Resale Value

[Heather]

I have done a lot of searching on this issue, and havent gotten any real answers. I am torn between getting a really nice Fuqua (1500+sq ft) with upgrade options and putting it on at least .25 acres in a small town in Lane Country OR, (cottage grove pop 8000) I would put it in Eugene, but there are too many blocks on manufactured homes. The other option is buying a site built, and not being able to get exactly what I want. I know the construction is better than site built, and it even looks good, but if the house is going to depreciate or just not appreciate, I feel like I am making a poor decision. Dealers, realtors, and banks all have different opinions. Any experience based thoughts? HELP!

[rmurray]

Choice of housing is a complicated issue...Purchase motivations include cost, family comfort and harmony, investment potential and overall family well being...
If investment potential is the only thing you look at... the only consideration is the crystal ball's answer to what location will be the best in the future...The type of home, family comfort and overall well being becomes very secondary...It is a falicy to believe any type of home appreciates more than another type..Future resale only depends on local market decisions and the precieved desirablity of the location (example..the actress Wynona Rider recently purchased a small 2 bedroom double section in a rental park for over $600,000..this home would have been no more than $50,000 anywhere else)...Market conditions also effect resale...but they effect all homes the same...example would be interest rates...If rates rise a lot over the next years..All homes resale will be effected downward...Other market conditions such as high unemployment, declining ecomomy, rising stock market and deflation would all effect the value of any home..
How you rate the various motivations to buy a home...depend on your expected short and long term plans...Resale means nothing for someone looking to a lifetime home..then only those other motivations mean anything...On the other end of the scale..if you plan on reselling in 6 months...resale will be the only consideration and you will buy in a very currently vigourous market...all other motivations will mean nothing..
To answer your question directly...your manufactured home and land will appreciate or depreciate the same percentage of other homes in the same area...If you can find a guru that can see into the future and predict actual resale value of any market more than a few months in advance...send him myway so I can be rich soon...For most of us..all we can do is hope....but in the mean time comfort, family pride and harmony are things you can effect and be sure of...If the home satisfies your needs and the location is good for you...go for it..

[Heather]

Thanks for getting back to me. Heres the deal, I really like the interiors of the Fuqua houses, and we are definately thinking of them. Unfortunately I dont think we will be able to put the home in Eugene, OR, where we both work and live, land is too scarce and a lot of the realtors we ask if MF can be built say no and we are stupid. This makes me think that land will be valuble in about 5 years when we plan to move. There are nice lots in Cottage Grove, OR, about 30 min south. I dont know much about the growth in that area. (We just moved from outside Boston, MA where MF housing is not huge yet, but 1 or 2 bedroom apt rents are upwards of 1200/mo) Is there anyone who is familar with this area of Oregon that has insight? If I could find a decent lot in Eugene it wouldnt be as big of an issue, but CCRs and city zoning......So right now, is the market good for buyers? Thats what I thought. What did you mean by vigorous market? Im just not familiar with that stuff.

[Mac]

If you're going to move in five years, why not buy an existing house?
Cottage Grove is a retirement and timber town. I wouldn't expect growth beyond more retirees.

[Brian]

I agree with Mac about Cottage Grove. You might be able to find decent prices on land in the outskirts of Springfield. Springfields city limits are continuosly expanding eastword. In 5 to 10 years this land will be valuable. I have found property up the Mckenzie Valley, 1.2 acres.... well, septic and electric in.....45K. That is a great price for the location. I know of other property around there also. The Mohawk Valley also has decent prices if you look around enough. The travel time from these are just the same as Cottage Grove. The Mckenzie Valley is a beautiful place to live..... Good Luck