How to Build Mobile Home Equity
Mobile homes are very desirable to many people because of their affordability and the fact that they give options to those looking to buy a home. Unlike traditional homes, building equity in a mobile home is a little more difficult but not impossible.
- Purchase a foreclosed mobile home. Look online or in your local newspaper in the real estate section for mobile homes in foreclosure or that have been repossessed.
- Purchase a mobile home at an auction. These are often sold far below market value so buying a mobile home at an auction can be a real steal and result in instant equity for you.
- Buy a mobile home at an estate sale. The families holding an estate sale are looking to liquidate assets fast and this could be a great opportunity for you to take advantage of a low selling price on a mobile home.
- Research mobile home pricing. One of the main reasons for depreciation in mobile homes is the fact that once new styles are built the old ones immediately become outdated, therefore decreasing the value. Talk with an appraiser to get an estimate on the value of the mobile in the next 2 to 3 years.
- Look for fixer uppers. Search mobile homes that have a selling price of at least $3,000 below the market value or are in need of repairs. To help save costs ask the seller if they would be willing to transport the home. Have it placed in a more desirable neighborhood, make the necessary repairs and increase the value of the property.
- Make a large down payment. If you only plan to stay in the property for a couple years you can build equity by putting a substantial down payment and making extra payments toward the principle.