How do you determining the value of your manufactured home when selling for payments or as part of an seller financing option? Here is a great question –> What is the value of any item or property?
The answer is exactly:
===> what a buyer is willing to pay for the mobile home with cash, payment, and/or trade.
===> whatever the market will pay for the mobile home during that time frame.
Understanding Down Payments:
If you plan on reselling mobile homes via monthly payments then you will most likely be requiring a down payment from your prospective tenant-buyers.
The down payment of your mobile home will very depending on the condition of the home at the time of resale. This means a “handyman special” type of mobile home may only attract $2000 or less for a down payment. However a home that is “move-in ready” will attract a much more substantial down payment depending on your local market. Always know your exit strategy before purchasing any and every property you own.
- The GREATER the down payment the LOWER the total purchase price you may charge over time.
- Conversely, the LOWER the down payment you accept from a low-risk tenant-buyer, the GREATER total price you may charge over time for the property.
Pro Tip: A down payment greater than 20% the sales price will significantly reduce a tenant-buyers default rate.
Bullets to Consider:
- Do not undervalue the inexpensive mobile home you just bought.
- Make your Move-In Fees and monthly payments realistic and fair for your tenant-buyers. Base them on your local market mobile home review and the as-is condition of the home you are selling.
- The future is bright and ours for the taking!
If you have any mobile home specific questions please do not hesitate to reach out and get them answered.