Re-Selling
Manufactured Homes
The Challanges and Solutions
Need Help Financing or Selling Your Manufactured Home? We’ve Got You Covered!
If you’re a real estate agents struggling to find financing for your manufactured home listing or a private seller trying to sell a home that’s been moved Discount Manufactured Homes can help. Through our partnership with Capital Home Mortgage, we offer chattel financing for homes that have been relocated.
If you’re a private seller having trouble finding buyers because of financing concerns, don’t worry! Discount Manufactured Homes can take your home on trade, then sell it to your buyer while ensuring all the expertise needed to meet lender requirements for moving and setting up the home.
Call us today at (800) 850-4255 to speak with one of our sales managers and learn how we can assist you in securing financing or completing the sale of your manufactured home!
The Pitfalls of Reselling a Manufactured Home Once Moved.....
1. Financing Difficulties
- Lender Restrictions: Many lenders are hesitant or unwilling to finance manufactured homes that have been moved from their original location. Some loan programs, such as FHA or VA loans, may disqualify homes that have been relocated, which can reduce the pool of eligible buyers.
- Increased Interest Rates: If financing is available, it may come with higher interest rates or less favorable terms. Lenders view moved homes as a higher risk due to potential structural issues or installation concerns.
2. Perception of Reduced Structural Integrity
- Damage During Transport: Moving a manufactured home, even when done professionally, can cause wear and tear, structural damage, or misalignment of the home. Potential buyers may be wary of purchasing a home that could have suffered damage in transit, even if repairs were made afterward.
- Lower Buyer Confidence: The perception that a moved home may be less stable or more prone to future issues can deter buyers, affecting resale value and making it harder to sell.
3. Local Zoning and Regulations
- Zoning Laws: Some areas have specific zoning regulations regarding where manufactured homes can be placed. If the home has been moved, it may not meet the new location’s zoning or code requirements, which can complicate resale.
- Building Code Compliance: Manufactured homes are built to HUD standards, but some local municipalities may have additional building codes that the home must meet after being moved. Ensuring compliance with these codes can be costly or time-consuming.
4. Insurance Concerns
- Higher Insurance Premiums: Insurance companies may charge higher premiums or impose stricter conditions on a moved manufactured home. This is due to the perceived increased risk of structural damage from the move, which can be a concern for buyers.
- Limited Coverage: Some insurance policies may limit or exclude coverage for certain types of damage in homes that have been moved, which can further reduce buyer interest.
5. Depreciation Concerns
- Faster Depreciation: Manufactured homes generally depreciate faster than site-built homes, and a move can accelerate this process. Buyers may perceive the home as having less long-term value because it has been relocated, reducing the resale price.
- Perceived as “Used” Twice: A previously moved home can be seen as being “used” twice—once in its original location and again after the move—affecting buyer perceptions of its worth.
6. Appraisal Challenges
- Lower Appraisal Value: A previously moved manufactured home may appraise for less than a home that has never been relocated. This can lead to financing issues if the buyer’s lender requires a certain loan-to-value ratio, making it harder to secure the necessary financing.
- Limited Comparable Sales: Finding comparable sales of other moved manufactured homes can be difficult, which complicates the appraisal process. This could result in lower valuations.
7. Difficulty in Finding Suitable Land
- Land Restrictions: Some buyers may have difficulty finding suitable land to place a previously moved manufactured home. Local governments may have restrictions on where these homes can be placed, making it harder to find a new site.
- Separation from Land Purchase: If the land and the home are not sold together, the buyer will need to secure a separate plot of land, which adds complexity to the sale and may deter some potential buyers.
8. Market Stigma
- Buyer Hesitation: There is a general market stigma around buying a manufactured home that has been moved, due to concerns over structural stability and potential hidden issues. Buyers may be more cautious and negotiate harder for a lower price.
- Limited Buyer Pool: Some buyers may be specifically seeking a never-moved manufactured home for peace of mind, further narrowing the buyer pool.
Contact Discount Manufactured Homes...
If your a real estate agent having problems finding financing for your listing or a private selling trying to sale your existing manufactured home listing, Discount Manufactured Homes can assist by offering chattel financing for homes that have been moved through our Capital Home Mortgage partnership.
If you are a private seller having issues finding buyers because everyone tells you that financing can’t be obtained, Discount Manufactured Homes can help by taking you home in on trade and then selling it to your buyer while providing the expertise that lenders require to move and setup a manufactured home.
Call Today (800) 850-4255 to speak to one of our sales manager.
Why HomeBuyers Choose Discount Manufactured Homes
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