If you’re considering a new mobile home, you might be wondering what advantages and disadvantages this type of house has. There are ups and downs associated with all types of homes, and mobile homes are no exception.
To help our readers, we’ve developed a list of the pros and cons of buying a mobile home. If you’re considering a mobile home purchase, make sure to explore the information in this guide before you make any decisions.
Advantages of Mobile Homes
There are many advantages associated with owning a mobile home. Let’s explore some of the top upsides below:
1. Price
One of the key advantages of purchasing a mobile home is affordability. If you’re searching for a new house, you already understand how expensive it can be to buy a new home. Real estate prices all over the country have risen significantly in recent years.
As mobile homes are much cheaper than traditional brick-and-mortar houses, you can get a safe and welcoming place to live and call your own without breaking your budget. While the price of mobile homes will vary depending on manufacturer, age, condition, and other factors, there are plenty of excellent deals available.
2. Flexibility
One of the best parts about buying a mobile home is the flexibility it offers you and your family. As their name suggests, mobile homes are mobile – meaning you can transport them to other mobile home parks or property locations. While moving a mobile home costs money, it still offers much more flexibility than a house with a typical foundation.
Not only does this mean that you’ll have the ability to move your home, but it also means that you can access high-grade locations where you may not be able to afford a standard home. For example, if you enjoy golfing, there are many mobile home parks within a short distance of top courses around the country.
3. Better Property Tax Advantages
Depending on where you live, property taxes can be a significant expenditure. Fortunately, living in a mobile home often doesn’t carry the same property tax implications as a traditional home. This means that you can reduce your property tax exposure and save significant amounts of money each year.
This tax advantage is another aspect that makes a mobile home an overall more affordable housing option for many Americans.
4. Low Maintenance Spending
If you own a traditional home, you already know how much general maintenance can cost. One of the most significant liabilities involved in property ownership is continual maintenance – especially if you own an older home.
There are still maintenance obligations with mobile homes, but they tend to be much lower than with traditional housing. This lower cost is because mobile home parks and other locations where you host your mobile home will take care of a lot of the general maintenance. Fixing water lines, sewer lines, septic tanks, and other components may be covered by the mobile home park.
Also, as mobile homes are typically smaller than traditional houses, it’s easier to fix problems as they arise. Many contractors specialize in providing affordable mobile home repair services.
Disadvantages of Mobile Homes
When you’re considering the pros and cons of buying a mobile home, make sure you’re aware of these potential disadvantages:
1. Property Depreciation
Mobile homes are known to depreciate quickly. It’s essential to understand that mobile homes aren’t typically the same type of investment as brick-and-mortar homes. Most mobile homeowners can expect their home’s property value to shrink, not rise.
This is slightly different for mobile homeowners who own the land under their mobile home since the land may appreciate. Still, mobile homes are an excellent choice if you’re searching for a long-term place to live, rather than an investment.
2. Financing Difficulty
Unlike brick-and-mortar housing, financing can be difficult for manufactured housing. As these homes are “personal property,” they don’t follow the same lending rules as traditional homes. This is because mobile homes are known to depreciate, and therefore banks can use the same lending model they typically utilize in the property industry.
If you want to obtain a loan to purchase a mobile home, you will likely need to pay a much higher interest rate on the amount that you owe. Also, the term of your loan will probably be much shorter than with a typical mortgage. This helps lenders offset the risk of your mobile home’s depreciation.
Regardless, mobile homes can be a much more affordable housing alternative for many Americans, even with these financing constraints.
3. Manufacturing Quality Can Vary
Another potential downside is the quality of your mobile home. While there are plenty of excellent manufacturers working in the mobile home industry, the quality of manufactured homes can vary significantly.
Therefore, it’s essential to get an inspection of your new mobile home before you purchase it. You will want to ensure that the house has been adequately maintained (if you’re buying it secondhand) and that it meets all safety standards.
4. Less Resale Potential
Unfortunately, as mobile homes are not typically linked to their land, the resell potential is not always an upside. Also, mobile homes are much more affordable to purchase than traditional homes, so mobile homebuyers aren’t as incentivized to purchase used mobile homes.
Still, this isn’t to say that you won’t be able to sell your mobile home. There’s a massive market for manufactured houses – both new and second-hand. At Creek Valley Properties, we work with countless mobile home owners to broker sales.
One of the best ways to ensure that the resale value of your mobile home stays high is to keep it in top condition.
Interested in Buying a Manufactured Home? Contact Creek Valley Properties in Michigan
Now that you understand the pros and cons of buying a mobile home, it’s time to decide if this type of house is perfect for you and your family. At Creek Valley Properties, we buy and sell the best mobile homes on the market. Browse our website to find the perfect mobile home or give us a call at 248-495-8664 or email info@creekvalleyproperties.net to learn more.
