Need advice: Buying a mobile home

[A.Balaban]

Fast story: I'm going to look at a mobile home about 50 minutes from where I live now tomorrow. I have never owned or bought anything except my car. True facts. I have about 14 hours to figure out what I have to do. It's a for sale by owner.

 

For the mobile home:

What should I look for problem areas? I already check... all lights, sinks, under sinks, window sills (for cracked windows, drafts, etc.), showers/toliets...

 

If I decide to actually buy it....

What do I need to do? What paperwork do I need to see?

How does this typically work? I give him cash, he gives me title? What about the mobile park "lot rent"? I really don't want to be swindled...

 

Since there is no financing....

 

Should I expect keys same day? Should i pay a deposit if they are currently still living in mobile home and give them x amount of days to leave? How does that work?

 

I would like to bring in someone to assist me, so what is a good person and how much would it cost (estimate)?

 

Sorry I am rambling, but I hope someone has some advice for me. I rushed into buying my car and later regretted it, but I don't want to make the same mistake again.

[milovany]

Ashley, we bought a home in a similar situation once (mobile home in a park) and while I know that God allowed us to do so, and we have happy memories of the time we lived there because we had a pretty cool lot in the park -- right on a pond with big windows overlooking it -- financially it was not profitable. Finances aren't everything, which is why I still refuse to say it was a mistake, but they ARE something to think about. We moved away from this town and had the house on the market. We received an offer that we accepted, but the park owner rejected the new tenant. It sat on the market another six months and eventually sold for $10,000 less than we bought it for.

 

I'd only consider doing it if you are getting a GREAT price -- lower than market value -- and if you don't plan to move until it's paid off. Although once it's paid off, how nice not to have a large house payment! Or consider it if, as we did, you see reasons beyond finances for purchasing it (great location, proximity to family, etc.).

 

I was probably no help, but just wanted to provide some input based on our experience.

 

ETA: Aside from that, you'd be buying an item, not real estate. It's not quite the same as buying a stick-built home on land that you will also own, but as I recall, we did use a realtor and title company for that closing, so there is a title that needs to be registered, I assume. I think it's probably different in different areas/states, so you may need to talk with someone from your own state who knows about these things. Or see if you can Google it. It's a home purchase, though, so I'd definitely want to have it checked out by a contractor or home inspector. Hope things work out for you.

Edited April 6, 2012 by milovaný

[Catwoman]

Ashley, is there a place you can rent instead of buying the mobile home? I can't imagine that you wouldn't lose money on the resale when you're ready to move out of it.

[A.Balaban]

Ashley, is there a place you can rent instead of buying the mobile home? I can't imagine that you wouldn't lose money on the resale when you're ready to move out of it.

 

I would be buying the mobile home outright. So, no financing. Don't have to worry about losing money

 

Recooping my cost wouldn't be an issue. I would still want to check and see the value of the other homes in the market, but I don't think it would be an issue. This guy said I was the third offer in less than one day. I told him outright my offer wasn't firm until I saw the place, but I let him know I was willing to go higher than his current offer. If it worked out, I'd also be open to renting.

 

The mobile park landlord will be an issue to deal with, but I will have to talk to him to see what kind of landlord he is before I can make any assumptions.

 

And... the lot rent is $200 cheaper than my current rent. I could afford the rent on my own, working a job that pays comparable to what I made before and still cover basic expenses. If I paid my current rent, I would be in the hole at least $200.

[Annie]

Mobile homes virtually always go down in value. I read your other thread, and it seems very risky to put all of your money in a depreciating asset. Is it possible to find a lace to rent? Even if it takes you a little longer to leave? I understand wanting to go right now, but since you didn't indicate any danger to yourself or your kids, maybe you could wait to find something that wouldn't put you in such tough financial shape. Ownership is expensive and lacks flexibility. There will be repairs that come up regularly which will require time and money to fix. When you're starting out, those two things will be hard to come by. I would much rather call a landlord when the roof is leaking. What if you find a good job that would require a move? You would be stuck.

 

Buying something is a huge financial decision to make during an emotionally trying time. My advice would be to try to find some other way if at all possible. :grouphug:

[Catwoman]

I would be buying the mobile home outright. So, no financing. Don't have to worry about losing money

 

I know you said you'd be buying it outright; I just meant that mobile homes depreciate greatly in value, so ultimately you would be losing money on it when you sold it to someone else.

 

Recooping my cost wouldn't be an issue.

 

I'm not sure what you mean by that. :confused:

[Catwoman]

Mobile homes virtually always go down in value. I read your other thread, and it seems very risky to put all of your money in a depreciating asset. Is it possible to find a lace to rent? Even if it takes you a little longer to leave? I understand wanting to go right now, but since you didn't indicate any danger to yourself or your kids, maybe you could wait to find something that wouldn't put you in such tough financial shape. Ownership is expensive and lacks flexibility. There will be repairs that come up regularly which will require time and money to fix. When you're starting out, those two things will be hard to come by. I would much rather call a landlord when the roof is leaking. What if you find a good job that would require a move? You would be stuck.

 

Buying something is a huge financial decision to make during an emotionally trying time. My advice would be to try to find some other way if at all possible. :grouphug:

 

:iagree:

 

That's what I was thinking when I suggested that you rent instead of buy, at least for a while.

[sbgrace]

Have you budgeted in child care for when you begin work? If hubby is going to do that (??) how will that work re: the influences you're trying to get away from? Maybe this is near family and it's all set that way?

 

Another thing...you don't know for sure if the man really had three offers on his mobile home in one day do you? I find it hard to believe honestly. Are you sure he's telling you the truth?

 

I'd be hesitant to make a decision this quickly. Is there somewhere else you could rent or temporarily stay while things get sorted out?

 

You've had a lot of shock and emotional stuff lately. I'm going to encourage you to slow down, run the numbers, and think things through. :grouphug:

[A.Balaban]

I'm not rushing. I'm just looking for some advice if anyone has had any experience.

 

it's just step one, and I am a fact-gatherer. I love to inundate myself with facts, and different opinions.

 

I would say this woman was telling me the truth. When I asked her if it was still available, she told me there were two offers. I asked what the offer was (I was not prepared to go much above asking price, which she said was nego.) Well, offer was less than asking price. If I was going to make up an offer, I would have gone above my asking price.

 

Unless she is clever, and discounting her own asking price and making up offers, then yea, she could be lying. It's much more likely she got a low-balled first offer, and then got a second offer who bumped it up a bit more. Either way, like I said... I was just looking for some advice about the process.

 

So far this is my plan:

 

At the beginning:

- Confirm name and number of mobile community owner (I found it on the internet, but you know, verify with tenants).

- Verify name of current owner against lease documents and title.

- Acquire serial number, make, model and manufacturer number of mobile home.

- Mobile home "first glance" inspection (performed by me) aka "the tour"

- Discuss details of land-lease with both current owner and mobile park community owner. Find out about any fees, deposits, etc, and tenant obligations and park rules and regulations.

- Walk around mobile home park, talk to neighbors, etc. (I'm going to do this first before I meet with mobile home owners)

 

If everything looks good so far, we would discuss other things, like:

- appliances included, etc.

- Call lawyer and get his input. (on Monday)

- an "offer" - which would stipulate it could be cancelled for any reason within a certain amount of time with a refund of my "good faith" deposit. (I still need to work out details on how I should hold this deposit, because I can't give it to them-- it would be held in an escrow account, but it seems pointless for such a small transaction?? no idea) Gives me x amount of time to get a home inspection, which leads me to...

- timeline (when they can be out, when we should be in, etc.)

 

 

So, after speaking with them, and the owner of the mobile park, then I,

- Mobile home inspection ($$$)

- Title Search (make sure title is clear of any liens) It seems like I may be able to run this myself or for a nominal fee. I am still looking into this...

- Apply for tenancy in the mobile home community park- I am assuming that this whole process would only continue if he gave me a favorable impression when I first talked to him. Obviously, as my "supposed" future landlord, if I don't get a favorable impression, it's not likely I'm going to want to pay rent to him so the whole thing would be off.

- Assuming everything works out, I get approved to live in the mobile home community park, and then the "closing" (date where I give seller the rest of the $$$). We split cost of transfer tax. I'm considering asking them to help cover the cost of the title search (I have no idea how much that costs or who performs that). If I can do it myself for free, then the only other fee would be the notary. Do we even need it notorized if they are signing the title over (like a car?) What would I get notorized?

 

ANyway that is just a basic idea running through my head, I am sure it is not perfect. I've never bought anything before, so this is just what I am thinking. I know the "offer" part is complete b.s. totally not what a real estate person would do, but I'm paying with cash, and I need a contingency, but I also need to "lock" them in to my offer (if I made one).

 

Anyway, I've been rambling too much tonight. Time for me to get some sleep. Thanks everyone.

[WishboneDawn]

Above all else, make sure a lawyer looks over the sale agreement.

[tex-mex]

I don't like the idea of buying without some legal representation like a lawyer or real estate agent. But that is just me.

 

After reading your other thread... I would first suggest you NOT to buy anything until after the divorce. You are in shock. And doing a big purchase like this may cause regrets later. I would move in with parents and get a p/t or f/t job. Save some more $$ for a down payment for a rental. Then once you have a sizable savings, make the move.

 

Another thought is that the lawyer of your soon to be ex may cry foul if you use the $$ for a purchase before divorce? It could be contested and you may owe him $$. Be careful. I would make a separate checking account ASAP and begin saving funds. You really need to look for a good childcare right now before looking for a new home to buy, IMO.

[melissad2]

Don't do it! Just my experience talking here...when I was first married we bought a mobile home and it was awful. We bought it new and within months things started breaking down. The plumbing is plastic in most, the sink fixtures are plastic coated with chrome paint. The toilets are cheap and flimsy, the cabinets are particle board are are destroyed by the least amount of water. We quickly built a house and got the heck out of there at a huge loss. I would never buy another mobile home...I would rent one if I had to though.

[catz]

I don't like the idea of buying without some legal representation like a lawyer or real estate agent. But that is just me.

 

 

You can still use a real estate agent to cross your t's and dot your i's in a For Sale By Owner situation. I've done it. The fee would be based on the cost of the property. I would not buy without that. If you're serious, I'd also consider an inspection by a professional. I think you should reconsider jumping into this though and give yourself some time. :grouphug:

[Scuff]

$200 extra rent a month is $2400 for the year. How much are you paying for the home? If it's more than $2400, you're not coming out ahead for the year. If it's less, you still have to take into account repair costs. Since this is a temporary situation (things with dh up in the air, no job yet, ect) it might be a better idea to bank that $ and use it for the extra rent until you know where your life is headed.

[TGHEALTHYMOM]

I would not purchase a mobile home. We lived in one for a few years, they are not safe in thunderstorms or tornadoes.

But they do go down in value quickly so if you do, do not spend a fortune.

Know what the market is now and that it is not stable.

Also, I would definitely check the heating and cooling costs. Is there any shade?

I hope you find a safe place to live, within your means.

Renting would be better to start.

[mytwomonkeys]

if i missed it, i'm sorry. but are you buying a mobile home or a mobile home and land??

[KayT]

I wouldn't purchase anything till after divorce. If you purchase while still together doesn't this mean he has a right to 1/2 or it?

[PiCO]

I am looking into buying a mobile home right now also, so thanks for your list- it looks great!

 

I think you have received a lot of good advice here. I think you should hire your own real estate agent of attorney, to make sure everything is strictly legal.

 

I would also shop around. This is a major purchase, even if used mobile homes are relatively cheap. Don't buy new, as others have noted the value goes down fast.

 

I have been watching prices on Craig's List. Remember, if there are empty lots in the park you want to live in, you can have a mobile home brought in. Check how much that costs, so you know what the real prices are for homes outside your area. The mobile home park owner would love to have a new home brought in, as long as it meets park standards.

[besroma]

I would definitely rent. Mobile homes can become a money pit. They are expensive to heat and cool and, due to the particle board flooring in most, one major leak or flood is often called "the kiss of death."

 

You may end up needing the money for health care expenses or a car repair.

 

If you do pursue it, ask the neighbors what they know about the mobile home. If it has sustained damage, or the previous tenants did not take care of it, hopefully they will tell you.

 

And,if you so make and offer, include plenty of contingencies....you can get out if the inspection lists discoveries not to your liking, etc. Do not accept it if the seller can pay to have those repairs made, but you are not comfortable with the findings.

 

Definitely have the home checked for mold and mildew. You can stick your head in the crawl space and tell a lot about a mobile home. Does it smell dry or musty? Is the covering underneath intact? If there are holes, it is very easy for animals (rodents, snakes) to crawl up in the mobile home.

 

If you are set in this, will he let you rent with an option to buy?

 

Why do you want to buy instead of rent?

Edited April 6, 2012 by besroma

[Shellers]

My aunt owned a mobile home on three acres for over 30 years. She bought it used and moved it onto her land. Her place went up in value but that was probably due to the land value.

 

The biggest problem with her double wide was she had a hole in the floor that she covered with wall to wall carpet. Years ago she had a big potted plant and water slowly leaked from under it, rotting her floor.

 

I'd recommend walking all around the place feeling for levelness and possible hidden holes in the floor.

[elegantlion]

I would not buy without an uninvolved third party to oversee all my decisions and emotions. A trusted friend that speak honestly to you would be helpful. If you don't have that, run everything by a real estate attorney. :grouphug:

 

The other issue you'll need to address is insurance. I'm not sure how mobile homes are underwritten now, but you'll want to consider that. Years ago I know some companies would not insure a MH over a certain age.

 

I'm going to agree with everyone else as well. If you have the money to do a cash deal on a MH, I would wait and rent until your future plans are more clear. Long term financial decisions made at the height of chaotic times rarely turn out well. I'm a detail person too, I love to collect details when deciding on something. Please don't discount the long term consequences of making this kind of financial deal right now.

 

I am sorry you're dealing with this and wish you all the best.

[Jan in SC]

I would rent instead of buying a mobile home.

 

Are you prepared to pay to move the mobile home if the land rent exceeds your ability to pay, or if the land owner decides to sell? I would think that would be expensive and selling the mobile home might take a long time.

[besroma]

The forum and articles on this website provide a wealth of information on used mobile homes:

 

http://www.mobilehomerepair.com/

[Catwoman]

Thinking of you today, Ashley, and hope you're doing OK. :grouphug:

[Happy]

You've gotten good advice on this thread. The only other thing I'll toss in is that every time a MH is moved, it damages it....it may not be apparent, but it does. Ask how many times this particular MH has been moved in its lifetime.

 

A MH will often leak around the roofline and it won't show up, but eventually the floor near the walls rot away. Check where the floor and walls meet.

 

I lived in a MH on a farm for 15 years. God willing I will never live in one again. They do serve their purpose...cheap rent being one.

 

I'm a real estate agent...I would recommend you find someone like me locally to help you out.

[A.Balaban]

I wasn't able to go look today, so I will go tomorrow if it is still available. I don't know. I think I'm just going to wait.

[LittleIzumi]

We've had our mobile home for over three years now. We had one furnace issue (a guy in our church looked at it & found the problem, super easy & free fix) and a couple of dishwasher issues (friend fixed it until we could replace it). No other issues at all. It's a newer home, though (2005).

Edited April 6, 2012 by LittleIzumi

[Tarreymere]

I've lived in mobile homes off and on over the last thirty years. Never had any major problems with any of them. Honestly, the regular house we had was more of a PITA and needed more maintenance, was more of a money pit. I was glad to leave it and go back to an MH.

 

We bought an older MH. Ours is a 1995. No dishwasher, no central AC. We had a mobile home repair guy come out and look it over for us before we bought it so we would be aware of any issues. We got the title, just like buying a car. We had to get approved by the park to move in and we didn't complete the sale until we were approved, and that was basically a criminal background check. No problems.

 

We haven't had any problems with our home and we have had it five years now. Ours has a shingle roof, but if you get one that doesn't you need to have the roof coated every other year or so. Our furnace and hot water heater are original and run well. No leaks, no soft spots in the floor (things to watch out for). We do put plastic over the windows in the winter to help keep heating costs down, but this place is a lot cheaper to heat than our house was (it is smaller, and the windows are more efficient). We don't live in an area where AC is a necessity. Or in a place that gets tornadoes. Never had any problem with thunderstorms.....not sure why that was a concern.

 

Our park is nice and well-maintained, and the neighbors keep their places and lots looking nice. It IS a lot cheaper than rent or buying a regular house. Our park manager manages the park for a corporate owner. He is a nice guy and willing to give advice and help out beyond his job description. You'll want to look over the rules for the park you are considering since there are likely rules about kids and pets and lawn stuff you will want to know about before you make your decision.

 

We might move out onto our own land at some point. We did have an estimate on moving to a place about fifteen miles from where we are now and I think it was supposed to be about two thousand total but we were told that was high. We didn't buy that land so we didn't look around any further.

 

We like MHs. They do depreciate. You can trade them in like cars at an MH dealership too, if you are so inclined. Our experience has been that they are low maintenance and more efficient to heat than a regular house. We have one elderly couple in our park who live in a very small vintage 1962 MH. It is so well maintained that I joke to Dh that I want to buy it for our retirement home. Some people hate MHs and would rather pay more to live in an apartment. Personally, I don't care if all I get when I sell it is for the metal at the scrap yard since we have saved so much by living here. Why should I rent an apartment and pay three or four times my lot rent and walk out with nothing then either? How is that better?

[besroma]

I wasn't able to go look today, so I will go tomorrow if it is still available. I don't know. I think I'm just going to wait.

 

In your situation, I think that is wise. :grouphug:

 

I wouldn't make any quick decisions with such a large purchase.

[Mrs Mungo]

I wouldn't purchase anything till after divorce. If you purchase while still together doesn't this mean he has a right to 1/2 or it?

 

It depends upon the state. But, in community-property states you would probably have to buy out "his half" of the mobile home by giving him cash for it.