Human beings can sometimes be predictable. Common mistakes are common for a reason. Whether you are a future mobile home owner or newer mobile home investor, there are common pitfalls to look out for along the way to mobile home ownership. Take the time to learn from the mistakes of others to prevent duplicating the same mistakes in your next few used mobile home purchases.
5 Common Mistakes Used Mobile Home Buyers Commit
1. Not Hiring an Inspector
For anywhere between $200-$500, you can have peace of mind that a semi-experienced inspector has combed under, through, and over your future mobile home dwelling or investment property. An experienced home inspector will be able to spot repairs and future problems you may likely have missed during your inspection. These repairs may allow you to renegotiate a lower price or better terms for the property. In many cases, the inspection will more than pay for itself.
Pro Tip: Do not be afraid to ask if an inspection company has experience working with manufactured homes. Ask this inspection company for the most experienced inspector with regard to mobile homes. Do not be afraid to follow the inspector around and ask questions.
2. Not Seeing Past Minor Issues
Many used mobile home buyers run out of a house if they see cockroaches or holes in the floors. While I am personally neither a fan of cockroaches or holes in my floors, I do have a good imagination and understand how pest control and carpentry function. With a small amount of time and money, these cosmetic and minor structural repairs can help save you thousands of dollars when purchasing your next used mobile home. Where other buyers get scared, you will see opportunity.
Pro Tip: If inside a park, ask the park manager(s) to refer you a mobile home handyperson they trust and like. Ask this handyperson if he or she will walk through the home with you to outline some of the repairs needed.
3. Becoming Emotional
While purchasing your next primary residence, it can be a battle of emotions and logic. Try to err on the side of logic, and continually ask yourself if this home will be profitable when you aim to resell it in the future.
Disclaimer: If you are planning to purchase and live in a home long-term, then by all means, you should be happy with the location, floor plan, view, neighbors, etc. This may encourage you to overpay for a used mobile home. Simply remember that when you resell the home, your next buyer may not be as passionate as you.
Attention Investors: This section does not apply to us. Unless you are trying to place a feather in your cap with some prestigious piece of property, do not let your emotions get tied up in any negotiation or deal. Always be willing to walk away.
4. Being Ignorant About Financing
Banks and other lending programs are becoming more and more commonplace with regard to mobile homes in pre-existing mobile home parks and mobile homes attached to their own private land. Contacting local credit unions and banks in your area, as well as searching online for “manufactured home lending in [your state]” can absolutely point you in the right direction. Understand what types of mobile homes are financeable and what different programs exist for you based on your credit and work history.
Pro Tip: If you are an investor, then you will wish to form a relationship with a friendly financing company that offers lending to more credit challenged people.
5. Leaving Opportunities on the Table
Q. Do you know what is for sale within a 50 mile radius around you? (If this will be for your personal residence and you do not wish to live within 50 miles, then by all means, shorten this to the number of specific miles for you.)
A. The answer is most likely a strong “no.” Many mobile home buyers make the mistake of only driving through a handful of parks and searching online for a few days before quickly negotiating and purchasing a used mobile home they may likely have overpaid for.
Pro Tip: Make certain you know exactly what is for sale throughout the territory you are investing within or wish to live in. Contact as many park managers, real estate agents, and sellers as possible to find out what and why people are selling.
Aim to not make the same mistakes as countless others. These mistakes cost you time, money, and stress. Make sure to go into any real estate transaction with a clear mind and clarity of your situation and end goal. There will always be more opportunities that come around the corner. Always act with clarity and purpose.
Investors: Have you made any of these mistakes before? Anything you’d add to the list?
Leave your comments below!