Why don't they appreciate??

[Linda O.]

I purchased a Skyline last year that I love. I'm in an area where real estate prices make it impossible for 2/3 of the population to even purchase a foundation home.

What I can't understand is if manufactured homes last 60 years, WHY do they not appreciate in value?? Why are they so hard to sell after a few years? It doesn't make any sense. If you own the property, it appreciates but if not, it depreciates. Isn't there a huge population of retired people who can pay cash for a manufactured home and reduce their expenses to practically nothing? I'm seeing several nice manufactured homes in my park, either new or a few years old, on the real estate market for sometimes a year or more. Can anyone explain this? Does it look like I will take a considerable loss if I try to sell my 2001 when I retire in 10 years?

Thanks,

Linda

[rmurray]

Actually...appreciation..depreciation...are all market driven..

There are homes in many desirable parks that DO appreciate over time...Look through these posts here about the most extreme examples in CA,,,early 70's models selling for huge prices..

Unfortunately in many areas there is a glut of used manufactured homes..more than there is buyers...most of this was caused by finance companies buying credit too easily..without careful control of down payment resources...At the same time..new home sales have been tough and manufacturers have held the line on price increases (price increases of new homes help you..) for the last few years...

The good thing for you is that this situation will be over someday..and normal market conditions will return...Over the long haul you should do ok...Your resale will only depend on local market conditions and the desirability of the location you are in..

Since you have 10 years till resale time..One of the best thing you could do is start a homeowners association...work with the management of your park to make it the most desired location in the area..If everyone works for this in the long run..all will do very well..

[Linda O.]

I appreciate your input. Certainly makes sense. Now if I could just get the park to get rid of the Jerry Springer candidates I have for neighbors on one side, maybe I'll see some appreciation in the future.

Thanks for replying.

Linda

[jason]

What, know way that home will appreciate in a park.Why would someone buy a 10 year old trailor for more than what they could get a brand new one for ,in less than a month.If it was on its own land and you where selling both then maybe.

[rmurray]

Jason...there are many parks where homes hold their value just fine...expecially in CA where this lady is located...

There was a famous example last year...Winnona (sp?) Ryder ..the actress bought one for $600,000 in a park in CA...this was a used home that would not have sold for $40K in my area...Value is all in location..

[debbie]

The reason for not appreciating is the fact that most of these homes are located in a park. Blame the banks all you want, but the fact that rents can and are being raised so high for the piece of dirt that homeowners can no longer afford both. Without controls on rent by each and every state, it is only going to get worse. Park owners do not have to justify the rent to anyone. Services are being cut and other essentials such as water and sewer are being charged as extras to the homeowner. There is very little that anyone can do to force a park owner to bring the property value up. All they want is to make a killing and move on. Also, try finding a bank that will loan money for a home that is 10-15 years old. The banks do not want to have to pay the rent on the lot after a forclosure. People don't leave because they hate their homes, they leave because of the park owner. Also, your home is a "motor vehicle"!

[mac]

Jason... you'd best learn to spell if you expect to get into law school. You will be required to write documents in your own hand, in class. There will be no spellchecker available to you.

[jason]

Im not in law school, im a general contractor.And i spell just fine.