Do they depreciate ???

[Tanya]

Do mobile homes converted to real property depreciate? Just as we get all excited and confident about buying a new mobile home/land pkge, we go to a realtor to talk about land in the area, and they tell us that the new homes will depreciate, we're better off getting the existing man. homes on land. Are they just trying to get more commission from selling us home and land vs. just land? We've looked at some of the current MLS listings of existing MH's on land, and to our best estimate, they are selling for more than they probably cost to put in. This may only be because the land has gone up, but I don't think so.
Thanks,
Tanya

[rmurray]

Remember...future value is dependent on location...location...location...condition..

You are right about the real estate persons motives...too bad they have to make up stories and lie to make a living ( I thought only manufactured home sales persons did this...haha)...

You have done your rerserch...obviously much more than your real estate person...Ask them for proof of that contention..They will not be able to produce it..

I am not so sure I would not be looking for a real estate person who knows more about real estate..

[Tanya]

Thank you for validating my suspicions. This roller-coaster ride of conflicting information is just emotionally exhausting. Yes, I would love to find a realtor who will truly work to get me what I want and need rather than roll their eyes when I mention the dealerships and try to subtly steer me in other directions. I never thought I'd be getting the "car-salesman" routine from a realtor. Aren't they supposed to be on our side? I know this isn't what your site focuses on, but any tips to working with realtors?
Thanks,
Tanya

[Tom]

As a former Real Estate Salesperson, previously licensed in two states, I can understand your frustration. There are a couple of things which might be helpful.(1.) Most state Real Estate Commissions have now established Seller and Buyer agents guidelines. So if you are looking for property, interview some realtors about their representing you as a "buyer's agent." Typically, they like you to sign an "exclusive" contract with them for some period of time. This is not necessary, but there is nothing wrong with their asking you for it. Normally, the listing (seller's) agent will receive the commission and split with the buyer's agent, so you should not have extra cost.

Remember, when you deal with the agent who is showing you the listing or is the listing agent, they represent the sellers interest, not yours. (This is why a buyer's agent is beneficial, because they represent your interest.)

The second thing is to basically deal with several agents over time. Look for those agents who return phone calls promptly, are easy to reach (have pager, cell phone, voice mail, etc.) Unfortunately, you will have to go thru several to find one you want to work with.

[Tanya]

Thank you so much for your feedback. I'd heard about "sellers vs buyers" agents but I wasn't confident enough in my information to ask about that. I thought that an agent was either a seller's or buyer's agent, but it sounds like you're saying that any realtor can be either depending on their relationship with the customer?

[Tom]

You are right in your understanding of buyer and seller agents. Most realtors will have you sign, at some point in your relationship, a paper stating they are representing the seller or the buyer. Make sure your's says they represent the buyer. (you)

Both seller and buyer agents have a "fiduciary" responsibility to their client. This means they should not share proprietary info, between themselves and their client, with potential buyers (in the case of a seller's agent) or with seller's, in the case of buyer's agent. This info can include how long the listing has been on the market, offer's received and dollar amounts, sellers reason for selling (other than problems with the property, which should be disclosed to the buyer.),etc.

[rmurray]

Lots of good advice here....There are even some flat fee buyers agents in some states...

Unfortunately...many agents do not want to bother with bare land sales...the selling price is low and commissions are low...in their defense...It takes as much work to sell a lot...as a high priced home...

Good Luck

[Tanya]

I wonder if that's why the land listings I come across are so useless: no pictures, hardly any description, often no specific location. While the home listings are obviously a lot more detailed!
It sounds like it would be better to go to a realtor and say that you're only interested in land, period, and see how they react.
So an opening statement might be something like "I'm looking for a realtor to represent me as a buyer's agent for a land purchase?"

[rmurray]

Try it...also..I would suggest a small local real estate person..as opposed to the large national franchises..

[Peter]

I enjoyed reading this thread. I've been looking at established homes in the area (Eastern Washington and Norther Idaho) and have encountered several homes on 10 acres where the asking price is higher than conventional thinking would suggest... if a manufactured home ALWAYS depreciates. Obviously, the owners and agents don't think these homes depreciated! The price increase is way beyond what it would cost to buy the same amount of land and put in all the utilities and features I've been seeing.

I take that as a good sign for my plans to buy a new double-wide. I think its like anything... even a site built home can depreciate if its in a poor location or neglected so badly its put into the "fixer-upper" category.

Thanks!