closing costs?

[Emily]

What are the closing costs or whatever they might be called when you are buying a repo/used manufactured home with cash? We were looking at a single wide and the sales guy said there was some kind of cost (I can't remember what) that was like $400 and then when we actually talked to the manager of the dealership, he didn't mention it. So, next time I try to make an offer, I want to know what costs will be incurred so that I know if the dealer is just trying to make something up. Which I think was happening in this case.

Thanks!

[rmurray]

NONE

Sounds like a few extra dinners for the dealership...Drive a hard bargain...Go for it..

[Jon]

Emily:
As with most things, it depends on where your transaction will take place. Many jurisdictions consider manufactured homes as personalty...meaning the sale transaction more closely resembles the purchase of furniture than that of real property. Therefore, the added costs to bring about the sale may or may not be proper, without knowing the reason for the $400 charge it is difficult to say. Additional charges you might expect to see include sales tax (depending on the jurisdiction), set-up costs, needed repairs, site rent for the first month, repossession fees imposed by the repossessing bank, etc.
Most of the areas where we have worked require the itemization of costs and a written purchase agreement (and even if not required, the better retailers offer it as their standard procedure). If you were not given a written purchase agreement, on that basis alone I would recommend you seriously consider moving on to another retailer. But if you did get a purchase agreement, it should disclose the $400 you mentioned. If so, what is the reason given for the $400?
Jon

[Emily]

I can't remember what the reason was, but I think it was actually "closing costs" like with a house. The house was sitting on a dealer lot but is owned by a bank (SouthTrust or SunTrust). I know there would be sales tax...but we never discussed repairs, and there is no site rent. We would just be buying the home with cash.

Thanks!

[Jon]

Emily:
If the purchase agreement contained a lump sum line-item entitled "closing costs," I agree with you ... something smells. Even traditional closing costs are itemized. You were wise to walk away.
By the way, if you are looking for a pre-purchased home check with your state tax department to learn if sales tax applies to such home. For example, in New York there is no sales tax on pre-owned manufactured homes and the tax on new homes is applied at 70% of the rate.
Best wishes. Jon.

[Babs]

Jon, what do you mean,70% of the rate.

[Amy]

It means that you would figure your local sales tax (in my case 7.5%) on the purchase price and then reduce it by 30%. Therefore you end up paying 70% of the local tax rate. At least that's how it was explained to me.

[Emily]

I walked away, but unfortunately I can't find anything better!! We keep going back to this same one. We went and looked at a home and got jacked around for 2 days straight. I told the guy I wanted a 16 X 80 single wide used or repo. He said he had just what I was looking for. It was a 2000 Alabama (or something like that) that had never been lived in. It was a very nice home and he wanted $16,000 and he said b/c it was new, it had a 1 year manufacturer's warranty. So I waited for my boyfriend to get off work and we went back up there. It turns out the guy made a mistake...and they wanted $21,000 for it!!! BUT a guy that used to work for them just called and said he had a 16 X 80 3BR 2BA that was about an hour away that sounded perfect and said it was clean and the people only lived in it for 3 months. Soooo...the next day we go and look at it. The directions were terrible...it took us 2 hours to get there...it was a 14 X 60 2BR 1BA and it was pretty nasty. If the people only lived in it for 3 months, they must've just come home from work and walked all night. The carpet needed to be replaced among other things (ie dirty undies everywhere). So this company wasted much of our time. They eventually knocked the price off the 2000 home to $18,500 (does not include set up or a/c) and then informed us (on the 2nd day) that the manufacturer had gone out of business 2 years ago so there was no manufacturers warranty. Can you believe this place?!?! If anybody in Georgia can help me out with a nice used or repo 16x80 singlewide...please let me know!!! I'm putting it in Jefferson Co and I even know someone who can move it for me!!!

Thanks for letting me rant!!!

Emily

[augustaga]

We have 5 used 16x80's in stock...All fully reconditioned..Prices very with the age..

Call 888-706-0811 and ask for Bob or go to www.melvinwilliams.com for info on our company...

[Dan F]

Hi Amy,
In CA you are taxed based on 1 of 2 things. Either the total sale in which you use your local tax x 60% of the sale price. The other is the better I feel and that is your local tax rate x 75% of the dealers invoice or wholsale price. This is better because you are not taxed on commissions or markups. I got this info from the dept. of housing in Sacramento.