Depreciation or Appreciation in value
The Home Only
The short answer is yes, but please read further as it’s not as bad as it seems!
Anyone who tells you a manufactured home, by itself, will not drop in value is not speaking the truth. The simplest and most relatable example is to think along the lines of a new car. New cars drop in value as you drive them off the lot right? You buy a new car, because it’s new, financing options are better, it has a warranty, you get to select what you want, etc. Same with a manufactured home….new manufactured homes offer some amazing benefits when looking and selecting affordable housing options.
We’ve previously mentioned the NADA system which creates a value for used manufactured homes (once you move in, the home technically becomes used). Generally, as the years go by, the home loses base value. While base value will always slowly drop, the older the home becomes, the condition of your home can help keep that value you up. For example, a home entered into the NADA system as poor condition will be dramatically different / lower than one entered in as excellent.
A Home on Private Land
While the home itself will lose value as stated above, the land it’s on will appreciate in value, which helps offset the reduction in home value. Last time we checked, land is not getting any cheaper! When selling your manufactured home with land, you will be able to keep the value of your home up, especially with appraisals.
Supply & Demand
At no other time, in my time in this industry, have I seen used homes sell for so much money. The REPO market is nothing like in years past because lenders are making smarter lending decisions. Without a large pool of cheap used repos, people looking to purchase used homes are having to pay more for them. Retailers who buy used homes are also having to pay more for them.
Not only do you have a low supply of used homes on the market today, you have the accelerated costs of new manufactured homes. This industry, much like others, have had huge price increases and some inflation, especially over the last 3 years. As the new homes increase in cost, this pushes more buyers into the used home market, which then increases demand. Increased demand and low supply, means your used manufactured home is worth more money!
Summary
At the end of the day, your home WILL ALWAYS have some value to it, especially if you take care of it, do your home maintenance and keep it fresh with the times with those honey do projects!
Manufactured homes are the answer to affordable housing needs! It’s crazy to us, that some people are still paying thousands of dollars on rent, when they can own a manufactured home and become a home owner. Yes, some people must rent while repairing credit, acquiring better jobs or learning skills….but we are AFFORDABLE housing…..buying a new or used manufactured home is a good choice!
As always, we hope this information helps you and your family!