I’m writing an offer on a park where 24 of the homes are 1990s rentals, 14x70 and 16x80. Quick question, what’s the average value of those homes? I haven’t been inside any of them yet, I’m just writing the initial offer.
I know that normally POHs carry very low valuations, but since these are nicer homes I was wondering what a market rate might be.
Maybe $15,000 to $20,000 on the high side – it is going to completely depend on 1) the condition and 2) what market you’re in and, as a result, what the homes go for. The values in Wisconsin will be much different than the values in Mississippi.
A good rule of thumb is that the homes are worth what they can be sold for on contract in your park with a reasonable down payment. If you run an ad on CraigsList showing photos of the home inside and out and list it for $15,000 with $2,000 down and $500/month for 5 years, and get 20+ good leads in a week (‘good’ means the people confirm they actually have $2,000 cash money), then that’s probably a fair price for you to pay the seller. Maybe more. However, if you only get a few responses to the ad, and in searching CraigsList you find other MHPs selling similar homes for $9,900 with $0 down payments, then you are in a much rougher economy, and $15,000 is too high.
Best,
-jl-