Calculate the Value of a Used Mobile Home
Calculating the value of a used mobile home can be done using a variety of methods and services. The value of a mobile home is different if it is on a rented lot or an owned lot. Land generally appreciates, so a mobile home on an owned lot will have a higher value. Here's calculate the value of a used mobile home.
Instructions
Calculate the Value Yourself
1. Identify the mobile home for which you want to establish a value. Find out what the current tax valuation is for the home. Most mobile home owners have to pay property tax on these homes, and the county or legal jurisdiction uses an algorithm to base the tax bill based on the home's age and exterior improvements.
2. Evaluate the location. If the mobile home is on leased land, this will be less important than if the home is on its own land. The land is the basis for appreciating value in the home. Even site-built homes on leased land depreciate. If the location is in a great neighborhood and a growing area, its value will be higher than a similar home, whether site-built or site-ready in another location. This is the most fundamental aspect of buying real estate. Generally, the rule is that homes without land depreciate 5 percent a year.
3. Assess the condition of the house. The value of the land and the mobile home will vary, based on improvements to the home, demand for housing in the area, or the reverse, which is the general condition of the home. A used mobile home that needs a lot of essential repairs will be worth less than a similar one that is in top condition. You can get an estimate on how much the repairs will cost and subtract that from the assessed value.
4. Look for properties that are similar in size, condition and location. This will give you an estimate of the value of the used mobile home you are evaluating. Compare the mobile home to the others in the neighborhood, whether they are for sale or the owners have established a value. You can start this search online by using sites that sell used mobile homes in your area. See Resources for links to finding comparable mobile homes that are for sale across the US.
Use a Professional to Calculate the Value
5. Hire an appraiser to give you a professional opinion about the value of the used mobile home. Appraisers have to be licensed in the state in which they work and they have to go through training programs to learn the skills of their trade. Their professional opinion should be fairly accurate.
6. Ask a bank or companies that specialize in mobile home financing for an estimate. The bank will not finance a mobile home that is overpriced. They will probably ask for an appraisal before they fund a loan.
7. Ask someone who sells mobile homes to give you an estimate of what they think the home in question is worth. Like an appraiser, theirs is an educated opinion.
Tips Warnings
Buy a used mobile home that was built after 1977. Since that time, the homes have been required by law to follow HUD standards for safety.
If you are buying a mobile home that is fairly old, make sure you have someone inspect the home's wiring. you may need to replace the electrical outlets with new ones. Beware of mobile homes with aluminum wiring, it can be a fire hazard.
Tags: calculate, value, used, mobile, home, mobile home, home that, mobile home that, mobile homes, used mobile, value used
