How We Buy Mobile Homes
Sell My Mobile Home
What Will I Get and How Do They Calculate a Deal?
To sell your mobile home fast, we encourage you to educate yourself before you decide what your best for you. Knowing what to ask is important in feeling confident in your decision. Sell my mobile home is something we hear a lot from our clients.
What follows next is a well thought out, fully detailed explanation of how the entire house buying process works from beginning to end. Please read through this as reading this article will make you an expert on the topic.
Here you are wondering How do I sell my mobile home, thinking that we are like every other buyer that offers you an insultingly low number for your house. A lot of these other companies boast fair offers and the best solution, without ever seeing the property or asking how they can serve you.
Believe us, they are not working for you. Many of these companies are looking to take advantage, by getting you on an exclusive contract and make you wait until you are forced to sell for less, while they make more. Those offers are inflated offers to discourage you to look for more offers from other companies. They will try to have you sign a contract and after the contract is signed they will attempt to lower the offer using the results of an inspection. Dont Fall For That!
But enough about doing it the wrong way. Let us show you the right way!
How We Make Our Offers To Buy Manufactured Home
Its In Our Best Interest To Give You Our Highest Possible Offer.
We Buy Houses companies will often try to give you the lowest possible offer. This doesnt make any sense to us. We spend time and effort doing your mobile home analysis so we can get you cash or the best offer for your mobile home. We spend time and money driving to properties in our respective areas to understand the market. All these services are 100% FREE to you! No one will accept a low offer and we would have spent so much time, money and effort for nothing.
Mobile Home Matadors buys manufactured homes to stay in business by getting offers accepted, and the only way to do that is to give offers youll be happy with! We truly do our best to give you the highest possible offer we can give. Now you know why we have such raving reviews! ????
Our Offers Are Based On Your Several Factors
Cash offers are based on a lot of factors… So to answer the age-old question of “How much can you give us for our mobile home?” Depends on the following:
What is the lot rent in your mobile home park?
How much does your family owe on the mortgage?
How much work does the mobile home need on the inside and outside?
There is a lot that goes into calculating these offers, which we are happy to explain when viewing your mobile home. We have also written an article on how we calculate after repair value (ARV) base on repairs and comps in the area. Cash offers will be lower than what you would receive if you were to wait around months waiting to get top dollar for your home. We help market those homes, as well, but we will not be able to offer $50k for a $25k mobile home if you are looking to sell quickly. We speak with a lot of people who have unrealistic expectations, which is why we do our best to educate people on the dynamics and economics of selling a mobile home, so they can come to the best decision for their family.
We do our absolute best to make offers that are fair for both parties, which is why our offers are usually negotiable. However, it’s not uncommon for people to feel like they are getting less than what they would receive if they were to sell the more traditional route. This may or may not be true based on the condition of your house. If you have a pristine house and you are looking to get top dollar for it we have no problem actively marketing your mobile home for the best price but even this can take months depending on lot rent, location and the type of park you live in. However, if your home isn’t pristine, we can’t offer a high cash offer because there are a lot of things we have to consider on our end. Aside from market conditions we consider what is know in the real estate world as ARV.
Our Offers Are Based On Your Mobile Homes After Repair Market Value!
What is After Repair Market Value or ARV? This simply means we look at what the value of your mobile home would be, completely fixed up. This is just one of the steps we take on our end to formulate your offer!
Well, imagine you have a manufactured home that you want to sell
Now, also imagine your neighbor, has the exact same, identical manufactured house as yours, except for a few upgrades he made say, he upgraded the countertops, removed wood paneling, applied a fresh coat of paint, put a new roof on, and put in hardwood floors.
Now Imagine he sold his manufactured house for $50K.
What Do We Know Now?
Well, we know, that If we make the same upgrades to your house (AFTER we buy it from you of course), bringing the house to a very similar condition as your neighbors house, we would also be able to sell it for $50K.
We know the Market value of your house if we fixed it up (in this case $50K), and we know the cost of repairs/upgrades. We can now make an offer that works for us. If this offer also works for you, great we close and you get your money at closing! As you can see, we make offers based on the market numbers, not based on how desperate you may or may not be to sell. SEND US SOME BASIC DETAILS ABOUT YOUR MOBILE HOME TO GET STARTED!
All you math lovers out there, will appreciate this section. We value honesty and transparency. We have no issues sharing with you how exactly we formulate our offers.
[Your Offer] = [After Repair Value] [Cost Of Repairs] [Our Selling Costs] [Our Minimum Profit]
But in order for you to understand this we need to define some terms.
After Repair Value (ARV): This is what the market value of your house will be AFTER we buy and renovate the house. Yup we are just like your favorite HGTV flipping show.
Cost Of Repairs (COR): This is what our cost will be fixing/updating the house AFTER we purchase it from you.
Our Selling Costs: Although we buy houses without involving agents, we, on the other hand, have to use an agent to sell that house again AFTER we have purchased it from you and fixed it up. So we have to pay agent fees, closing costs, taxes, holding costs, etc. These are all the fees you do NOT have to pay if you sell your house directly to us ;). This is usually 10% all together with the selling price. (Our Selling Cost = 10% x ARV)
Our Minimum Profit: Yeah, this IS a business after all, and we wouldnt be able to stay in business, buy more houses, pay contractors, plumbers etc, if we didnt make some sort of profit. However, we keep this to an absolute minimum so we can present you with the highest possible offer. See, our business model is structured around making many deals with a little profit per deal, and not a few deals with a huge profit per deal. This benefits all.
So what does this formula mean in plain English? Simply this:
The market value of the house (after we fix it up), minus ALL our costs fixing it up (including our profits), will be the offer. How simple is THAT! Congrats, now you are an expert at this! But want to be sure you understand it.
Now We Are Ready To Make You An offer! Now that you know our formula, lets try it with a real life example…
Here are the numbers:
As-Is Value = $40K
ARV (After Repair Value) = $60K
COR (Cost Of Repairs) = $15K
Our Selling Cost = 10% x $60K = $6K
Lets say Our Minimum Profit For This Purchase = $7K
[Your Offer] = [ARV] [COR] [Our Selling Costs] [Our Minimum Profit]
Your Offer = $60K $15K $6K $7K = $32K
Your Offer = $32K
As you can see, we play by the numbers. We do not make offers based on how desperate you may or may not be. We dont base offers on some percentage of the After Repaired Value (that is ludicrous). We simply add the numbers up trying our best to give you the highest possible offer we can make you, to make sure you will be happy, and thus to make sure the contract will be signed so that we can get our next flip going! Makes sense doesnt it!
Analyzing The Offer
So, the house is worth $40K as is, meaning if you listed it with an agent you could sell it for $40K. Yet after ~8% agent fees and closing costs you would probably get about $37.5K for it, after it will be on the market for 4? 5? months! And no one can guarantee the house will actually sell, which means you will be paying lot rent for the foreseeable future.
So now you have to make a decision.
Sell it for a guaranteed sale for $32K in as little as 10-20 days, or a maybe sale and receive $37.5K hopefully within 4 to 5 months.