Mobile Home Values – Do They Really Depreciate That Fast? By Scott Krager At Isnare.com Ezine Articles

When faced with purchasing or investing in mobile homes, some people tend to do a double take once faced with the threat of rapid depreciation of their home or property. There is this talk that mobile homes have a higher depreciation rate as compared to conventional homes. While there is some truth to the way mobile homes do lose value, they are not actually that accurate in saying that they are experiencing depreciation.

Lenders and the Decreased Value of Mobile Homes

Mobile home loans are one of the harder loans to come by simply because lenders and banks balk at the idea of a movable house. While these movable houses may have a certain value that need not depreciate because of the quality of the home itself, the price of this manufactured home does see a marked drop in value simply because of the situations this type of a home is usually placed in.

When a borrower fails to pay for the mobile home and it gets repossessed, the lenders usually fail to gain back the entire amount that was borrowed on the unit, thereby giving them the feeling that the mobile home's value depreciated. This is not true depreciation in the right sense of the word, but rather a failure to get the total amount on the unit simply because of the former owner's inability to make the payments necessary for the home. This problem is also compounded by the fact that people view this as a depreciative move and does not serve to help the situation at all.

Repossessed mobile homes are viewed as a good investment, however, since you will be getting a mobile home of basically good quality at a substantially lower price simply because it got repossessed.

The Land You Put It On Helps

One other reason why mobile homes seem to lose some of its value is in the locations that they are being placed on. A lot of manufactured homes are being placed in rental parks that have a lot of similar units in them. While the location of the house in the park may have no significant bearing on the value of the house, the fact that it is placed on rented property does. Putting a mobile home in a mobile home park will indeed lessen the inherent value of the home since the parcel of land the house stands on is not part of the home itself.

Putting a mobile home on a lot that you own substantially increases the value of the mobile home since the land that it is found on is now seen as part of the overall home equation. Having your own land to put your mobile home on will greatly affect the way the value on your property moves.

There are still other factors that may affect your mobile home's value like the condition your home is in, your location and the size and make it is in. While your property may or may not depreciate, the value of your mobile home is something you should know about and keep yourself updated with.

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