The Value of Manufactured Homes

[Karen]

I have been told that manufactured homes depreciate in value as they get older, especially concerning their resale value. Is this true? Also, are you able to claim the interest on a manufactured home at tax time, like you are on a regular house?

Thanks

[Bill Fry]

They will depreciate in value if they are in a park or on rented land.If they are deeded to the land they are on they will either go or down depending on the value of other similar propertys in the area.Location and the land is then the determining factor in assesing value.You can deduct the interest on thew loan if it is consideded a morgtage by the IRS.In other words did the lendor send you a 1098 at the end of the year for tax purposes?

[rmurray]

The IRS allows interest deductions for primary and secondary homes...where they are built does not matter...as a matter of fact..houseboats...campers and motor homes qualify for the deduction..

All structures that man builds depreciate over time...including stick built homes...Ask an appraiser...on older homes they figure a replacement cost for the home..then DEPRECIATE it for its age...Stick built..brick..block..manufactured..modular..all the same...

Appreciation is a function of real estate..not building.....If your home is on a desirable location your home packaged with the real estate will appreciate...If your location is bad..it will depreciate..No matter how the home is built...

Some how folks tend to think of manufactured homes like a car...they sometimes want to sell them without the land...In this case they do depreciate as any structure does...BUT...return on a resale (without land) on a manufactured home FAR out-paces the return on a stick built home sold the same way...Treat your manufactured home like a home...and it will treat you as a homeowner..Good Luck

[David Oxhandler]

Manufactured Home Book Value Reports   Whats your home worth? Order a book value report, here, on line.   All reports are filed by a Board Certified Manufactured Housing Valuator, based on the information that you submit about your home. A Value Report will be returned to your e-mail within 3 business days.

[marlene]

are you saying if a m.h. is on a lot in a park value goes down more? mine is in park. neighbors in park 9 years older then mine they bought there what i wanted to sell mine for

[Bill Fry]

In almost all cases MH on rented lots in parks lose value quickly.The exception would be some areas in Florida and parts of California.

[hilary]

i can see that putting a mh in a rental lot would loose money, but the land is usually more in value than the mh if bought seperatley and yes location is the answer. when we bought our home they werent able to appraise ours due to the fact that our home and property no one else has. The homes here are much smaller,so it was hard to get a appraisal and also im on 7 ac and a full basement.
people tell me ill have no problems selling, when i want to.

[Michael O'Neil]

I've found that the mobilhome will have a value based on manufacturer, model, size, age & condition of appliances, overall care and maintenance of the home inside and out, and the most diserable and added value asset is location, location, location.
Location has two points...1. The MH community, amenties, care, maintenance and management. 2. The location of the MH Park and location of the home in the park. Age makes a difference at the magic point of pre-1976 and post 1976. A newer home will have a preceived added value but doesn't automatically give it a better market price, that depends on the points listed above. As a real estate professional who specializes in mobilhomes (because I live in a gated 55+ MH community in southern California) it all comes down to supply and demand and location!

[Shawn Vetengle]

Your response that the homes depreciate in a community (land-lease) is absolutely not true! I manage a 4+ star community in Freeland, MI and our homes DO NOT depreciate as you stated. In 2002, we were told by more than one appraisal company that we were able to maintain the value of the homes during the depressed economy simply by maintaining our community in an upscale manor. I take great pride in the fact that my homes do not depreciate and in several situations, have appreciated in value.

[David Oxhandler]

There are three universal factors that determine the value of any structure. If the building is block, framed or factory built Location, Design and Condition will determine what a buyer will pay. Here are a few paragraphs found on the web site of a real-estate seller in Austrailia (petrusma.com.au)

"There is an old adage that says the three most important things a buyer cares about are “location, location, location.” Location is certainly a huge consideration when searching for a home, but design and condition are vitally important too.


When you’re house hunting, note if the home is well built and well maintained. If it is, it will be easier to sell later on, and command a higher price because buyers are most interested in homes that need no repairs.


Look for homes with good floor plans and the design features that appeal most to you and your lifestyle. A bad floor plan or one that is not easily changed will make selling difficult. Homes that are updated or renovated command a higher price and sell faster than homes with dated baths or kitchens. The renovations must be well done or they’ll bring down the value of the home. Kitchens and bathrooms date more quickly than other areas of the home and bring the highest return on investment once renovated.


It’s important, too, to know that a home is not over-capitalised because a home’s value is most affected by the homes around it. Location is a personal choice that takes many factors into consideration - schools, shops, transport and churches are of varying importance to different buyers. For example, a family with children will be more concerned with schools, while a retired couple may be more interested in the proximity of services. Make a list of your priorities before you begin the house hunting process. Properties which are in good condition, situated in a good location, and are well designed will sell quickly."