- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
Analyzing some MH sales. One sale is a new unit placed on a small lot in a small town. I got the maker and model from the website of the Manufacturer. AI says the base cost is $80k. The lot sold for less than $40k. The engineered foundation is concrete, there were $3,000 in concessions, small entry stoop, hook up to water and sewer is <5k. And yet we question why the buyer wouldn't simply put this all together themselves (lots of lots available and some in that town much cheaper.) As I suspect the sellers pocketed about $30K...maybe a little more. That's pretty easy "builder" as they need no more than a phone and a few bucks to 'construct' this home.
Well, I suppose it could be anxious to have a home, or elderly and don't want to fool with it. But it was on the market about 80 days. And the only thing I really think is motivating these sales is that the price is a good $100,000 less than what a stick-built home there would cost.
But OTOH, if we have a serious downturn, I think these properties will see huge drops in prices. So, it is not risk free for a buyer. They can only hope they can cash out and not lose their jobs...which usually accompanies a drop in home prices. To me, manufactured home prices are another indication that prices are simply too high for all residential properties. These same homes were bringing $50,000 or more, less just 6 years ago. I mean as one agent told me, "Where can we find anything for less than $200,000?"
Well, I suppose it could be anxious to have a home, or elderly and don't want to fool with it. But it was on the market about 80 days. And the only thing I really think is motivating these sales is that the price is a good $100,000 less than what a stick-built home there would cost.
But OTOH, if we have a serious downturn, I think these properties will see huge drops in prices. So, it is not risk free for a buyer. They can only hope they can cash out and not lose their jobs...which usually accompanies a drop in home prices. To me, manufactured home prices are another indication that prices are simply too high for all residential properties. These same homes were bringing $50,000 or more, less just 6 years ago. I mean as one agent told me, "Where can we find anything for less than $200,000?"