Tag Archives: Sales

Mobilehome and Manufactured Homes Sales

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Who handles the sales of mobilehomes and manufactured homes?

Only dealer-brokers licensed by the Department of Housing and Community Development (HCD) handle sales of new manufactured homes and mobilehomes. These new homes come with a one-year warranty from the manufacturer, but the warranty usually does not cover transit damage and may not apply to faulty installation. Used mobilehomes do not come with a warranty and may be sold by dealers, real estate agents, or the homeowner, who must provide the buyer with a resale or transfer disclosure statement (TDS), as mentioned previously. Complaints about mobilehome dealers should be directed to the Mobilehome Ombudsman at 800.952.5275, or ombudsman@hcd.ca.gov.

What if there is an issue with my new mobile home?

If there is a safety or construction issue with your new mobile home, you must notify the manufacturer, retailer, or installer. If the problem is not resolved, you may be able to use the HUD Manufactured Home Dispute Resolution Program. This program aims to provide timely resolution (of eligible disputes) between manufacturers, retailers and installer of manufactured homes regarding the responsibility of correction or repairs of defects in manufactured homes.

There are a few eligibility requirements to participate in this program. For example, the owner of the mobile home needs to report any issues to the manufacturer, retailer, installer, State Administrative Agency, or HUD within one year after the date of installation. In addition, not all States participate in this program, due to some administering their own dispute resolution programs.

If you are eligible to participate in the program, you can submit a request for dispute resolution in one of five ways: by email, phone, fax, mail, or online. The program outlines key information to include in your request, if you are not using the online form to submit the request. Make sure to visit their website to see if you are eligible, and read through all the instructions in order for your request to be processed. In addition, you can watch a very informative video about the program on their website.
Resources: http://www.huddrp.net/

Video Link: http://www.huddrp.net/video/

HUD Administered Dispute Resolution Program:

571-882-2928, info@huddrp.net

 

Mobile Home Values and Sales Prices

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At least two firms publish information on mobile home values – Kelly Blue Book and the NADA Guide. Like other personal property (cars, airplanes, boats, etc.) the value of a mobile home depreciates as it ages. Values are provided in these evaluation guides for mobile homes/manufactured homes located on a sales lot as well as those located in a rental mobile home community. Obviously, the value of a manufactured home located on free land is driven by the value of the land rather than the structure sitting on the land.

Regarding mobile homes in rental communities, there is an added “value” attributed to a manufactured home being sold “in place” in a mobile home community. Although the value of the land is not part of the value or sales price of a mobile home, there is a value attributed to the fact the home is located in a park and the assumption that a buyer will pay a premium for the ability to purchase the home and have it remain in the park. In other words, there is value attributed to the “leasehold” interest assumed by the buyer of a mobile home in a rental community. It is not uncommon for purchasers of mobile homes to pay many thousands of dollars for an old mobile home that literally has no value simply because of the location of the home in a desirable community.

The factors considered in valuing a mobile home located in a community include the location of the park, the amenities and general appearance/condition of the community. The values assigned by the appraisal guides to mobile homes located in mobile home parks do not take into consideration the market conditions of a region or the costs associated with living in a particular location or park.

All of these factors and others come into consideration when a mobile home is sold “in place” in a mobile home park. As an example, the same make and model 40 year doublewide mobile home located in a mobile home park on the ocean will sell for more than the same home located in a park located inland. In the case of the ocean front mobile home, the purchaser is not paying for the “value” of the mobile home, but rather is paying a premium to the seller because of the location of the mobile home.

In addition to the location of the community park, the cost to live in a park or region is also a factor in the sales prices of mobile homes. The amount a willing buyer and willing seller agree upon depends on the purchasing power of the prospective homebuyer. In other words, the monthly housing budget they have to spend. By of an example – a typical mobile home buyer may have a monthly housing budget of $1,200. This housing budget must cover the rent, mortgage, and utilities. They are looking at the same make and model of mobile home in two different parks in central Orange County with similar amenities. One community charges $500 a month rent and the other charges $1,000. There is more than likely a difference in the sales price of the home as well as the rent. The home in the park with the lower rent is selling for thousands of dollars more than the one in the park with the higher rent. The buyer has a choice to pay more of their budget for rent or more for the mortgage.

Some mobile home owners who chose to pay less for the home and more for the rent are upset years later when they say they can’t sell their home for as much as the owner of the same home in another park with lower rent. Nothing has changed, the payment is made up-front in higher cost of purchasing the home, or paid incrementally over a long period of time in rent.
Additionally, it is not uncommon for the buyers of older mobile homes to pay cash for the home, making the lower priced home more attractive knowing that the only housing payment will be the monthly site rent.