Putting a value on MH - Posted by andy_pa

Posted by Dan (Michigan) on March 09, 2004 at 08:48:02:

After completing 20+ Lonnie deals I have found that determining selling value is a matter of understanding the average selling price of similar homes in your area, the amount of lot rent, and the average cost to rent a 2 bedroom apartment, and what you expect your yield to be, and finally what your cost is in the home. I also set my selling price, or my down payment and monthly payment amount (which dictates the selling price) based on the time of the month - beginning or end - and when the next lot rent payment is due.

I realize this is alot to factor in determining your selling price. I arrive at my selling price by answering all the questions I mentioned above. Hope this helps. Good luck!

Putting a value on MH - Posted by andy_pa

Posted by andy_pa on March 09, 2004 at 06:45:17:

I’m curious about how to get a fair market value on MH, is it done the same way as with conventional homes?

The reason I ask this is because there are 4 homes in my area all asking less than 4000, I’ll be calling on them today and (if the seller is motivated) figured I could get another 1000 off the price. My intentions then would be to Lease/Option or just flip it and use terms if need be.

I just need to know how to establish a fair sell price to sell it at. I realize condition and location would make a difference but considering decent condition and setting, can I take a 20 year old home, buy it for 2000 and turn around and sell it for 5000 or 6000

Your help would be appreciated,
Thanks, andy

Does this sound reasonable to you? - Posted by Steve-WA

Posted by Steve-WA on March 09, 2004 at 09:32:13:

3 or 4 years @ $200 a month (13%) equates to about 6K to 7.5K, and that’s after downpayment.

Most - I daresay all - people who call as a buyer respond very positively to a 3 or 4 year payoff.

So total sales price, assuming 500-1K down, seems reasonable at anywhere between 6500 and 8500.

And that’s on the low end of reasonable.

IMHO

PS and I like Dan’s comparison to time of the month!