One When it comes to selling a home, whether it's a mobile home or manufactured home, understanding the distinctions between the two is crucial. While the terms are often used interchangeably, there are significant differences that can impact the selling process. While many of the issues are similar to buying a house, mobile and manufactured homes have very different concerns to be aware of. In this blog, I will explore three key differences to consider to when selling and buying a mobile home versus a manufactured home.
1.
Legal and Regulatory Variances:
One of the primary
differences between mobile homes and manufactured homes lies in their legal and
regulatory classifications. Mobile homes are generally older structures,
typically built before the implementation of the U.S. Department of Housing and
Urban Development (HUD) code in 1976. These homes may be subject to different
building standards and codes, making it important for sellers to be aware of
any relevant local regulations.
On the other hand,
manufactured homes are built according to the HUD code, which sets specific
standards for construction, design, and safety. These homes are typically newer
and may offer more consistency in terms of quality. When selling a manufactured
home, it's essential to provide documentation that certifies compliance with
HUD standards, which can positively impact the home's marketability.
2.
Depreciation and Financing:
Mobile homes and
manufactured homes can differ significantly in terms of depreciation and
financing options. Mobile homes, being older structures, may have experienced a
higher degree of depreciation over the years. This can affect the home's
overall value and make it challenging to secure traditional mortgage financing
for potential buyers. Sellers should be prepared for the possibility of cash
transactions or alternative financing options.
Manufactured homes, built
to HUD standards, may retain their value better than older mobile homes.
Additionally, these homes are often eligible for financing through FHA, VA, and
conventional mortgages, providing a broader range of options for potential buyers.
Sellers of manufactured homes should highlight these financing opportunities to
attract a larger pool of qualified buyers.
3.
Land Ownership and Location:
The issue of land
ownership is another critical consideration when selling mobile homes versus
manufactured homes. Mobile homes are often situated in mobile home parks where
homeowners lease the land from the park management. This arrangement can impact
the resale process, as potential buyers must either assume the lease or in rare
instances, relocate the mobile home.
Manufactured homes, on the other hand, may be located on private land on permanent foundations owned by the homeowner. This can be an attractive feature for buyers, as it provides a sense of ownership and control over the property. Sellers of manufactured homes should emphasize the advantages of owning both the home and the land, potentially making their property more appealing in the market.
Selling a mobile home and a manufactured home involves navigating distinct challenges and considerations. From understanding the legal and regulatory, to be discussed in Part II, to variances and recognizing the impact of depreciation and financing options, sellers must be well-informed to make the most of their real estate transactions. By highlighting these key differences, sellers can better position their homes in the market and attract the right buyers for a successful sale with the help of a Realtor.
Call Virginia Hall, Realtor, Certified Residential Specialist
DRE Lic #01409760
(6196) 258-8585
