Best Way To Figure Out The Market Value Of A Mobile Home?

[Desmond Jackson]

I am interested in rehabbing/wholesaling a mobile home. I feel as though I am getting a good deal but, I am unsure as to what the current market value on the property is. The only thing I have to go on is the bill of sale from 1 year ago. Please help!

[John Fedro]

Desmond Jackson, How much will you be in the home after all repairs? What state ate you located in? And... do you need to sell the home for all-cash or can you accept monthly payments for your profit?

You mentioned that you will either wholesale this home or rehab it... in my experience many newer investors can easily over improve the property and not get their money back out. Also, selling the home (quickly) for an all cash sale may be more difficult that you may think. Be ready to sell this home for payments if no cash buyers come your way within a few weeks (unless you have a deal worked out with the park where you pay no lot rent fees while vacant).

As far as a price goes you will not know what price you can sell any mobile home (in a park) for until you test your market for used-mobile-home-buyers and one actually brings you money. Cash buyers come and go with the wind. Get a general price to start advertising with by finding out what other comparable homes have sold for in the park... find out how long it took these comparable homes to sell. Use the comparables with the shortest "time on the market". Sandy gave a great suggestion to use the NADA guide, this will give you an idea of price but this "price/value" does not mean anyone will pay this amount for your home. An NADA guide is best used when obtaining insurance in my experience.

So long story short is to test your areas for cash-buyers right now while you are working on the home and paying holding costs anyway. Use newspapers or c-list as it is free and allow people to call you to inquire about the home. It is your choice if you show them the house or not, but at least you will be confident that in your area there are buyers for X bedroom and X bathroom mobile home at the sales price you are offering.

I hope this makes sense?

Brandon Turner Thanks for the shout-out.

Best,
John Fedro