Do you want to sell your mobile home but don’t know where to start?
If your answer is yes, don’t worry, you’re not alone. The process can be intimidating, especially if you’re a first-time seller. If you are inexperienced, it’s easy to make mistakes.
However, the more you learn, the easier the process will be and the less stressed you will be. So here, we’re going to look at four key things you need to know before listing your mobile home on the market.
1 – Not your average property
Mobile homes or manufactured homes are a unique type of property. The fact that you can potentially move them makes all the difference. It means that many people might own the home but not the land it sits on. Instead, they rent the lot from a mobile home park or a the owner of a private plot of land.
As a result, mobile homes often belong to different categories of property, which can affect the buying and selling process.
Your mobile home is considered real property or real estate if it meets all of the following conditions:
- You own both the home and the land it sits on.
- Both the building and the lot are being sold together.
- You have fixed the mobile home to the land with a permanent foundation.
In this case, you can sell the property more or less as you would traditional real estate.
On the other hand, if the mobile home doesn’t meet these conditions, it is personal property or chattel. This is going to affect the insurance, the type of financing the buyer can get, how you need to pay taxes, and so on.
Aside from this, it means that the owner of the lot will probably need to be involved in the agreement. For example, if you are leasing land in a mobile home park, you will need to follow park rules about buying and selling homes.
2 – Options for listing
The next box to check is deciding how you are going to sell and list your mobile home. You will have two main options.
- Realtor: The benefits of selling through a real estate agent is that it can save you loads of time and effort. And an agent will have access to far more resources to advertise the home. But the agent will ask for a commission, and you may need to find one that specializes in mobile homes.
- For sale by owner (FSBO): Selling the house yourself will save you some money. However, you will have to do all the legwork yourself. And that includes paperwork, advertising, staging, and more.
Both options have their pros and cons.
3 – All the paperwork
Another crucial factor to consider is the paperwork. Yes, the administration can be a drag. But it’s an essential part of any property sale. Without it, the transaction might fall through.
Plus, it’s the best way to protect both you and the buyer.
The closing documents that you will need to have in order are listed below.
- A bill of sale is a document that describes the terms of the transaction. Both you and the buyer will need to have a copy of this.
- The title for a mobile home may differ from that of site-built homes. And you may get it from your local motor vehicle department. And after the sale, the buyer will need to register it in their name.
- A promissory note is necessary if you are accepting monthly payments for the home. You need to keep the original and give the buyer a copy. This will specify all the details surrounding the payments.
These are the primary documents you will need. However, it can differ depending on the situation. Additional forms you might need are your proof of taxes, a seller’s information sheet, and an agreement after closing.
4 – Setting the right price
Last but not least, you should carefully consider what you want to ask for the mobile home. Finding the right price is all about balance.
First, you undoubtedly want to get your money’s worth. You should feel comfortable with the amount that you will get out of the sale. That’s why it’s crucial that you call a professional to inspect and appraise the property.
Many buyers will insist on this, so it can be helpful to get this out of the way early in the process.
One potential issue with mobile homes is depreciation. Due to several factors such as the fact that they are moveable, mobile homes depreciate. This means that they will lose value over time. Exactly how much it will affect the price, however, will need to be calculated on a case-by-case basis.
For example, land usually gains value over time, so this can help cancel out the loss.
Understandably you want to get as much as you can out of the sale. However, you don’t want to overcharge and risk losing potential buyers. Ideally, you want to sell the mobile home in a timely manner.
Therefore, it’s vital that you do extensive research on the current market in your area and discover what people are asking for similar properties.
Improve your prospects
As you can see, there are many factors that go into buying and selling any property, including mobile homes. Because of this, these transactions aren’t always clear-cut. Even making tiny changes can significantly affect the success of the sale and, of course, the final price.
One of the best ways to improve your selling prospects is by redecorating and remodeling the mobile home. You can’t go wrong by trying to bring trendy styles into the decor, such as industrial or cozy farmhouse themes.