appreciation / depreciation

[AARON BIGGS]

My wife and I are looking to purchase either a moduler or manufactured(mobile) home. We're curious as to the long-term appreciation of the mobile-style home. Our intentions are to own the lot, as well as construct a basement/garage underneath an approx. 1700 square foot home. We have heard that the mobile home will actually lose value over the years, which would negate the initian cost savings. If that is the case, we'll just go for the modular version. What is your advice? Thanks!

[Tina]

Although I'm not an expert, what I have learned from this forum is this: If a manufactured home is in a mobile home park, it loses value. If the home becomes "real estate" by making a foundation and putting it on it's own land, then it can increase in value - but primarily this is due to the land (possibly) appreciating - not necessarily the home.

I understand your concerns about the initial lower cost being negated by a lower resale value. We recently purchased 40 acres, and we are definitely going to put a 3,000+ square foot Silvercrest manufactured home on the land. However, this is where we plan to live for the rest of our lives - so for us, resale value is less important than it might be for you. I think you should consider how long you plan to live in the home, and whether the location of the lot seems like it might increase in value over time. It also probably depends on the state you live in.

Hope I helped a little bit!

[rmurray]

Aaron...urban legends are hard to over come....placed like you are going to..a manufactured (mobile) homes will react just like any other home in this area when it is time for resale...If a modular..or stick built will have gained value on this location..a manufactured home will also..

Just think about what you have heard...manufactured will lose value...BUT..the very same home inspected by a different inspector and now a modular will gain value...Does that make sense...NAW..

Go for it..enjoy your new home..