Headache After Headache!

[DD]

Okay,

After 15 months of trying to sell my 1990 Patriot single-wide with no success, I've taken the first steps toward moving the thing to private land in northern Michigan, and either reselling it as real estate, or using it as a vacation home. I thought I was making progress, but of course, obstacles continue to present themselves.

While talking to a realtor in the Cadillac, Michigan area this week about purchasing land, I was informed that most municipalities and townships in that area require any mobiles to have at least a 30-pound "roof load", due to the volume of snow they receive. Of course, this is the first time I've ever heard the term "roof load", so I stopped by my vacant mobile home to check the specs, and sure enough, my house has only a 20-pound roof load, meaning that it would not pass inspection in certain parts of the state, like the area I'm looking at.

The good news is, the particular lot I'm looking at up north is all set up for city water, sewer, electric, phone, etc. I would not have to have a well or septic system dug, which, I'm guessing, would probably save me thousands of dollars. The bad news is, unless my house had a 30-pound roof load, I can't put it there. So what are my options?

1 - Have the house re-roofed, for which I got a quote of $3000-5000, and I don't even know if that would solve the problem.

2 - Have an "external roof" put on the thing, which I'm guessing is some kind of carport-type covering which would protect the house from excessive snofall, and thus pass inspection. I wouldn't even begin to know who to talk to about this. I've never heard of such a thing before today.

3 - Look at land farther south, like the center areas of the lower peninsula (Mount Pleasant, Mecosta, Big Rapids, etc), and hope I don't run into the same restrictions, but take my chances that I may not find a lot which has the amenities of the one I'm looking at. In other words, spending the thousands of dollars to dig the sewer and septic, run electric, have to put in a propane tank, and all that fun stuff.

My main problem is finding answers. There aren't any. It would be nice if I could walk into someone's office and have them tell me everything I have to do, who to contact, and how to get it done, but what I hear most of the time is "Gee...I don't really know how to deal with MOBILE homes".

On a personal note, to anyone who is considering purchasing manufactured housing....DON'T!!! These things are the worst single investment you could ever make! If you're planning on buying one and living in it for the next 30 years, I say go for it, but if you plan on ever selling it, please don't put yourself through the headache I'm in the middle of right now! Unless the house is on private land, it will depreciate in value (especially a single-wide), and even if you do finally sell it, you will end up making so many concessions just to get rid of it that you will ultimately lose on your investment (I know one person who took a $5000 loss just to get out of their mobile home). A total of 5 people have looked at my house since October 2000, and nobody has even come close to making an offer. Now, I'm stuck with the choice of either moving it and trying to resell it (headache #1), or letting it sit vacant in a community and hoping and praying that the market MIGHT reverse course in 3 or 4 years, and someone just MIGHT eventually want to take it off my hands (headache #2).

There! I feel better!

[Ron Ambler]

You have really found yourself in a tight situation with your Mobile Home. Just my
opinion, but I would forget option 1 (roof over $3000-$5000 option). Unless major
structural changes to the rafters, ridgeboard, etc. were included in those estimates, this option would not likely solve the snow load problem.

Options 2 may provide the best solution for you, depending on location of property in Michigan, zoning issues with respect to Mobile Homes, and the general real estate market for resale in the area.

Building one of these “car port” type structures over the Mobile Home does not require any Mobile Home experience on the part of contractors. If they can build a garage, pole barn, timberframe home, or car port, they should be able to build this for you. Keep trying contractors in the area for estimates. Also, don't forget to add in the cost of transporting your home from existing location to new location.

Option 3 would be worth a look. But, as you say, there may be other cost issues with well, septic, etc. Also, need to check snow load and zoning requirements in the area, as well. The city or county building, zoning, or land development agencies can provide you with the information you need about the area.

You never mentioned trying to rent the home or attempting to sell with Owner Financing. (Neither of which your landlord may approve, or maybe you need the cash for a down payment on another home.) Have you considered these ideas? Are they even appropriate?

These are just some thoughts and not intended as legal or financial solutions. As you have already found out, the basic decision is yours.

[Sandy Y]

I agree that it would be foolish to put any more money into the home in order to sell it. If it's possible to rent it out, that might be a great option, especially if the house is paid for. What are your options if none of the above(s) work out? Would it be possible to trade it in on a new home which you could then put on the land you're looking at? True, you may not get much, but that option would allow you to get on with your life.

I also want to say that what most people don't realize is -- a site-built home taken off the land it sits on (i.e., a highway coming through, or whatever) is also not worth anything either. The land beneath it is what is appreciating, not the house itself. I've seen brick houses jacked up and sitting on land just waiting for a buyer to come move them and they'll sit there for MONTHS with no buyers in sight.

Hope this is helpful ! Good luck !

[Jon]

DD:
All of the comments you've received from others are good ones.
I want to comment on your statement about depreciation. Although you've evidently encountered a disheartening experience, all manufactured homes do not automatically depreciate---just as all site-built homes don't automatically appreciate. Indeed, in our market area is it common for older homes to appreciate and previously owned homes sell almost as quickly as they hit the market.
Appreciation/depreciation factors involved include, but are not limited to: The home's age, size, condition and acessories; the neighborhood in which the home is situated; the age, average site size, average home age, average home condition, appearance, monthly rent and number of vacant sites in the community in which your home is located; your local real estate market; and your local economy. I'm saddened to learn these factors apparently are not working to your benefit at this time. Seems you are trying to sell in a "down" market. But this is not necessarily the fault of the manufactured home. At times even site-built homes face similar market difficulties.
I realize this doesn't really help you with your current problem, but I hope my observations will help keep your predicament in perspective.
Good luck! Jon.

[Dan O'Flaherty]

As far as the roof load goes, it is a federal requirement, not up to the local town. If you look at the data plate of your home it will show you the line in your state between the "Southern" or 20 lbs roof zone and the "Middle" or 30lbs zone.
It would be a large cost and many local inspectors might not be comfortable with "approving" a manufactured home with an on site roof improvement.

I would agree that renting the home, where it is now might be the best idea.

The problem at it's core would seem to be that when the home was first sold, the salesperson was more interested in moving product rather than giving the proper information on the home.

Living in your state, where snow load is an issue everywhere, not just some line drawn on a map, you should have been given the choice of a 20 or 30 or 40 pound roof. Or at the very least shown the roof load figures.

It is sad to say that many of the problems that are expressed in this, and other forums start because salespeople are poorly trained and just don't know.

[DD]

Thanks to everyone for the input, and for listening to my rant. It's been a stressful week, and I think I'm in for a stressful year. A little background...

I bought the home used in 1997. A lot of it is my fault - I was uninformed about mobile homes (should've seen the look on my face the first time I encountered a Robertson screw), and should have done a lot more homework at the time. Then again, at the time, I planned to live in the thing for 15-20 years....just me, a single guy, and my 2 cats, and I just thought I would learn as I went along. If I had planned on selling it so soon, I probably would have opted for an apartment or townhouse.

Two years ago, I met a wonderful lady to whom I'm now engaged. We decided to put both of our houses up for sale and buy an older, two-story home together (she has her current house on the market as well). My single-wide mobile, while very nice for a single person or couple, would probably be a bit small for me, my future wife, her daughter, and our combined 4 cats and 1 dog. In the words of Roy Scheider..."we're gonna need a bigger boat".

The realtor who's helping my fiance sell her house recommended the idea of moving my mobile to private land, possibly using it as a vacation home, and eventually reselling it, since it's clearly not selling in its current location. It's in a very nice park (probably the best-maintained mobile home community in the Lansing area), and it's on a spacious corner lot, but from everything I've heard, the market is just dead right now, and especially so for selling single-wides. Leasing is not an option, since it is against the park rules, and anyone who lives in my house has to pass a credit check and be approved by the park management. I've also considered offering a land contract option, but the way I see it, if a potential buyer has trouble securing financing from a bank or finance company, I don't think I want to take a chance on them either. It could turn into a big mess...much bigger than what I'm dealing with now.

I have to admit that I know absolutely NOTHING about moving a mobile home. I'd just like to hand someone a check and say "unhook it, haul it, and hook it back up", but I know it's much more complicated than that. I guess that one other option that I have is to pick a location further south than where I've been looking, and if that's what it comes down to, so be it. I could also leave it put, wait until spring, and see if the market improves. However, if I do that, and it doesn't sell over the summer, then I'm stuck paying lot rent and a high-interest mobile home loan for yet another year, and I know that I could secure a conventional mortgage and reduce my payment greatly by moving it. Plus, by having it on my own land, I can turn the depreciation into appreciation.

The long and short of it is that this will probably be quite the stressful year for me and my fiance. We have to deal with selling her house, moving my house, buying a new house, and finding the time amidst all of this to plan a wedding. The ride is just beginning!

[Jon]

DD:
Congratulations on your engagement! In an attempt to help you reduce the stress you anticipate, the below suggestion is offered.
If your manufactured home is affected by a "down" market, there is a fair chance the real estate market is also negatively affected. Before you make any commitments (regarding the home), you should perform a relatively simple cost comparison.
Prior to a land purchase you should add together all of the likely costs to be encountered by placing your manufactured home on private property. Then you should contact a reputable realtor who operates in the neighborhood in which your property is located. Ask the realtor what he/she believes a realistic selling price would be for your manufactured home/land package once it is complete. Compare your total cost against the likely selling price mentioned by the realtor. Then compare the realtor's price against highest offer you received to sell your home at its present location.
If you are not pleased with the differences displayed by these comparisons, you just may want to re-think you current plan. You may find it is actually possible to fare better financially and emotionally by selling the home at a loss where it presently sits instead of enduring the risk, stress, time and cost of buying land and moving your home.
You may want to discuss this approach with your accountant, who may have other suggestions that could be more relevant to your area.
Again, the aforegoing is not offered as a "poor" reflection on the manufactured home, but is, rather, a suggestion to possibly reduce your losses in a "down" market.
Best regards.

[DD]

Currently, I've got the house listed for $16,900 at its present location, taking into account that I currently owe $14,000 on my note at 12.9%. The cost of moving it (including refinancing with a conventional mortgage at 8% or lower) and setting it up is estimated at $26,000-$30,000. I've done some market comparisons, and found much older homes than mine (70's models) on private land selling for $50,000-$60,000. I'd be happy to sell mine for $35,000 and make a tiny profit.

The problem with selling it at a loss where it is would be finding the money to cover that loss. I'd love to lower the price, but with a $14,000 note over my head, I don't have much room to move, and I have to leave space to negotiate. To boot, the current loan is non-assumable according to the lender, Associates Housing Finance. It would be a lot easier to find someone to just take over the payments if that were an option.

[LAYLA]

I understand you owe 14,000.00...can you afford the payments on your current loan after you buy your "bigger boat"? If so maybe trading it in for another home is the best option, then place the new(er) home on the property (Make sure it has proper roof-load, etc.) and use as either vacation, rental, or sale it....Just a thought. I don't know how much you origionally paid or how much the home is worth, but rather than deal with the headache of moving your existing home...maybe trading is the way to go.