How to comp a MH surrounded by SFH

Question

I am looking to purchase a MH in a MHP that is tucked in a very large SFH development. I have not found other MH for sale in the area to comp with. I have found a park 20 miles away with homes that are 15-20 years newer, as well as MH 35-40+ miles away on land. How do I put a value on the home to make a fair offer? Thank you

Bill Tyler · Answer

I am actually looking at doing my first mobile home deal. I used NADA to get a general idea. http://www.nadaguides.com/Manufactured-Homes/There is several things to keep in mind though. The one I am looking at is a 1996 Redman 14x56. It was a basic model with low end quality components. The website only factors in up to 5+ years on the items, not that the HVAC is 21 years old and probably won't make it through the year. The same thing with roofing, etc. If you choose the professional report ($50) it will be much more detailed, give you wholesale estimates, etc.

Carrie Cavins · Answer

@Rachel H. I emailed my first offer! I feel good about my analysis, my offer, and my letter! I think I'm more excited that I took that first step to making a path. I used SO much advice from people that responded to my questions that I should of been singing in my head "We are Family.."!!It will be a few days for any update!!!!!

John Arendsen · Answer

That could get a little tricky if there are no comps near by. In Cali appraisers have no choice but to defer back to older comps no matter how far they go back or how far they have to navigate away from the area.BTW, FYI, This is also a very pervasive challenge for folks who want to purchase a HUD MH on a private lot or parcel surrounded by other SFR's in the immediate area. EXAMPLE: You're trying to get comps on your HUD MH in and around the SFR's the home is located in that are worth 250k, However, because it's a HUD MH the appraiser has no choice but to refer to the nearest HUD MH in the area which is can be the closest HUD MHP where the values are less than 100k. It doesn't take a rocket scientist to figure this one out.

Rachel H. · Answer

If you can't find a park nearby, you may want to check with the local mobile home dealerships. Usually, I find them a great source of information. They may be able to help with values in the area as well as what people are willing to pay (i.e. cash, rental, payments, etc) for the mobile home depending on its criteria. Hope that helps!

Bill Tyler · Answer

I'm still crunching numbers - but will probably live in it for a while since the housing costs here have become so outrageous!

Carrie Cavins · Answer

Bill Tyler thank you! I'm in Fort Worth and would like to keep in contact. What are your plans with the purchase?

Rachel H. · Answer

Good to hear @Carrie Cavins! As for the comps, it's usually local versus getting them online. Most parks and mobile home dealerships in the area (as well as the local residents) will usually have a good idea of what homes sell and rent for in the community. Regarding looking at your first property, I suggest just going in as if you were going to live there yourself. Ask questions as a homeowner versus an investor. This will allow the questions and conversations to come out naturally. Unfortunately, many investors do the opposite and sometimes come off as too distant. As you get to know the seller and build the relationship, they'll get to know you and what you do. The trick is building trust first by getting to know them and then working in what you do into the conversation down the road. To be honest, building relationships is more of an art than an exact science. It takes practice and many years of experience to perfect the process. The key is finding your style and making it work with your personality. Hope this helps. Best of luck to you!

Carrie Cavins · Answer

Thank you Rachel H. and John Arendsen for the input. I like the idea of contacting the local dealers. I did talk to the park office and found they own about 1/3 of the homes and was able to get average rent prices. I was not able to get prices on average home prices but will call them back. Besides getting comps, is it worth the $26 to look at the value online? I forget the website at this moment but it's like Kelly blue book. Also, I'm going to look at the property today (my very FIRST one!!) Any suggestions of what to ask and seem none threatening? It's not a distressed property, excellent location and 8+ school rating, owner doesn't want to rent after current family members move out. Thank you!