Steps for Selling Your Manufactured Home
Understand the complete journey of selling your manufactured home, from determining its status to successfully transferring ownership.
Selling a manufactured home involves a distinct process compared to selling a traditional site-built house. Understanding these differences, from legal classifications to financing nuances, can help ensure a smoother transaction. The process begins with determining your home’s status and preparing it for market, then finding the right buyer and navigating the negotiation, and finally, completing the necessary legal and financial transfers to finalize the sale.
Classifying Your Manufactured Home’s Status
Understanding your manufactured home’s legal classification impacts the sales process. Manufactured homes are typically classified as either personal property, also known as chattel, or real property. This distinction determines how the home is financed, taxed, and legally transferred.
A manufactured home is considered personal property if it is not permanently attached to land, often on a leased lot in a manufactured home community. The home is typically titled through a state’s department of motor vehicles, much like a vehicle. Buyers usually seek chattel loans. These loans often have shorter terms, typically 10 to 20 years, and can come with higher interest rates compared to traditional mortgages.
Conversely, a manufactured home is classified as real property when it is permanently affixed to land owned by the homeowner. This involves removing the wheels and axles, placing the home on a permanent foundation, and often “de-titling” it. De-titling removes the home’s vehicle title, combining its legal identity with the land, and involves filing an affidavit of affixation with the county.
Once de-titled, the home is taxed as real estate, and potential buyers may qualify for traditional mortgages, including FHA, VA, Fannie Mae, or Freddie Mac loans, which often offer longer terms and lower interest rates. This reclassification can enhance the home’s resale value and broaden the pool of eligible buyers.
Getting Your Home Ready for Sale
Preparing your manufactured home for sale involves both physical improvements and an accurate valuation. Physical condition impacts market appeal and potential selling price, including decluttering, deep cleaning, and addressing necessary repairs.
Deep cleaning and removing personal items create a more inviting space for potential buyers. Inspecting and repairing elements specific to manufactured homes, such as skirting, leveling, and utility connections, is important. Addressing plumbing issues, damaged siding, or other functional problems before listing can prevent buyers from walking away. Cosmetic improvements, such as touching up paint, updating fixtures, or enhancing curb appeal with landscaping, also contribute to a positive first impression.
Determining market value is another step. For homes classified as personal property, resources like the NADA Manufactured Housing Appraisal Guide, now part of JD Power Values, provides a baseline valuation based on manufacturer, age, size, and features. Reports from this guide range from approximately $35 to $55. For homes classified as real property, a professional appraisal can provide a market-based analysis, considering comparable sales and the home’s condition. Real estate agents experienced with manufactured homes offer insights into local market comparables.
Finding a Buyer and Negotiating the Sale
Identifying a buyer and negotiating the terms of sale are central to selling a manufactured home. Sellers can approach the market by selling the home themselves or engaging a real estate professional. Deciding between a For Sale By Owner (FSBO) approach and using an agent depends on comfort with the process and market knowledge.
Selling FSBO allows sellers to avoid real estate agent commissions, typically 4% to 7% of the sale price. However, FSBO sellers assume full responsibility for marketing, handling inquiries, legal paperwork, and negotiations. Homes sold without an agent may also sell for less, potentially around 15% less than those sold with professional assistance, with less visibility. Working with a real estate agent, particularly one experienced with manufactured homes, provide expertise in pricing, marketing, and navigating complex transactions.
Effective marketing strategies include online listings on platforms catering to manufactured homes, along with traditional “For Sale” signs. High-quality images and virtual tours enhance online presence. Engaging with potential buyers involves promptly responding to inquiries, scheduling showings, and highlighting the home’s features. Sellers must carefully evaluate offers.
A purchase agreement typically includes the sale price, payment terms, and contingencies such as financing approval or a satisfactory inspection. Earnest money, a deposit to show serious intent, is also common. Negotiating involves reviewing these terms and reaching a mutually acceptable agreement with the buyer, which may involve counteroffers and a closing date.
Completing the Transaction and Transferring Title
The final stages of selling a manufactured home involve completing the transaction and legally transferring ownership. The specific actions required depend on whether the home is classified as personal property or real property.
For a manufactured home classified as personal property, ownership transfer is similar to that of a vehicle. This involves signing over the certificate of title to the buyer, often with a notary if required by state law. A bill of sale also documents the transaction details. The buyer registers new ownership with the relevant state agency, such as the Department of Motor Vehicles or a housing authority.
If the manufactured home is classified as real property, the transfer process mirrors that of a site-built home. This involves transferring a deed, which conveys the property from seller to buyer. An escrow or title company usually manages the closing process, ensuring all conditions of the purchase agreement are met. This includes a title search to confirm clear ownership and obtaining title insurance to protect against future claims.
At closing, all parties sign final documents, including the deed and loan agreements if financing. Funds are disbursed, and the buyer receives the keys after a final walkthrough to confirm the home’s condition. Closing costs, ranging from 5% to 10% of the home’s purchase price, are paid and may include fees for title services, appraisal, and other administrative charges.