Property Q&A in Berryessa>Question Details

ONLYBUGOY1224, Home Buyer in San Jose, CA

I KNOE THE HOUSE IS OLD BUT WHATS THE CATCH WHY IS TOO LOW

Asked by ONLYBUGOY1224, San Jose, CA Thu Sep 20, 2012

--
This question is about this property: http://www.trulia.com/property/3089842933-2151-Oakland-Rd-59…

Help the community by answering this question:

Answers

6
Because it's not really a house ...

It’s a mobile home. It’s a depreciating asset – just like a car. In fact, it’s registered with the DMV, not the county.

Normally in real estate, the actual value of any house goes down while you own it, but the value of the land goes up. In other words, the house depreciates while the land appreciates. This is why you often see very old and decrepit houses being torn down and replaced with new ones – the value of the old home has depreciated to almost nothing, but the value of the land has gone up enough to sustain a new building being built on it.

In the case of a mobile home, you have the worst of both worlds:

• The value of the actual structure depreciates yearly – in this case, it’s now very old for a mobile home AND the price is now very low. It will only get lower.
• Since you do not own the land under a mobile home, you don’t have anything to appreciate. In fact, you actually rent the land so, instead of the property value “paying in” as the land appreciates, you are actually “paying out” every month when you pay the space rent. And … the rent will only increase.

Value decreasing, rent increasing … not a very good deal in my books.
1 vote Thank Flag Link Fri Sep 21, 2012
Yes that is a low price for a mobile home. You will learn that the prices vary by age, condition, park, and how much they charge for space rent.

Are you in the market for a mobile home?
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Fri Sep 21, 2012
When you purchase the mobile home, the land is not included. in this case, not only pay for the space rent, your also have to deal the regulations with mobile home park.

Best regards,

Debra Tsai Realty – Meeting Your Real Estate Needs
Debra Tsai, Broker
REALTOR®
Short Sale Specialist
Certified Broker Price Opinion Resource
Tel: 408-966-0088
Email: debratsaimail@yahoo.com
http://www.debratsairealty.com
RE #: 01332243
1 vote Thank Flag Link Fri Sep 21, 2012
Due to the fact that it is a mobile home built in 1973, it will be difficult to get financing. I have one lender that "might" loan on it provided you put enough down-payment. Also, the higher the space rent, the lower a seller will have to price the home in order to entice a buyer.

The rent on this home is approximately $1027 per month according to the listing on the MLS. Depending on your credit, the overall payment might not be too bad considering you would have a 4bed/2bath in the bay area with 1344 square feet of living space.

I sell this type of housing all the time. Only YOU can decide what is right for you.

Lawrence Gillen
Realtor/Manufactured Home Specialist
(408) 472-5582 Cell
Advantage Homes
lawrence@gillencentral.com
DRE# 01193237
HCD# SP1177640
1 vote Thank Flag Link Fri Sep 21, 2012
It is a mobile home. I hope you've noticed that...
Web Reference: http://talisrealestate.com
1 vote Thank Flag Link Thu Sep 20, 2012
Thank you for your question:

That is a mobile home built in 1973.

Remember that with a mobile home, you do not get any land with it. The land is what has value, not the mobile home itself.

That is particularly true of a mobile home that is almost 40 years old.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
.
0 votes Thank Flag Link Thu Sep 20, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer