Mobile Home Appraisal/Valuation

4 Replies

Quick question for the masses.  What is the best way to go about getting a reliable valuation on a mobile home?

Since mobile homes are personal property (i.e. automobile) the sales records are not as readily available unless the home was listed on the MLS. I have found that during renovations my best source of information has been the park owner and the neighbors who drop by to see what is going on. Any other ideas or avenues you may suggest?

Thanks!

Jake

One thing I recently did was to call my insurance company to get insurance on the home I bought, that is when I found out the value they would insure it for was $3,000.00 less than I paid. Oh, darn.  Now I know!

Sounds like you already bought it, so it may be too late. It will be hard to sell unless you finance it yourself or they have cash. Most banks will not do mortgages on mobile homes. I think they make great rental properties to hold over the long term. To determine the value, go on Craigslist and see what people are pricing them for. BP has a few podcasts on the subject as well as other popular REI podcasts.

@Shelli Callan  - Thanks for the idea.  Typically I'm buying homes well below market, so my insurance agent is actually trying to get me to have more coverage than what I have into a property.  He sometimes forgets that all I want from insurance in a catastrophe is the ability to bulldoze it and walk away with what I've got into a property.  I don't need to rebuild it! 

@Anthony Dooley - I had a general idea of what places in the neighborhood where selling for via the MLS prior to buying the home ($30K-40K), but I was really thrown for a loop when a neighbor said she just bought her house in February for $54K! Since your post, I have been checking craigslist with more regularity. Thanks for the advice!

Originally posted by @Jake Hottenrott:

@Shelli Callan  - Thanks for the idea.  Typically I'm buying homes well below market, so my insurance agent is actually trying to get me to have more coverage than what I have into a property.  He sometimes forgets that all I want from insurance in a catastrophe is the ability to bulldoze it and walk away with what I've got into a property.  I don't need to rebuild it! 

@Anthony Dooley - I had a general idea of what places in the neighborhood where selling for via the MLS prior to buying the home ($30K-40K), but I was really thrown for a loop when a neighbor said she just bought her house in February for $54K! Since your post, I have been checking craigslist with more regularity. Thanks for the advice!

 Hi Jake,

 It depends on the area you're from but financing mobile home parks or financing mobile homes themselves are a different affair. Like others have mentioned you may have to seller carry or other forms of creative financing. I know some credit unions that help home owners finance mobile homes but its few and far between.

As for mobile home parks, those tend to be bankable if the income track record is stable and consistent banks may be able to lend against the cash flow of that income producing asset to a certain percentage of the net cash flows you receive per year. They want to ensure you'll have reserves to be able to pay them back of course.

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