Many Mobile Home owners at some point realize that their Mobile Home is getting old and out-dated. Then they ask themselves: should they repair or remodel the old unit, or should they just completely replace it?
The first consideration would be how much work does the existing unit need? A lot or a little?
The second consideration is what do you want to change about your existing unit? Add more space? Add a room? Re-arrange the layout? Or does it just need some paint and some new fixtures? Is the structure safe and sound?
The third consideration, and most important one, is what can you afford? A lot or a little?
The fourth and final consideration is how long you intend to live there? A short time or a long time?
Ok, here is the scoop: Never expect to put money into remodeling or fixing up a used, older Mobile Home and get that money out of it, ever!
Yes, if you took an old one and put $20,000 into it it would be worth more than it was before, but absolutely not what you put into it – you lose money on all remodeling or repairs.
So, now consider your answers to the questions (considerations) above:
How long will you be in the home? What is your budget? What do you want to change? How much work would it take to make it what you want (considering money, time, effort)?
If you will be in the home for a very long time, and you can afford it, then seriously consider replacing the home. This is mostly due to the way new homes are built compared to older mobile homes. The new ones just last longer and are built better. They are also much nicer and will appreciate better (depreciate less) when compared to a remodeled older home.
If your budget allows it, replace the home – no question about it. One consideration is the market value of an older mobile home installed in a space vs. a new manufactured home installed. The new home may sell quicker and for a much higher price than the cost of installing it plus the land (space) value.
Here is an example of this market value comparison:
Suppose you owned an older mobile home, installed in a nice park, free and clear of any mortgages or liens. Now, if you took $100,000.00 and completely remodeled the old home down to the studs and made it “brand new” OR you spent the same $100,000.00 and installed a new home – the new home would sell for more on the open market 9 times out of 10.
Continuing on, If you only want to change a few things in your existing home, but are happy with the rest of it, and you are not going to sell or need any equity out of your home soon, then just fix up the small things.
If you think that just a few things need changing, and you start remodeling one part of the home, then it could be that you then think that another part will need remodeling too. Or, in the middle of a small remodel job you may discover that there is more damage in the home and that might lead to more work. At this point consider stopping and replacing the home completely.
Remember, we don’t sell homes, so we are not biased.