where to start

[Julia]

My husband and I are looking to buy our 1st MH. We live in Minnesota and are looking to move to the Farmington area. We have newly re-established credit so we're looking for an already lived in home that is in a park. Being that this will probably be an older home would it be better for us to buy through a realtor or from a private party? What things do we need to be aware of and looking for when we buy an older home? Does anyone have suggestions for good realtors in this area, if that's the best way to go?

[Ron]

Suggest you buy Randy Eaton's book available on this forum and/or visit the following site for additional info. www.ncmhi.com/bg_001.htm

[Randy Eaton]

Hello Julia,

Currently there are over 100 different manufacturers in the U.S. offering their products on over 7,500 retail centers nationally. This web site lists all manufacturers at, http://www.hud.gov/fha/sfh/mhs/mfrlst.html. Word of mouth is by far the best way to find a quality retailer. Look for retailers that have been in business for many years. If you’re considering a certain retailer ask for references, (previous customers.) If you are new to the area talk with the locals or visit the local building department, they can provide you with helpful information. Suggestion, family owned and operated retailers usually offer quality service. The local lenders would also be a good source for finding a reputable retailer. Another good source for reputable retailers would be the Better Business Bureau at, http://www.bbb.org/ Take a weekend or two and look at five or six different retailers and talk about service and set-up. Suggestion, purchase only from a retailer that does the installation, (set-up) themselves. Retailers that sub-out the installation and set-up generally have problems. Most people overlook this major detail but an experienced set-up crew makes all the difference. Ask your sales consultant how long their crew or crews have been with the company.

Randy Eaton

[Karl]

I think you would be smart to purchase a home a few years old, if in good condition, as opposed to a new home. I made the mistake of buying a new home, not realizing or thinking about the terrible depreciation that occurs with the newer homes. You can, from larger banks (National City is one) get a ten-year loan on a 95 or 96 home at about 11% interest and you will pay off the home in ten years with a monthly payment of about $370. Buy a new home for $40,000 and you'll be paying for 30 years so if you try to sell it in, say, five years, you will be surprised at how much you owe and how little the home is worth. I like mobile homes, generally, but until the industry finds a way to deal with the depreciation factor, they have a disadvantage that stick-built and modular homes don't have. Buying a new mobile home is a lot like buying a new car. Expect your home to be worth less the minute it leaves the lot--that's why I recommend a used home, so long as it is in good condition.

[Fred]

Karl, I've looked at a couple of repo places and they offer 30-year loans on used houses, therefore I find it hard to believe that a bank is going to finance a house if they depreciate that much. I may be wrong, but I'd be interested to hear what Randy Eaton says about this. Here's the kind of situation I'm thinking about: I buy a 2-year-old home from a repo dealer for $38,000 and put it on my own land - let's say the land is 2 acres worth $12,000. Okay, now I've got a $50,000 investment. Ten years down the road, I decide to sell the whole package (house and land). I know darn well I can get more than $50,000 for it. I realize that the land - which is always appreciating - may be the difference in the equation here, but the same can be said for a site-built home. If you move a site-built home (and this can be done), that house on the mover's truck is worth nothing - I don't care if it's brick and solidly built - it's worth almost nothing when you take it off the land. I know of a situation here in Kennesaw, Georgia where a 4-bedroom brick ranch was going to be sold and moved off a piece of property to make room for a huge house the new land-owner was building. There were no takers for the house - and it was in excellent shape - so the owners offered to give it to anybody who would have it moved. Still no takers. The upshot of the deal was - the house ended up being demolished. So I believe that the land on which a house sits determines the appreciation factor and a well-maintained house (even a manufactured house) is going to appreciate when placed on privately-owned land. Randy Eaton, am I wrong?

[Randy Eaton]

Hello Fred,

Many people ask me, will my manufactured home appreciate in value like a site-built home? My answer is…yes but you need to do a few things first. Obviously the location is important, a quality neighborhood versus a run down neighborhood. Assuming the location is good, you need to include some features in your manufactured home. I mentioned earlier that the roof pitch was important. I would recommend a 4-12 pitch or steeper, this will give your manufactured home the residential look. Lap siding is not necessary but I feel it also will give your home the residential look. Quality construction is very important with the most insulation possible for your area. Solid wood cabinets and sheet rock through out is also very important.

Placing your home on a concrete foundation is crucial if you want your home to appreciate. Attached garages are a big plus and give your manufactured home the look of a site-built home. (My garage is not attached but it has the same siding and look of my manufactured home) Bottom line is… location, quality construction, concrete foundation and residential appeal. If you have these features in your manufactured home you will be able to sell your home years later and pocket the equity.

I know a used mobile home will not have many of the features I just mentioned above but once again, if you place it on a concrete foundation with landscaping you'll do fine. It's the only way for some people that want a low monthly payment. The land will always appreciate in value and if you keep the home in good shape and looking good you'll be able to sell it for a profit later.

Randy Eaton

[Richard Wilde]

The #1 item to look for is PLYWOOD Sub-flooring and NOT particle board which crumbles if ever exposed to moisture. Then look for a manufacturer with a 5 year warranty......