buying a mobile home within a mobile home park where you own the land you will be purchasing both the home and a share of ownership in the mobile home park.
A share is similar to a stock certificate that states you as the new Buyer of the mobile own a percentage of the entire mobile home park. This stock certificate means that all of the residents in the mobile home park own an equal share of the entire ownership of the mobile home park. Having this percentage ownership allows the Buyer of the mobile home to vote on certain rules and regulations that the park will look to obtain throughout the year.
When buying stock in a mobile home park within Sarasota Florida the purchase does come with a pretty steep price.
As of this writing, the average price of a mobile home park ownership certificate is just over $50,000.
What this means is that when you buy the mobile home you will also be required to purchase the stock certificate in addition to the price of the mobile home, they are two separate numbers tied into the same purchase price.
The pro of buying stock certificates in a mobile home park that is located in the greater Sarasota Florida area is that lot rent will usually be about 50% less than that of a land-leased park.
One of the major cons is that the amount of money saved each month on lot rent is a small percentage of the cost of the initial stock purchase price.
For example, the average lot rent for a mobile home on leased land in Sarasota County Florida is $750.
The average lot rent for a mobile home in a land-owned mobile home park in Sarasota County Florida is $250, which usually does not cover your lawn care, water bill, or sewer bill.
If we consider for a moment the cost of the above bills that are not included we could look at another $150-$200 extra per month added on top of the $250 HOA. This would bring the total cost of the monthly bills to around $400.
A $350 savings or, around $4,000 per year.
With the average cost of a stock certificate being $50,000 this means that the owner of the property would need to live in the park for at least 13 years to break even.
If you are planning on living in the park for 13 years just to break even then this may be a good option to follow, especially if the new Buyer can afford the additional $50,000 purchase price.
If this is not feasible then looking at a land-owned mobile home park with all of the amenities already included in the monthly lot rent may be a better option.
The Mobile Home Dealer are licensed mobile home broker in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, please contact us by clicking this link. You may also visit our Facebook Page and send us a message
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.