House buying advice...

[123c]

My Fiances mother is offering to sell us her place, and I am not sure if we should buy it or not. It's 1985 double wide, on a nice sized lot just outside of town. It's got a very nice view of the mountains from the back yard. There are also many nice houses going up in the area. My only reservations is that it is a mobile home, and we might not be able to get our money out. On the other hand it has a very nice view, and a very nice lot.

[Graplr]

A mobile home is a depreciating asset. I would never buy one. And I would be very hesitant doing business with family. If I couldn't afford to buy a house (not a mobile home) I would rent as cheaply as I could and save, save, save.

[Brian Carlton]

Originally Posted by 123c

My only reservations is that it is a mobile home, and we might not be able to get our money out.

If you buy it at an attractive price, why is there a concern that you won't be able to sell it for more than you paid?

Do mobile homes have a limited service life............30 years and they are off to the dump??

[t walgamuth]

I'd say it all depends on the big picture. If buying that will allow you to save money and eventually build your dream home there it might be a good deal. If building a home there is against some zoning rule then maybe not. You may be able to sell off the double wide and relocate it when you build the new home.

I would recommend discussing your long term plans with the mom though (carefully) so that she does not feel betrayed or similar when you sell off the double wide.

[450slcguy]

I rented double wide for a 2 weeks in the mountains of western NC. It was about 30 years old and starting to show it's age. But it was fairly nice, a 3 br, 2 bath, w/jacuzzi in master bath, decent kitchen, brick electric fireplace in living room, and a nice deck overlooking the mountains and stream. It needed some work, as water was starting to take it's toll on the joining sections and outer walls(neglect). If the one you're thinking about is older, I'd be very careful about condition. I didn't like the exterior doors ways, felt very flimsy and unsecured. But as far a living space, it wasn't bad.

As an inexpensive home, maybe $40-50 w/lot I could deal with it just fine. I would think a modern unit that is well maintained would be a good choice. It all depends where it's located. In many parts of the country, these units are perfectly fine and well accepted. Other parts not so good, mostly because of snobbery. Many people don't need a custom built dream home to feel good about themselves.

If you get it for a reasonable price, like the lot, and is in good physical condition, I see no reason why it wouldn't be a comfortable place to live for many years. Sure beats paying rent and having nothing to show for it. An added garage/barn would be ideal, as no basement or attic leaves no storage space. That would be a big concern for me and of utmost importance in viability.

[TMAllison]

Value the deal based upon the value of the land only, unless the lot is part of a mobile home park.

[Brandon_SLC]

Yeah, I'd buy it and start saving to build a new house on the property.

I have nothing against manufactured homes, I've seen some very nice ones. Unless it's a very very nice one with lots of upgrades and permanently installed, the house itself is going to depreciate.

[Hatterasguy]

Mobil homes are tough, since your really not buying a house. Buying a mobil home is more like buying a car. After so many years they are worthless just like a car.

What you are buying is the dirt, if the land is good, and the price is right go for it. Because while the trailer will depreciate to nothing, the land will hold its value. You can eventualy build a house on the land if you want. Or sell it off to a developer.


Also just a heads up, if you need to finance it get that in order before you buy. Banks usualy won't lend on mobil homes, but they will lend on land. I'd see if her mother will carry the note.


You need more info to determine if this is a good deal or not:

How much land? What is the zoning? What is the area like? Spetic or sewer? City water or well? What are some comps for similer parcels? Lots of info needs to be collected.

[123c]

The lot is about twice the size of the lots going for $75k up the street, but nice new homes are going on those lots.

[MercFan]

Originally Posted by 123c

The lot is about twice the size of the lots going for $75k up the street, but nice new homes are going on those lots.

When I was growing up we rented a trailer (double wide) in a nice mb park in a small town in Michigan. I have fond memories of those times.

Years later my wife and I had a friend that lived in a mobile home - she was blind and my wife was helping her. There were few things that I noted mentally over time that made me think I would never buy one of these: 1) Her mortgage percentage was WAY above what you'd pay for a house attached to terra firma (that's something to check) and 2) in addition to the high mortgage she also was required to pay LOT RENT each month - since she lived in a mobile home park. I don't remember the exact amount but it was substantial. This may not apply to you if you are going to own the land, but check any and all fees that you'd be required to pay. 3) The mh itself depreciates in value - even more so than the regular housing these days... I did some simple maintenance work for the lady and I was not impressed with the mechanical systems of that particular mobile home.

You're going to have to figure out if you can be better off financially by purchasing and financing this place rather then by renting it - depending on your long term goals it might even make sense to rent if you can save money each month and have the financial discipline to put some money away each month to reach your goals.

Sounds like the land is an attractive attribute in this deal - do your homework and see what it's worth according to your County Assessor's public records. Market value may be a notch above the county assessor's value - compare, if you know a realtor in the are ask for COMPS in the are. Check taxes, check everything but most of all check with your local bank and get a good faith estimate on the loan that you could get.

Best of luck -
James

[toomany MBZ]

I'll agree with those that mention trailers will depreciate. So the land is what you're after. There won't be any lot rent fees, as you're buying the whole package.
Check the local zoning for anything you can't live with.

[Dee8go]

Typically, the land is what you're buying. What's on it is referred to as "Improvements" on your tax bill and other documents. Improvements are many times a minor per centage of the assessed value.

Once you have a piece of land paid for, you can always build a house on it to suit your needs and budget. I'd always prefer owning anything to renting something.

[lutzTD]

A nice peice of land is worth it but keep in mind, if you plan to build your dream house there you may still be surrounded by mobile homes, which will definitely effect the value of the house you build. If you plan to die there, then it makes no difference at all. you goal is never to be the most expensive house on the street,always try to let others expensive houses raise the value of your cheap house.

[Hatterasguy]

Now you need to do some homework to figure out what the lot is worth. If similer lots are going for $75k up the street than its worth $75k. If you can get two houses on it, it might be worth $150k depending on the site work.

What are they asking for it?

[powerpig]

Originally Posted by TMAllison

Value the deal based upon the value of the land only, unless the lot is part of a mobile home park.

This is the best advice. You can live in it an build a home on the lot when you can afford it. Sell the mobile home when you're done.