Manufactured homes have become an integral part of the housing market in the U.S. with over 17 million people adopting this option for living. The policies of the home manufacturer, as well as the numerous federal and state laws, govern the pricing of most new pre manufactured homes. Once an owner occupies a home, the appraisal process excludes the various standardized forms and procedures. One can appraise a manufactured home through many available methods, which we describe in detail below.
Assessing the Location
The location plays an important role in determining the value of a pre manufactured home. This value may increase if the home sits on its own land rather than land you lease. Leased land can lead to depreciation in value for not only manufactured homes but also for site built homes. The general rate at which homes located in leased land depreciates is by an amount of five percent per year.
Modular home manufacturers agree that when you assess the location of the home, you should also consider the surrounding area. This is because manufactured houses located in a good neighborhood or community carry a much higher value than other site ready homes in other locations.
Evaluating the Home Condition
The general condition and status of the home is another major factor that affects the value of a manufactured home. This will vary depending upon the many aesthetic and purposeful improvements as well as the state of housing demands in the area. Manufactured homes that require many interior and exterior repairs will provide only lesser value than homes maintained in good condition. In the process of appraising, a buyer must calculate the cost of all the repairs and deduct it from the evaluated value of the home after the appraisal.
If the home is in a manufactured home community, you must also consider the condition of the surrounding manufactured units. The appraised value of the home can be much higher if the units surrounding it are also well maintained.
Comparing the Home
Another effective way to calculate the value of pre manufactured homes is by comparing it with other home units with the same characteristics. This is better done by comparing the home with those in the surrounding neighborhood. You may utilize many online resources to access vital information about these homes. Contacting nearby home community managers and used home dealers is another option to gather this information.