Sometimes it is time to get your money back on an investment or move because of a promotion or many other factors play into the sale of a home. Brick and mortar homes however are sold a little bit differently from manufactured homes. If you are thinking about selling, be sure to check out this article first.
When it comes to selling your manufactured home, there are many avenues you can take. It’s important to know your options. Many times, your timeframe will have a deciding factor on how you sell your home. Here are a few directions you can go to sell your manufactured home.
For the purpose of this article, we will only discuss selling your home only without the land attached. If you’re interested in learning how to sell your manufactured home with the land attached as real property, using an experienced real estate agent in your area who specializes in selling manufactured homes is the best route to take.
Sell for Cash
One of the most appealing ways to sell a used manufactured home is to sell for cash. Though, you will need to verify the buyer purchasing the home has the funds available. If you come to an agreement, be sure to receive a deposit if things fall through. If the buyer needs to get approved by the manufactured home community to live there, you will have to structure it so they can receive their deposit back should they not pass the application process. Should the buyer have plans to move the home out, be sure you talk to park management about the procedure. Many communities require a thirty to sixty day notice if a home is taken out of the park. Bottom line: Work with a buyer who is trustworthy and does what they say.
Sell on Payments
Most homeowners who do not need the money upfront may choose to sell for payments instead of collecting all the cash upfront. When you go this route, you are basically becoming the bank. Be sure to get a substantial down payment from the buyer and make sure all the terms are stated in advance. You’ll need to spell out the payment amount, interest charged (if any) and length of the term. If you are selling in a community, be sure to include a paragraph in the agreement that the home must stay in its current location until it has been paid off. The last thing you want is the home moved somewhere else in the middle of the agreement which is a recipe for disaster. So much can go wrong during a mobile home move. Better to be safe than sorry.
Sell Back to the Manufactured Home Community
Another route you can take is to sell your home back to the manufactured home community. This option makes sense for residents who want to move right away. In general, most communities do not want homes to be removed and would be more than happy to buy your home. The pro is that you get a quick sale with a company you’ve been doing business with: the park. The con is that you may get a low offer. If you have time to sell, you may want to hold off on this route and see what kind of offers you receive using other methods. If you need to sell right away, this is a viable route. Most times, the community will take care of the paperwork, such as the title transfer, should you be in a hurry to sell.
Sell to a Manufactured Home Dealership
Mobile home dealerships are in the business of buying and selling new manufactured homes. Many times, they will take in used homes as trade-ins for credit to buy new homes. If you are looking for a new home, you may consider looking into what your local manufactured home dealership is willing to buy as a trade-in. Sometimes these dealerships may consider purchasing used homes to sell to their list of buyers, many times other homeowners or investors. Just like selling to manufactured home communities, the pro is you get a quick sale. Though, the con may be that their offer may come in lower than expected. Again, you have to weigh the good and the bad. Each scenario will depend on your personal situation.
Sell to an Investor
If you are in a rush to sell your manufactured home, you may consider selling to an investor. Keep in mind investors are there to make a profit just like manufactured home communities and mobile home dealerships. Though, sometimes you can create a win/win situation for both you and the investor. Be sure to work with someone trustworthy and reliable. If they do what they say they are doing, usually it’s a good sign. Be sure to make it clear the home is sold with the understanding the investor gets approved by the community or it is OK with park management to remove the home from the park, if going that route. Otherwise, you cannot go through with the transaction. As in anything else, selling with cash is ideal if you need all the money upfront. If you choose to sell on payments and the home is staying in the park, be careful. You want to make sure the lot rent is taken care of and does not fall back on you.
When it comes to selling your manufactured home, you have many choices available. The key is being able to know what options you have and know what you want going in. The last thing you want is someone to convince you to do something you don’t feel comfortable doing. Be sure the person you decide to sell to can work with you and you feel good working with them. Check with park management on any issues or questions you have when selling to another individual. State everything in writing. As in any business, selling manufactured homes is a people business. Be sure to work with people you know, like and trust.
Rachel Hernandez is the author of Adventures in Mobile Homes: How I Got Started in Mobile Home Investing and How You Can Too! and the Real Estate Investing Sucks series of books. Find her at: www.adventuresinmobilehomes.com.