From the Blog
What is Manufactured Home Depreciation and How to Stop It
We’ve all heard the rumors that manufactured homes depreciate in value quicker than stick-built or “traditional” homes, but that isn’t necessarily true.
Just like with any piece of real estate there are many factors that need to be accounted for to stop or slow down depreciation.
As a possible investor and homeowner, it is important to understand all your options available in the market.
In the end, depreciation can oftentimes be inevitable. Material things do not last forever in prime condition. Still, when it comes to resale value, your manufactured home’s value can sometimes increase. But let’s take a look at depreciation first.
So, What Can You Do to Stop or Slow Down Depreciation?
> Think About Location
Whether you are buying a stick-built home or a manufactured home, location has to be one of the most important factors to take into consideration.
Contrary to popular belief, manufactured homes’ values do tend to appreciate over time rather than depreciate. (To learn more about the benefits of a manufactured home, be sure to read our About Manufactured Housing page).
In fact, manufactured homes generally increase in value at the same rate as other homes in the area.
When considering location, the following can also affect the value of the home over time:
- Quality of Local Schools
- Employment Opportunities
- Proximity to Local Shopping
- Proximity to Highways/Railroads
- Ease of Access
- Noise Level of Traffic/Trains
These factors affect any kind of real estate property just as much as they would a manufactured home. You should still take “traditional” factors into consideration when thinking about buying a manufactured home.
> Keep Up With Maintenance
Mobile homes don’t have expiration dates and can last for countless decades with proper maintenance, updates, and a little extra care.
The maintenance is essentially the same as a stick-built home with only a few differences such as skirting and roofing.
In fact, there are seasonal maintenance checks that you should be taking care of to make sure that your manufactured home is in good shape. The truth is that these maintenance checks should be done year-round not only to avoid depreciation but also to make sure that you and your family stay happy and healthy in your home.
- Lawn & weed maintenance overgrowth can encourage pests and stubborn weeds to move in. Mature and well-maintained landscaping helps with resale value
- Clear gutters & spouts to avoid water leaks in your home. Water damage can decrease the value of the home if left untreated
- Change out air filters regularly to help keep your furnace in good working order. Without a clean filter, heating and cooling coils will clog up, causing the components to work harder, and ultimately fail
- Test smoke alarms, update the batteries, and check functionality. Fire damage will decrease the overall resale value of the home and is obviously a huge safety concern
- Raking leaves helps avoid a disheveled yard and leaf blockage in drains or gutters. Well-maintained landscaping helps with resale value
- Inspect windows to check for proper sealing and insulation to prevent overworking your heater
- Prevents pests from entering the home who may also be seeking warmth
- Inspect skirting for holes and foundation for cracks. Solid skirting and foundation retain value, while damage or cracks can cause problems long-term and reduce the resale value
> Take Into Consideration Your Manufactured Home’s Age
Unfortunately, if your manufactured home was built before 1976, this could be a dealbreaker regarding its value.
Why, you might ask?
In 1976, the HUD code was instated in the United States. The code sets out standards that are aimed at regulating the safety and build quality of manufactured homes.
Since then, the term “manufactured homes” came into use to distinguish between these homes and “mobile homes” like RV’s.
Homes that were built after this were made to meet these new criteria. They will definitely be valued higher than manufactured houses that were made before this date.
You should also be aware that revisions to the code were made in 1997 and 1999. So if your home was built before then, you should check to see whether it is still compliant.
One important reason why newer manufactured homes will be valued higher is that it’s easier to get financing for them.
It’s very difficult to get financing for mobile homes that don’t comply with the HUD code.
We are proud to be one of Western Michigan’s largest providers of manufactured housing communities, committed to improving our residents’ quality of life.
We offer manufactured homes that allow you to reap the benefits of financial savings, time efficiency, community belonging, and more.
You’ll be able to get a home at the price of an apartment, but with the liberating feeling of independence that comes with ownership.
At Aspire Communities, our mission is to create beautiful manufactured homes that you and your family are proud to call home.
When you choose to live with us, you choose to live in a community mindful of your needs, that’s eager to provide you with the companionship and respect you deserve.
Feel empowered to take control of your life in a home and community that supports you. Join the 2,000+ happy residents currently living in Aspire Communities’ welcoming neighborhoods.
Contact us today to learn more about available homes and see how we can help you find the right fit.
P.S. If you’re still wondering if a manufactured home is a good option for you, make sure to read our blog post about how owning one can potentially be a great investment for you and your family.