“I want to sell my mobile home but everything looks so intimidating. Where do I start?”
If you have asked yourself this question, there isn’t anything to be ashamed of. Selling your home, especially a mobile home, can be a drawn-out process full of legal jargon, paperwork, and confusing regulations that would take the wind out of anyone’s sails.
Looking for information can be even more intimidating: Where do you go? What do you research? Where do you begin researching?
Don’t worry, we get it and are here to help.
Before selling your mobile home, here are some things you should know that will help you on your journey.
Know Your Property
Before you sell your home, you should consider whether or not you own the land the house is on. If you do, great! That means it is considered real estate, and you can sell it in the same way you would a traditional home.
If you don’t, then you need to be familiar with these three terms:
Lot-Lease (or Ground Lease): A situation in which a home is leased on land owned by another party.
Chattel: Any kind of movable personal property, including vehicles and homes.
Right of First Refusal: A land owner’s right to purchase a leased property during a sale if they can match the offer given to them by a third party.
Mobile homes – also called manufactured homes – are often leased on mobile parks, and about half of them are considered chattel property. Selling chattel is a bit more complicated than selling real estate since you will need to get whoever owns the lease involved with the proceedings.
Know Your Risks
Mobile homes are a different beast than traditional real estate, so there are several risks involved in selling your home.
For one, mobile homes can wear down much faster than traditional homes, which means that you may need to invest in repairing them before listing or trying to make a sale. This also leads them to seem unattractive or outdated to both potential buyers and real estate agents.
Second, there are fewer financing options available for people trying to buy manufactured homes. Buyers wanting to secure a loan have two options: FHA loans and chattel loans. FHA loans have stricter requirements and lower interest rates, while chattel loans are much easier to get but come with higher rates.
Keeping these risks in mind will help you stomp out any potential issues early, especially when securing a buyer.
Know Your Paperwork
Just like with selling any major investment, there is a lot of paperwork involved when it comes to selling your home. Make sure you and your buyer have the right documents to keep things going smoothly.
When securing a buyer, you should have (at least):
- Your home’s title (or Statement of Ownership)
- Up-to-date property tax documentation
- Insurance records
- Bill of Sale
- Mobile Home Appraisal results
- A seller’s disclosure form
In the state of Texas, transferring the title of a mobile home falls under the jurisdiction of the Texas Department of Housing and Community Affairs. Their website has a thorough FAQ that can help with any specific questions and legal concerns. They also supply a list of forms that you may need to fill out during the selling process.
If your home is in a mobile home park, you will need to get the owner’s permission before you make a sale. Make sure you ask them for written permission (and any other documentation) that gives you the right to sell your home.
If you are selling with the help of an investor or real estate agent, they will also be able to answer any questions you have.
Know Your Process
When selling your home, there are three important steps to keep in mind: pricing, listing, and closing.
Pricing your home can be extremely intimidating if you have never done it before. Markets fluctuate, land values change, and a bad price can, at worst, lead you to never find a buyer at all. Keep tools like the National Appraiser’s Guide at the ready when you are starting to consider setting prices, so you can get a good estimate on what your home is worth.
Listing your home can be done one of two ways: by yourself or with the help of a professional. Having an investor or real estate agent take care of things means they can put your listing on an exclusive database called an MLS, or Multiple Listing Service. Doing it yourself will give you a lot more paperwork and fewer eyes on your property.
Closing is when the buyer and financing have been secured and you are ready to pass the title to the new owner. This process will differ slightly depending on whether you are selling your home as real estate or as chattel: if your home is chattel, then the process will be like selling a used car. Otherwise, it will be the same as selling any other piece of real estate.
Having the help of an investor can make this process a lot smoother; always check your options before going it alone.
Sell with Buy My Mobile Home DFW
If you want to have a partner who will support you through the sale of your mobile home, Buy My Mobile Home DFW is here for you. We know that there are unique challenges that come along with mobile homeownership, and we want to help you sell your home, no matter your circumstances.
If you have any questions or want a consultation, our phone lines are open 24 hours a day, seven days a week at (866) 306-1074.