Posted by JohnTN on May 31, 2005 at 21:30:43:
Chris,
Mobile home valuations tend to be very local. NADA does provide a pricing guide for mobile homes just as they do for motor vehicles. This guide may be useful when you are trying to defend your asking price, but using NADA values when buying a home will cause you to pay way too much.
In my area, 26K for a home similar to what you describe is mid to high retail. I wouldn’t be interested unless I could buy it for 12K or thereabouts.
You might want to go to www.mhvillage.com and search for homes for sale in your area. The prices you will see will be high retail. If you can find some homes in your area for sale, you might begin to get some idea of your market. The only REAL way to learn your market is to get out and beat the street. Look in your local papers, talk to park managers and dealers. Drive through the park where this home is located. This time of year, folks are always out walking in the evening. Stop and strike up a conversation and ask them if they know of any homes for sale or that have sold and for how much.
A relatively safe way to get an education, and a good idea of your market would be to try and tie this home up with an option for $100 or so, and then run some test ads in your local papers and see what kind of response you get.
Best of luck with this, Chris. Whatever you do, make sure you limit your downside.
John
Please help…1st deal…seller wants out - Posted by CHRIS
Posted by CHRIS on May 31, 2005 at 16:48:19:
2001 dw mansion new horizon…in park
balance on mtg 44k
will sell for 26k
mtg payment now 400
taxes 80/mo
lot rent 210/mo
seller is bringing difference in cash balance to closing
has been listed since oct 2004 through agent, listing expires in october and will owe agent 2500 if it sells
My idea was to have client pay down own mortgage then do a lease option with me for the balance. I was going to take 5k down payment and sell for 31k.
I do not do a lot with manufactured props. I don’t know where to get the value on this. I also would like to walk away with cash from seller but can’t find a way to structure for it to make sense to them.
I expect new mtg payment to be 235 if taking 26k purch - 44k balance. tax value is 44k
Please give suggestions.
Re: Please help…1st deal…seller wants out - Posted by JohnTN
Posted by JohnTN on May 31, 2005 at 17:57:26:
Chris,
You should educate yourself before you proceed. You are approaching this as a real estate transaction. Mobile homes in parks are more like used cars than real estate.
You indicate in your post that you don’t know how to value this mobile home. How can you determine what you can pay if you don’t know its value?
All the sub/to lease/option backflips that real estate investors love are recipes for disaster when applied to mobile homes.
Best of luck, and do be careful with this.
John
Re: Please help…1st deal…seller wants out - Posted by chris
Posted by chris on May 31, 2005 at 19:52:53:
I agree john, I wanted to know how to go after the value of the property. I admit this is completely new to me. I was hoping if value is anywhere near 40k, to obtain property at 60% value is good deal right? Can anyone advise whether or not to proceed or a website to find values on used dws?
Re: Please help…1st deal…seller wants out - Posted by JT
Posted by JT on May 31, 2005 at 20:44:51:
Chris, I think John is pointing you in the right direction. MHs in parks are very market driven, there are books out that claim to give accurate values but I have found the prices are way to high(for my area). 60% value? If we knew the value we would be one step ahead. Not a jab I promise. I wish I could tell you this was a good deal but without market knowledge I don’t think anyone could. You might try doing some comps in the park/area and pay %40 of that. I am not trying to discourage you… Might be a steal!!! Good Luck!!
Re: Please help…1st deal…seller wants out - Posted by chris
Posted by chris on May 31, 2005 at 21:07:59:
No I appreciate the constructive criticism from both of you. It is just that i am used to looking up comps for stick built houses, I was expecting a nada type of book for mobile homes. I should have just sought out comps as usual. My mistake. I will look into the comps on this. thanks to both again.
Re: Please help…1st deal…seller wants out - Posted by JohnP
Posted by JohnP on June 03, 2005 at 06:17:24:
Hi Chris, JohnTN advice is good. I would run some test ads and see what people will pay. Also look for other homes in the park and see what they are asking for them. Another questions is how desirable is the park. Do people want to live in this park versus other parks. That well help you sell quicker. But the best way, in my opinion, is to ask the park manager what they think the home would sell for? I hope this helps.
JohnP