Posted by lyal on March 28, 2001 at 07:20:19:
Karen, The first question that comes to mind is whether this is to live in or to use as an investment? If its to live in the value is what its worth to you. If its an investment, the better question is “What is it worth in your market?” Prices can vary dramatically between areas. You need to learn YOUR market. Talk to dealers, park managers (especially park managers!!), call on paper ads that are a week or two old and if they say its sold ask “I’m trying to get an idea of what I’m going to need to spend. Can I ask how much it sold for??” Many will tell you…a few will hang up or you…so what.
After that if you want a formula (for investment type deals where you sell with financing) you start with the price you can sell for divide by 2 and subtract any repairs and several months holding costs (lot rent, utilities, insurance…). That should give you a ball park figure of the max you want to pay. If the seller won’t consider that, they aren’t motivated and you shouldn’t waste any more of your and their time.
All the best, Lyal