resale value

[Tina]

Help! We are considering buying a new modular home that will be set in a new modular home community. The home will have a 2 car attached garage and therfore it will be hard to move. The reason I mention move is that we do not intend to stay in such close quarters forever. Also, this needs to be an investment. We have heard conflicting reports as to the resale value of this type of housing. Any input?

[Randy Eaton]

Hello Tina,


The resale value will depend on a number of things. The quality of the community will be a big factor in appreciation. Many retailers today own and operate manufactured home developments. Some are small and modest, others are large and up-scale. There are many advantages to moving into a development. One advantage is stricter covenants that help maintain the residential appeal of the community for many years to come. Other advantages are; clubhouses for community activities, swimming pools, play areas for children and gated perimeters for added security. For those wanting a turnkey situation a development may also be the answer. In most cases your retailer will control all aspects of construction like, site preparations, permits, and landscaping. Also, the retailer will usually do attached garages, decks and fencing. If you’re considering a development your retailer has the upper hand, it may be difficult to negotiate the price down. If this is definitely what you are looking for, I would still shop other retailers that carry the same brand to make sure I wasn’t paying too much.

The other factory for determining resale value is the quality of the manufactured home. Bottom line is quality Mfg. home and quality community you will be able to sell your home for a profit. It may take 5 years before you have a decent amount of equity in your home.

Randy Eaton