In our final installment of, “Why A Cheaper HOA Payment Actually Costs You More Money”, we here at The Mobile Home Dealer wanted to dive into the idea of what your actual mobile home can be worth when you go to sell it when you own the home and the land it is attached to.
As we have discussed in our previous blogs within this series when you own a mobile home within a park where you own the land as well as the home, you are no longer owning personal property as the ownership of land, along with the home, now equates to you owning a piece of real estate.
As we have discussed a few weeks ago, when you own this type of mobile home, not only do you own the home and the land, but you are also responsible for paying property taxes, additional insurance, and the highest cost of all, the community share purchase.
In this series, we have discussed other hidden fees that go along with a lower HOA payment, such as the requirement for you to find and pay for your own lawn service, water usage, and a handful of other fees associated with your monthly ownership of that property.
Once all of these monthly fees are added together, the actual cost savings between a land-owned mobile home and a land-leased mobile home is far less than what many folks initially thought of.
This, of course, does not take into account the average $80,000 price tag associated with purchasing a mobile home land share just in order to live within that mobile home park.
Today, we will review what the mobile home is worth and how difficult it is to get any of your money back for upgrades made to the home when the time comes to sell the property and move on to the next chapter of your life.
Well over a dozen times, we at The Mobile Home Dealer have had mobile home Sellers, who are looking to sell their land-owned mobile homes, call us to see if we can help them sell their homes quickly. Since we are licensed mobile home Brokers in Florida, specializing in land-leased mobile home sales, we are not going to able to help these folks at this time, but are happy to get them to someone who can.
What we have been told by many of these Sellers is that when they have tried to sell their home themselves, the only price that they are able to get for the actual home is the share of the land!
The reason for this is that many folks who are looking to buy these properties are looking, just like the Seller was, to obtain a home with low monthly carrying costs. These Buyers are also looking to get into the community as cheaply as possible and know that they must budget for the land share before moving forward. So, the 80 grand land share is usually the bulk of the amount of money the Buyer has available to spend on their new home.
What we have learned in fielding these phone calls from aggravated land-owned mobile home sellers is that the work they put into the physical home is not coming back to them at the time of sale whatsoever!
These Sellers have told us that they are literally getting around $500 on top of the share price to purchase their mobile home!
What this means, to you, is that the home, regardless of what upgrades or updates have been done, is being offered for purchase for a few hundred bucks.
$500 for all that work you put into your home, does that make sense?!
The reason is that there is no tangible value that can be passed on to the next owner.
If, on the other hand, you are looking to upgrade the AC unit, update the subflooring of the entire home, add a new roof, add brand new appliances, upgrade the plumbing, or update the electrical then, yes, these items will certainly see a real-time return on your investment.
The reason why these items will help bring a higher sales price as opposed to the list above is that this list adds structural upgrades to the property that, many times, will have warranties that can be passed on along with years of trouble-free living with some of these major structural upgrades.
To further the example, let’s go ahead and say you spend a few thousand dollars painting the home, it looks great and it was professionally done but the new Buyer does not like the color and wants to change it. Here, the money that was spent to update the property is not a transferable item of value for the new owner and they will not be willing to pay for your personal color taste, regardless of how well it is done.
We hope this series has helped you, the Buyer, know a little bit more about buying and selling a mobile home where you own the land and that this information has helped better inform you of how you would like to move forward with your new mobile home purchase.
The Mobile Home Dealer are licensed mobile home brokers 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. We help mobile home Buyers and Sellers get to a better place in life.
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