We will assume that you have selected a person and/or firm to handle the sale of your manufactured home. Together you have to determine the asking price. This may be one of the most critical decisions you make.
It is easier to price a home if it is on land you own. These homes tend to depreciate less than homes on leased land. Some agents will tell you (as one did during my interview) that manufactured homes depreciate as much 25 percent the day they are pulled off the manufacturer's lot. Many factors affect sale price and the amount of depreciation. Everyone wants top dollar, and we all hate the idea of losing money on a home we bought and put money into for improvements. But be realistic in pricing. Either you or the sales agent should do a study of comparable homes for sale in your community. Some sales agents/firms will ask you to complete a disclosure form listing anything that might be wrong or need repair or replacement.
Here are some of the factors that determine the sale price:
AGE: The older the home, the harder it is to price. Older homes are more difficult to finance. If the home was built before Hurricane Andrew in 1992, its value is diminished. The building codes imposed after 1995 as a result of Andrew make later-model homes more desirable.
THE MANUFACTURER: Sales agents categorize manufacturers as first tier or second tier.
CONDITION: What is the condition of the home inside and out? What will it take to bring the home to top quality? What is the square footage? How many bedrooms, how many baths? What kind of lot: interior, lake view, golf view? What improvements have you made? CURB APPEAL: How is the landscaping? What is the home's exterior appearance?
INTERIOR APPEAL: If you are selling the house furnished, will it appeal to a potential buyer? In a some cases it might be wiser to sell the home unfurnished. What are the house's shortcomings? Are there problems with the roof or appliances? How old are the air conditioner/heater, water heater, etc.?
LOT RENTAL COST: What will the park charge when the lease comes up for renewal? The amount will be more than you are paying now. Check with park management to see if it has a cost projection. THE PARK: What are its strengths? Is it designed for senior citizens or families? How conveniently located is it? Is it fully developed, or are new homes being sold? What's the price of utilities? What amenities does the park offer: golf, tennis, shuffleboard, swimming, clubhouse and social activities? What is the "eye appeal"? Is there a favorable relationship among park management, residents and the homeowners association? How many homes are for sale?
INSPECTIONS: When were your tie-downs last inspected or repaired? Will you provide the buyer with a tie-down inspection certificate? Will you provide a termite inspection certificate? Most buyers will hire an inspector to go over your home from the roof to the crawl space. You need to understand what the inspector will find and price accordingly.
As you can see, pricing your home is not easy. Selling won't be easy, either, unless you happen to be lucky. Be prepared to negotiate the selling price. You should have some idea of just how much you are willing to reduce your price.
Write to Len Bonifield at elb@gate.net or fax to (863) 853-8023, or phone (863) 858-1557. Please include your e-mail and mailing address. Bonifield is a manufactured-home resident and a past HOA president and former officer of the FMO District 1 board of directors.
