Travis Daggett with Cornerstone Properties in Eugene, talking today about selling your manufactured home.
Good, Bad, or Ugly?
A lot of people are confused about manufactured homes. They maybe have some misconceptions about them, thinking they’re good or bad or somewhere in between. So one of the real common concerns, or most common concerns about manufactured houses, and if you’re looking to sell your manufactured house, something you need to be aware of is financing. First though, let’s go back just one step and just talk about what a manufactured home is.
So, Just What Is a Manufactured Home?
A manufactured home is a house that’s built in one place and then moved to another place. So with the manufactured home, it’s not built on-site. It’s not stick built, is another word. Now, sometimes people say that manufactured homes are not on foundations, but that is not always true.
How Many Buyers Can You Get?
So one of the key areas with manufactured homes is financing. And here’s why this is important. If you’re wanting to sell your manufactured home is, the financing determines how many buyers you have for your property. In other words, if your property can’t get certain types of financing or most types of financing, now your buyer pool is shrunk way down. So that’s going to decrease the price that you’ll probably be able to get for the property. It’ll decrease the number of buyers that are able to purchase your property and it’ll probably take longer to sell. Now on the other hand, if you can open it up to the largest number of buyers, because most of them can get financing or I should say, most lenders will lend on a manufactured home, then that’s better for you.
So a common misconception is that banks or lenders won’t lend on manufactured homes. And that’s just not true. USDA will lend on manufactured homes, FHA, VA, they’ll all loan on manufactured homes. Most lenders will. Now if the manufactured home is over 20 years old, that’s when most lenders fall off and they won’t lend on them. Now why is that? That might be an indicator that manufactured homes don’t hold their value and don’t last as long. It happens. A lot of the time manufactured homes, at that 20 year mark, they start to really break down quickly. It’s kind of like certain makes and models of cars. If you have a Toyota or a Honda or a Nissan you could get 100,000 miles, you’re good for another two or another 100 or even go up to 300,000 miles. There are other makes and models of cars that you get to the 100,000 and they’re just about done or they’re already done. So kind of along those lines. Just something to take into consideration.
So if you are considering selling your manufactured home, that’s going to be important information to know and to share with potential buyers. For example, if it’s older than 20 years, you’re going to need to take that into consideration. If it’s not 20 years old, maybe it’s just manufactured 10 years ago, that’s a whole different story.
So I hope that clears that up a little bit, about selling your manufactured home. If you have any questions about that or anything else with real estate, just post your comments and I’ll answer them as soon as I can. Thanks.