Home Buying in Beech Bluff>Question Details

JT2002, Home Buyer in Beech Bluff, TN

Will brand new double wide mobile home depreciate in value??

Asked by JT2002, Beech Bluff, TN Sun Sep 21, 2008

Hi, I am considering to purchase a really nice double wide mobile home 32x76 I would pay cash (90k)... I am afraid though, that this will be a really bad investment. And that it will lose in value as soon as I buy it.. the agent says it wont, and that other houses in the area do not play a role if we ever wanted to sell it, but of course she wants to sell this, so I am not sure to believe her or not?? The houses on the street are all run down single wides (far apart) and this would be the only nice home.. the town itself is nice and a lot of people want to move there.. but I am worried about the area it is in..
I would appreciate some help in making my decision..
thanks

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18
TRUTH, LIES AND FAIRY TALES

I was in the same boat until I did research. I found that manyRealtors want to List your property at YOUR expense / loss in the hopes that someone else will sell it for them. Most all the Realtors I have dealt with would tell me oh yea, everthing appreciates!

I found a FALSE realization used are Comps. When looking at affordable mobile homes, most all Realtors I have found lump in trailer houses with $400,000 custom homes in order to get the "market value" up in any given areas. I found out that a trailer house (mobile home, manufactured home, whatever) is all one in the same. They are mass produced in factories then hauled to lots or a new customer's site. Most all are made with lesser quality building materials (but so are some expensive homes I have inspected), and most all of those l that I know of, contain plastic water plumbing where most custom homes do not. Therefore, in my opinion, comparing trailer homes to custom homes for comps is nothing but a "make you feel good" false realization.

At the end of the day, mobile homes DO depreciate and do not appreciate. Only the land MIGHT appreciate, but it depends on surrounding properties and our mobile home's condition. Test of truth.... Ask a Realtor to put in writing that a mobile home WILL appreciate or you get your money back. Watch the fancy footwork that follows. All of a sudden, even they won't guarantee custom homes will appreciate. A complete different story we are fed when first looking at either a mobile or custom home. What ever happened to Truth in Advertising?

Also consider that during a severe storm warning, in a regular home, you are told to go the center of your home for safety. In a mobile home you are told to "GET OUT". Guess it might boil down to how much you value you and your family's lives. Remember, a lot of damaging storms come in the middle of the night when many are fast asleep.......

Good luck in your search, but if I were to choose, I would first pick a good neighborhood or rural community and strongly consider having a "real" home built. Why buy a mobile home if it comes with almost the same monthly payments as a custom home??????????
3 votes Thank Flag Link Sun Apr 26, 2009
TW 2009 you are wrong i lived in kansas for 10 years in a sturdy home and it dosen't matter were your at in a tornado if you value ur life you will eathier have a basement or a storm shelter under ground. i seen both custom homes and doublewides both destoryed by tornadoes and same result about evertime they both provide little shelter in a direct hit from a tornado.
1 vote Thank Flag Link Wed Aug 26, 2009
A double wide is a mobile home as well as a manufactured home. When not on land, they are personal property, just like a car, and actually come with a certificate of title and you pay sales tax on them, just as on a car. When they are affixed to real estate, they are considered a part of the real estate, and the certificate of title should be retired and an affadavit of affixture should be filed. MAKE SURE THIS HAPPENS, NOT ALL REALTORS KNOW THIS. If it is affixed to land or not, it will depreciate. Mostly due to the fact that a potential buyer you may have down the road will probably have to finance the purchase and getting financing for a double wide, on or off land, is difficult at best, especially when they become 10 years or older. Rural Development will not finance them, FHA will, but you need 3.5 percent down payment, some banks will, but IF they do (big if) they will require a 20 percent down payment and many people just don't have that nowadays.

Double wides are very attractive now a days and very comfortable and conveniently built with open spaces and great bathrooms and walk in closests, great kitchens etc. So if you want a nice place to live and can't afford something that nice in a stick built, buy it and live in it, but do NOT expect it to appreciate, even on land. It will be a very difficult resell in 10 years. They are not required to be built to BOCA code, therefore people can only expect that they are not, even if you do buy it with upgrades and drywall etc. If you want a offsite manufactured home that is a much better resell, buy a MODULAR built to boca code.

Please don't get down on all Realtors just because you deal with one that is either uninformed or being greedy, the majority of us out there are killing ourselves to provide excellent service and knowledge base in this tough market. A knowledgable Realtor does much more than unlock the door so you can view homes. The majority of us provide a service much worth our commission and more....and make sure your agent is a "Realtor" a licensed member of our local, state and national association of Realtors!!!
1 vote Thank Flag Link Wed Aug 12, 2009
Trailers are like cars. Depreciate as soon as you buy them.
0 votes Thank Flag Link Tue May 10, 2016
Look up the real estate term regression. You would lose value if this were among mostly single wide homes.
0 votes Thank Flag Link Mon Apr 11, 2016
yes it will as soon as they pull one off the lot it will depreciate I know this because it happen to me !!!!!!
0 votes Thank Flag Link Wed Aug 6, 2014
Your fears are justified, mobile homes do tend to depreciate in value. Secondly putting it in an area of lesser homes will also hurt the value of your investment. It never pays to be the nicest home in any neighborhood.

I'd save my money and either look elsewhere for a site or forget mobile homes entirely and look for an existing home. You may also wish to consider a modular which is totally different from mobile home and these do not depreciate as mobile homes do, they maintain their values are directly tied to the market, while mobile homes are more like cars, they depreciate the moment you buy them in nearly every instance.
0 votes Thank Flag Link Tue Sep 10, 2013
double wides are just like cars the older they are the less they are worth hope this helps you out
0 votes Thank Flag Link Tue Sep 10, 2013
Tell that to my 1970 Chevelle SS.
Flag Sat Dec 20, 2014
JT2002,
I bought a brand new 28 x 80 double wide and put it on a full basement with 2 garage doors in the end and a wall across the basement to create the garage. I put it in an area that wasn't the best location. With the ground, basement, septic tank, and county water, I had $114,000.00 invested.
After it was ready to move in, the bank appraised the whole thing for only $90,000.00. So would it be a bad investment? I would say yes if you plan on reselling it. I would say no if you make it your own last home.
0 votes Thank Flag Link Tue Jul 23, 2013
Do you still live there? We are looking at a manufactured home on a basement as well. The lot is simply beautiful. The home was built in 1999 and has a front porch, a covered deck and a deck. It's nice but I just want to know what problems to look for.
Flag Mon Mar 14, 2016
Mobile homes depreciate, and even if you do many upgrades, it will still at the end of the day be worth less than any house of the same size. Show me a mobile home built in 1978 that is worth the same as a house of the same year and I will eat my hat. Upgrades to the mobile home and property may slow the depreciation rate, but trust me, you'll never get your money back on the investment in most cases and if you sell your home, you'll find financing is extremely limited for interested buyers. I have seen too many mobile homes be abandoned and repossessed due to the fact no banks want to finance them. If this is to be your home for the rest of your life, then buy it. Just don't expect to recoup your investment, sell it for a profit or refinance it at a lower rate.
0 votes Thank Flag Link Wed Jul 11, 2012
Find a new agent. She is only tring to make a sale and is not looking in your best instrest. I would not buy a nice trailer in any lot next to a bunch of run down trailers. The neighborhood and the houses around you have a big factor in your sale. The lot rent may be cheap, but you will only get what you pay for remember that. It will also lose value, just think of it as a car once you put miles on it the value depreciates. It could be really hard to sale a mobile home and they will depreciate faster than a house. I would look into a nicer park. I hope this information was valuable to you, Good luck on your search.
0 votes Thank Flag Link Tue Mar 15, 2011
http://www.mhplanetrepo.com/
Hi, go to this sight and look for your home...you can often find a nice double wide for half of the price you quoted....I know because I buy homes that are in kansas and put them on my development...
any questions feel free to email me at
PappaJRoach@cox.net
0 votes Thank Flag Link Sun Jan 10, 2010
Good evening,

Ruth and I are retired. We want to live out out our investment. We have a house that is paid for in Houston Texas but don't want to live there any longer. We have been looking at remanufactured homes.
We have been given the opportunity to buy a 5 year old remanufactured home (by Clayton homes) that has been dis continued.
If the sale price of this manufactured home is X what should my offer be on it (as it sets on their sale lot) today, five years later?
Terry
Flag Thu Apr 11, 2013
It will almost most certainly depreciate. A neighborhood full of rundown single-wides? That most certainly affects the value. Don't buy or don't pay anywhere near the asking price.
0 votes Thank Flag Link Wed Sep 2, 2009
The answer is - definitely depreciate. In fact, you will lose 1/3 of it's value as soon as you purchase it. Especially, if you put it down on the property you are talking about.

New manufactured doublewide homes are not for real estate speculators. They are for people who want a nice place to live and don't want to have to pay for a custom built home or live in old housing built 30+ years ago.

If you don't plan on living in it, don't buy it.
0 votes Thank Flag Link Sun Aug 23, 2009
it depends, is it on its own land, is it on a foundation or skirted and is there any lot or rental fees. houses on their own lots apporeciate more than ones in parks. in addition what is around you also affects property values... goiod luck with your purchase
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Oct 4, 2008
Yes. The double wide will depreciate. If you are going to get a few acres of land with the mobile home, the land will probaly appreciate if you are buying in Beech Bluff.
0 votes Thank Flag Link Sat Oct 4, 2008
Mobile homes (not manufactured homes) typically tend to depreciate (like a used car). I agree with the other realtor's answer. It really depends where the mobile home sits and if it is on a foundation. The land the home sits on will probably appreciate to offset the depreciation of the mobile home.

I think you should also look at the trends of the street/neighborhood. Does it appear to be going down hill or cleaning up and upgrading? Your area will affect your appreciation/depreciation potential as much as the type of home you live. Remember the three Ls - Location, Location, Location.
0 votes Thank Flag Link Mon Sep 22, 2008
If the home sits on a permanent foundation, then it will appreciate....albiet VERY slowly! If it's NOT on a permanant foundation, then you would have to put one on if you ever decide to sell it. Why hasn't your realtor run a market report on the area? This will give you a better idea of appreciation/depreciation....if they won't, find someone who will!
0 votes Thank Flag Link Mon Sep 22, 2008
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