It is time to sell your mobile home in the greater Sarasota Florida area.
While this may be met with some sadness it can also be met with some excitement for the next chapter of your life and where it will bring you!
We should price the home super high and then come down because we can always go down on price, but not up, right?
This is a common idea that I have Sellers come to me all the time and tell me that this is their plan, to price their home high in hopes that they will hit a home run with this price, but are willing to come down later.
Every time I hear this idea, I always go against it as I do not think this is a good plan to follow when trying to sell your mobile home quickly.
The reason why is that most mobile home Buyers are looking for a home that is affordable.
As we can all agree, the term affordable can mean different amounts of money to different people. What may be affordable to one person may not be affordable to the other.
One thing is for sure, though, the lower you price your home, the more people will find that price affordable.
With that thought in mind, I always suggest starting the pricing of your mobile home as competitively as possible in order to pull the most eyes to your property as fast as possible.
Before putting a price tag on your mobile home or, better yet, working with a licensed mobile home broker such as The Mobile Home Dealer for guidance in pricing your home, one needs to understand the pros and cons of the price you put on your mobile home.
How are there pros and cons of pricing a mobile home, isn’t the higher the price the better?
While this may be true in some instances we here at The Mobile Home Dealer are continuing to see that this thought can backfire quite a bit on the Seller.
Let us explain.
Mobile homes that are located on leased land in the state of Florida are viewed as and taxed as personal property, not real property.
What this means is that a mobile home that is located within a land-leased mobile home park is sold the exact same way a vehicle is in the state of Florida.
While there are some lending agencies that will lend on these types of homes, most traditional lending agencies will not and, as such, there are only a few options for the Buyers to seek financing should the need to do so.
With the higher and higher prices of single-family real estate and the continued low-interest rates offered for traditional mortgages the need for affordable housing is at an all-time high throughout the Sarasota Florida area.
Single-family homes, also more commonly known as real estate, have the ability to have any traditional lending agency provide financing should it need to be used to fund a property.
Since there are more lending options with less cash required on traditional homes comparing financing between the two is hardly a fair comparison.
Most mobile homes on leased land are purchased with cash, not financing.
With the rise in mobile home prices one needs to ask if the Seller is looking to increase the price of their mobile home exponentially further pushing out the availability of cash Buyers while at the same time financing is limited, is this really a good idea?
Here is an example:
The buyer has $40,000 to buy their new mobile home in Sarasota Florida.
The mobile home is worth $40,000 but the Seller is caught up in the real estate craze and charges $80,000 for their mobile home.
The buyer can’t obtain financing because the home is too old for lender requirements and doesn’t have an additional $40,000 in cash to purchase a home.
Buyer purchases inflated-priced single-family home, use $40,000 as a down payment for a home, gets traditional financing at record-low interest rates and their entire mortgage is less than the lot rent of the mobile home park.
The seller is stuck paying lot rent with a home that may not be able to finance.
Although this may sound like a far-fetched idea, we here at The Mobile Home Dealer have seen this happen time and time again throughout the first quarter of the year and don’t see it changing anytime soon.
When looking to sell your Sarasota Florida mobile home we always suggest pricing your home aggressively in order to bring the best cash offers to you as quickly as a time frame as possible. Getting caught up in the inflated pricing of a mobile home could lead to the Seller holding on to the home for several months with the added stress of continuing to pay for a mobile home they do not want.
Increasing the price of your mobile home will usually result in your home sitting on the market longer, while the Seller continues to pay lot rent, utilities, taxes, and all other carrying costs associated with owning that property. These continued monthly payments will eat into your profit even if you sell the home for a higher price.
We at The Mobile Home Dealer feel it is always best to price your home aggressively from the start and be willing to negotiate with the Buyer when they want to make an offer.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.