How can I manage to sell and build?

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Time2build
Posts: 1
Joined: Thu Apr 03, 2008 5:20 pm

How can I manage to sell and build?

Post by Time2build » Thu Apr 03, 2008 5:27 pm

I have a 2004 32' x 54' doublewide. At the time I was just getting out of the Navy, my Wife was pregnant, and I wasn't for sure what my income would be, so we made the decision to order a doublewide as an instant fix. My mistake here... I put the thing on land I own that was my Great-Grandmother's farm. I CANNOT lose the land obviously, but want to sell the home. I bring in right at $78,000 a year and we don't have a ton of debt, maybe $5,000 in credit cards and we owe $350 a month on her car for three more years, but that's it aside from monthly utilities and things of that nature. Problem is, when we did this, we financed the whole nine, septic, a large brick porch and brick foundation. We owe $69,000 on it right now. We're wanting to build soon, is it possible to get out of this thing and only lose $20,000 or less on it? I figure I can safely afford $150,000, so I have budgeted about $125-130 on a new construction, factoring in $20K loss on this one. Am I living a pipe dream to think this is possible? We live in a rural area 20 miles from Bowling Green Ky. Thanks in advance for the help!

rmurray
Posts: 1086
Joined: Thu May 25, 2006 6:49 pm

Re: How can I manage to sell and build?

Post by rmurray » Thu Apr 03, 2008 8:39 pm

Like any other type of house...Selling the house with out the land is an expensive project...Just remember your buyer will have to have $8000 to $10,000 cash to move and reset the house...This in itself limits your market a lot...Few used home buyers will have that much extra cash..Of course you understand the septic, porch and underpinning are completely lost money...It is hard to say what your local market will bear for pricing...Since the most important part of value (location) is out of the equation, you have a very large hill to climb..Even then it may well take a very long time to find any buyer at all...You might consider moving the home to some desirable location and then sell the package. You will still lose all of the permanent real estate improvements..but you would have a much easier time finding a buyer and recoup the largest amount of money possible.

Good Luck

AZRealtor
Posts: 26
Joined: Fri Jul 18, 2008 9:24 pm

Re: How can I manage to sell and build?

Post by AZRealtor » Sat Jul 19, 2008 11:43 am

Being a 2004, 32' wide, there is still value in the home. Many finance companies will provide financing to include the moving & set-up. Keep in mind,when you originally made the decision, you wanted to satisfy an immediate need....you did. Another thing to consider...You say you put it on land....a farm. Is it possible to do a minor land division to leave the home as a separate piece of property on a parcel that is independent of your home site? If so, you open up a lot more options.
The Real property can then be sold having much more value. Or you may want to consider rental income? In considering this, keep in mind that you owe 69,000. I hope that the land you are keeping for yourself might be worth at least that much? If so, you may be able to justify a long-term rental income on the property next door after you live in it while building your new site-built home.
Weigh your decisions carefully, they're all hard choices, but figure out which benefits you the most long-term. Check with your lender; can you roll the amount owed into a new construction loan to "pay off the land".

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