Mobile homes are one of the most popular residential options across the country. They are more affordable compared to the standard brick-and-mortar homes, but that’s not their only appeal. Mobile homeowners have the option to place their home in almost any location they like! However, this means that most mobile homeowners don’t own land. Instead, they lease land in a mobile home community for an extended period. Without land, it can be tricky to sell your home if you decide to move. Check out these tips for how to sell a mobile home without land!
How to sell a mobile home without land
Before you even begin selling your home, there are several things you should know. First, the process of selling a mobile home without land is very different from selling a traditional home.
If you own the land where your mobile home currently stands, then your home is considered real property or real estate. In these cases, you can sell it the same way you would a traditional home. However, if the land does not belong to you, the mobile home is considered chattel or personal property. About half of the people who live in manufactured homes do not own the land, so it is quite common to sell a mobile home on what is known as a lot lease.
Another important thing you must know about how to sell a mobile home without land is the role of the park owner. They will have a lot of power and influence over who you sell your home to, so you must involve them in the process.
What is the role of the park owner?
When selling your mobile home, you must follow the stipulations of living in a mobile home community. First, you must ensure that the buyer is capable of meeting all the rules, regulations and the enforceable rules of the park. Secondly, the owner has a right to the first refusal. This means they have the right to purchase the home from you by matching the price of the prospective buyer. The first refusal rule does have limitations. If, for example, you are transferring your home to a family member, then the owner of the park cannot interfere.
How to price your mobile home
If you want to sell your mobile home fast without spending weeks (or even months) waiting for a willing buyer, you need to determine the right asking price for your home. Most of the time, when mobile real estate owners sell their homes, they do it at a high price because land appreciates over time. However, when you do not own the land, keep in mind that your mobile home has depreciated during the time you lived there.
To illustrate this, let’s compare mobile homes to cars. Mobile homes have the same documentation as automobiles. They also depreciate the same as cars. You can have a professional appraise your mobile home to determine it’s worth depending on its condition and location. If not, you can use the National Appraisal Guide to do it yourself.
How to list your home?
You might find it helpful to hire a real estate agent with experience selling manufactured homes. The agent will know the best option to list your home and get you a suitable buyer. However, should you decide to make the sale on your own, then prepare to do a lot of legwork. You will have to advertise, talk to the park owner and negotiate with the prospective buyers.
What are the required documents?
Once you find yourself a willing buyer, there are legal formalities to complete the sale. Some of the documents you must provide the buyer include:
- A copy of the seller’s Mobile Home Act written statement
- A copy of the community or park rules
- Details on the expected park charges in respect to water, power, sewerage, garbage, gas, outbuilding, parking space and other services provided by the park, including the next time they are due.
- A copy of the mobile home warranty if available
- A copy of the structural survey of your home carried out in the last 12 months before the sale
If these documents or some of them are not available, you need to provide the buyer with a written explanation as to why they are missing.
The next thing you should do is sign a Schedule 2 Notice of Proposed Sale Form with the buyer then take it to the park owner. The form notifies them that you are planning to sell your home and want to transfer the agreement to the buyer. The park owner can oppose the sale within a given period. They may object if the purchaser does not meet the minimum age rule, wants to keep more vehicles than allowed, or wants to keep animals not allowed in the mobile home community.
If the owners do not object within the given time, the sale can go as planned. The day you complete the purchase, you will need to sign a Schedule 4 Assignment Form. This will transfer your occupation agreement to the buyer. Upon completion, the buyer will pay you the amount and the commission agreed upon for the site owner.
Are you ready to sell your mobile home?
Now that you know how to sell your mobile home without land, you’re ready to start the process! Keep in mind that selling your manufactured home, especially if it is old will not be easy. Make sure that you and the park owner are on the same page about the sale to avoid any unnecessary complications. The park administrator might even help you sell your home or take control of the whole procedure in exchange for a commission.