Tips For Selling Your Mobile Home On Rented Land + Must Be MOVED
Presented by Mobile Home Gone
The goal of these tips is to give you real-world information on what you will need to sell your home quickly. In the best-case scenario hundreds of mobile home buyers will be lining up to pay cash for your home – but in reality, this may not be the case.
Selling A Mobile Home That Must Be Moved
In 2018 approximately 5.35 million Americans sold their home, and one in most states around one in most states between 1 in every 8 to 10 residents live in a mobile home. Unfortunately, you have one major variable to worry about considering the unique situation of your home, it doesn’t come with the land it sits on. The home buying process isn’t really a spontaneous one. Many people spend months just looking for the home that best fits their needs. Adding the “land not included factor” or to the home buying to-do list is just another cost for the potential buyer and one that isn’t so enticing, to say the least.
Before we get started, let’s talk about money. Used mobile home buyers will most likely be either cash buyers or payment buyers. There is very little financing for used mobile homes on rented land or that must be moved in most parts of the country.
- A cash buyer will be the minority of buyers you speak with. A buyer with $5,000-$30,000+ for a used mobile home will be downsizing, cashing out other investments, or using a large chunk of savings to buy a mobile home. A 2019 banking survey found that 58% of Americans have less than $1/// in savings. A buyer spending all cash has their pick of any mobile home. Remember, cash is KING!
- A payment buyer is any buyer with a “down payment” and a monthly income to pay you over time. When you sell to a payment buyer you want to make sure the down payment is large enough to ensure the buyer doesn’t default and leave your home. Payment buyers are EVERYWHERE. Most people would love to own a home for market rent – this is essentially what you’re offering.
I DO NOT suggest this for homes that must be moved. The last thing you want is to sell your home for a small down payment, then, once the buyer has moved the home to their land, they stop paying. To recoup your money you would need to not only repossess the home but also find somewhere else to move the home and much more.
Understand your options when it comes to selling:
Now that you understand cash buyers are rare, the question is how fast do you need to sell your home?
- How soon do you need to sell?
I need to sell in 60 days or less!
If this is the case then you are most likely being evicted by a mobile home park for non-payment or face some sort of life change. If this fits your description then time-is-of-the-essence and you need to sell fast or you risk losing the home, losing money, or giving it away to the park for free.
Here are your options:
If the property is clean, you may be able to sell this home for cash to 1.) the current mobile home park the mobile resides in 2.) a different mobile home park that will pay cash for this home 3.) a local mobile home investor (like MHG) or 4.) a buyer that has all cash and is looking for a great home.
If the property needs repairs or is not clean, then you are looking for a buyer that will spend money to make repairs after you buy. To do this, a buyer will typically be looking for a low cash price to make the needed repairs. Accepting a reduced price or monthly payments will allow you to resell the home quickly and make a profit over time.
Your Mobile Home Cash Offer
I need to sell between 60 days to 6 months.:
Fortunately, you have time to wait and use resources to market your home for a cash buyer and wait. You could even list your home in MLS for 60 days with a Realtor. If you sell your home for payments you will be able to charge a higher sales price as opposed to selling for all cash.
It’s time to decide how you would like to start advertising for buyers!
FSBO Sign: A “For Sale By Owner” sign should be displayed where it can be easily seen, like in a front window or yard.
Online: Websites like craigslist.com, Facebook marketplace, and trulia.com can be useful for advertising. These are free sites for buyers to look at. Did you know that Mobile Home Gone runs many mobile home Facebook groups?
Check out some of them at our under our groups tab at our Facebook page.
Newspapers: Advertise in local community newspapers in the “For Sale” sections. If you are renting then make sure to advertise in the “For Rent” section.
Yard Signs: Create yard signs from your local home improvement store, using a black sharpie. Put these signs in your front yard or in local road intersections if your city/county allows it.
- Do not be bullied!
It is vitally important to know the value of your home and demand a fair price. On the other hand, you shouldn’t overvalue what your home is worth. Seek fair win/win offers that allow both buyer and seller to get what they want.
If you decide to sell on payment, remember YOU are in control. Be sure to prescreen every buyer that says they want the home. Your mobile home park will also likely want to prescreen this buyer, but you need to investigate their background personally. Many websites offer cheap screening to check for criminal history, credit history, eviction history, and sexual predator status. Ideally, you will find “0” concerning results.
Settling for all-cash you are in less control- so know the minimum amount you will accept for a fast cash sale. Be sure to consider all the costs the buyer will be taking on. Things like back lot rent, moving cost, and repairs should all be taken into consideration of price.
- Verify the buyer has funds!
Before selling your mobile home for all cash you will want to verify the buyer actually has their funds available. This also makes certain no buyer is wasting your time with dishonest offers. Remember the old saying “Buyers are liars!”
- Follow up with the buyer (rented land)
Within 48 hours of you and the buyer’s verbal agreement, your buyers should work to get approval from the park. If this is not in process within 48 hours, the buyer may be stalling.
Before you stop advertising and showing the home, make sure the buyer has been approved by the park. Wait until the park manager tells you the buyer has been approved to move in before you stop talking to prospective buyers.
- Closing documents
Seller’s information sheet (only if accepting monthly payments). This is a general information sheet with the seller’s information. Collect everything like names, dates of birth, social security numbers, job history, current job info, W-2’s, and bank account information. You will need similar information to perform background checks.
Bill of sale: This is the mobile home version of the HUD-1 closing statement. A bill of sale will describe the terms of the sale, how much was paid, if the home was warranted, and if fixtures of appliances were included. This will also include the mobile home year, vehicle registration number, serial numbers, address, dimensions, and make and model of the home. You keep a copy and the buyer retains a copy.
Promissory Note (only if accepting monthly payments): This is an optional form to specify details of the payment instructions, financed amount, and payback terms. It is vitally important to follow the SAFE act and TIL (Truth in Lending) practices. You keep an original and the buyer gets a copy.
Agreement after closing: Only use this if you are remaining in the property for a short while after the buyer purchases the home. The agreement after closing states that 1) you will be remaining in the home after purchase. 2) that you have “X” number of days to leave. 3) When you leave you will leave the home clean. 4) that the buyer will pay you the remaining balance when you leave and take the keys. You keep a copy and the buyer keeps the original.
For More info on how to do a mobile home closing and title transfer check out our other articles!
- Closing Appointments.
This is when you will be signing all the paperwork and give the titles to the buyers. If they are making payments make sure they go to the DMV (or other mobile home titling authority done in your state) to ensure the buyers add your name as “Lein holder” to the new title. In addition, you will need to give the DMV your address to mail you the original title. You will hold the original title until you are paid every dime in full. Be aware it may be good to have a notary available for this.
Insurance: If you choose to accept monthly payments, make sure the buyers have insurance in case of damages. The buyers should add you to their policy as “Additionally Insured”. This will likely not be very expensive for the buyers and will make sure you are insured for any unseen circumstances.
The Three Biggest Deal Breakers For Homes That Must Be Moved
Very few buyers and even fewer sellers have any idea of what all goes into moving a mobile home. From cost, to permits, to laws and regulations it can be a confusing and overwhelming process. Below are tips to help close the deal on your mobile home that must be moved easier.
Laws you need to know-
The most important law you need to know is that you can’t move a home built before 6/15/1976. This was the beginning of government regulations of mobile home building standards. Since there were no set standards before this date the DOT in most states will not allow the home to be moved.
Laws your buyer needs to know-
What are the unique laws of their (the buyer’s) county? Because you’re selling a home that is being moved the likelihood that your buyer may be a resident of another county is very high. Laws regarding mobile homes vary from one county to the next. Similar to typical residential zoning laws, which mobile homes most also follow, counties have unique laws in regards to the specification of the homes they allow in. Mobile home laws may include restrictions such as age, width, roof pitch, siding, foundation, windzone and more. Be sure that your buyer is familiar with these laws as you do not want to commit your time and effort to a buyer who ultimately cannot perform.
As mentioned above, there are little to no financing options for used mobile homes that must be moved in many parts of the country. The lack of traditional funding means that over 95% of used mobile homes sold by individuals will be sold all cash.
Considering the average household income of a mobile home owner in the US is 34,/// it’s important to carefully consider your buyer when pricing your home. As a seller you should always look to get maximum value out of your home. It is still important that you consider all costs involved for your buyer. Remember, you’re selling a mobile home that must be moved. The average cost of moving a mobile home is roughly $5/// per section in most parts of the United States.The moving cost is another financial obligation your buyer must take on when purchasing your home.
Moving A Mobile Home
This one is obvious but needs to be mentioned. The biggest thing that sets selling your homes that must be moved apart from the traditional home selling process is of course the actual move itself. Finding a mover who is available and able to move the home for your buyer is a major key to getting your home sold. Call around and talk to local movers. Find out which movers may be available during the time frame you need the home moved and how much they charge to move the home within a 5/ mile radius. Finding out this information ahead of time will greatly increase your chance of closing the deal, save your buyer a ton of time and help you better determine a fair asking price.
If you have any questions in regards to selling your mobile home without land or must be moved please feel free to reach out to MHG. We would be happy to help any way we can. Contact online at www.mobilehomegone.com or give us a call at 762-218-2284
Good luck and “Happy Mobile Homing!”