MH on land appreciation

[Sylvia]

My husband and I bought a modular/mobile home in a town on a regular city lot about thirteen months ago. Since that time we've treated it as a regular home and put all new windows and doors (regular ones from Lowes) insulated and sided it, replaced almost all plumbing and some electrical. We've textured and painted all walls and ceilings, redone the kitchen, added a garage (not attached), added two decks, put in new appliances, a new hot water heater, a water softner, all new and updated lighting fixtures.
I'll stop, there's more (I'm getting tired thinking about it :~) ) Well, the real estate agent finally stopped by to bring us our "housewarming" gift a year later and was astounded at the remarkable transformation. He told my husband that it would have appreciated by double what we paid for it.
Is that actually possible? It's appraised by the county for real estate taxes as land with a mobile home. Nothing we can do to it (including adding a foundation which we plan to do eventually too) supposedly can increase the tax value.
My husband has plans to add an addition to the side with a basement based on what the realtor told him because of the equity.
I'm skeptical that it would really appreciate. Under all the pretense and fluff and designer decorating it's still really only a mobile/modular home (although we usually forget that fact)

Thanks in advance for your opinions,
Sylvia

[jgn]

It sounds like you plan to stay there so appreciation is really nit an issue. It should appreciate in value but probably not at the same rate as a site built (although there are a lot of different opinions on that subject).

[rmurray]

This is no longer the same home you bought..your real estate agent might well be right...buying older homes and making aggressive updates can be a great way to add value..Many buyers do not have the energy..talent or time..

I would well guess she is right...the value is much higher...This old wives tale of automatic depreciation is just that ...a wives tale..

This home as any will be affected mostly by location..but condition is the next varible involved in the resale price..Your improvement have added substancial value..

Enjoy your home...or put a sign up and enjoy your profit..Your choice..

[Sylvia]

We plan to refinance and stay forever after we build an addition (with a basement) The appreciation has to be there to get the addition financed.

[Robert Castle]

There have been several studies done on this subject. Most of them have found that manufacutured and modular homes appreciate the same as a site-built home under certain conditions. These include

The home must be a double-wide, and well taken care of.
The neighborhood must be well maintained also. If your neighbors don't take care of their property, it will hurt your value, just like any other home.

It's not a bit surprising that your appraisal values are going up. Obviously, you've done a lot of work to the home and could sell it for more than you purchased it.

A lot of the conventional wisdom about manufactured home values are old wive's tales, spread by realtors in some areas because they don't want to sell the homes.

[David Oxhandler]

There are 2 factors that determin the resale value of ANY structure regardless of age or where or how it was built.

1- Location

2- Condition

[Sylvia]

We're in a nice town with a great lot. We bought the land and got the place for free basically. A lot cost the same as what we paid for this place. It had been on the market for a very long time. We thought we would make do with it and then build and decided to do things to make it more liveable and kind of overdid it. We're insuring it as a regular home not a MF home through a major insurer.

[Rey]

well said Robert.

[Terry]

Hi! My insurance is through State Farm. Have your home appraised by someone trained in this field. You were very wise to put it on land and not in a park.

[dmeister]

We are looking into buying a modular home and were wondering about appreciation values. Anyone have good sources on where to find such information?