How to Sell a Mobile Home That Rolls in a Nice Profit
Living in your mobile home has awarded you a cozy, modest lifestyle, either as a snowbird retreat to escape the icy winters, a summer getaway to beat the heat, or as a primary residence to enable you to put money in the bank. Still, now you may be ready to move on and are wondering how to sell your mobile home.
Whatever the reason, you need to be savvy and strategic in your approach to get the best price for your investment. Follow these expert tips to increase the probability of a successful sale.
1. Know the difference between personal and real property when selling a mobile home
Many mobile homes are considered personal property (the legal term for this type of property is “chattel”) rather than real property, meaning they’re sold a bit differently from a typical house.
A mobile home may be considered real property if you own the land it sits on (depending on the state), and it’s attached to that land — usually, that means it needs a foundation, though some states have a pretty loose definition of “foundation.”
If your mobile home doesn’t fit the above criteria, it’s likely considered personal property. This means the home is treated as a movable asset, akin to an automobile.
When you sell a mobile home as personal property, you’ll transfer the title over to the new owner in the same way you would sell a car, while the land remains with its owner.
Collect these documents to sell your mobile home as personal property
When selling a mobile home as personal property you’ll need the following documents:
Transfer of Title: You’ll sign your existing title over to the buyer and apply for a transfer of title. If you’ve lost it, you’ll need to order a replacement or duplicate title from the department of motor vehicles (DMV) or tax collector.
Bill of sale: Your municipality and the buyer’s lender typically require a bill of sale to sell a mobile home.
Notarized transfer of title: Lenders usually require a notarized title transfer with the seller and buyer present at the time of signing. Check with your DMV or tax collector for their requirements.
Taxes: You’ll need to provide evidence that your taxes are paid in full when you sell your mobile home. Some states like Georgia require owners to pay a personal property tax on manufactured homes. Other states require an annual registration fee for personal property, while others require a sales tax or use tax at the time of sale or resale.
Certificate of Occupancy (CO): You’ll need to provide a Certificate of Occupancy, which is proof your home complies with relevant regulations. The CO includes a fire safety inspection certifying that electrical wiring meets all fire codes.
If you own the land, consider converting to real property
Unlike personal property, real property means your manufactured home is affixed to land and not a movable asset. This classification offers various benefits, including a combined tax bill for home and land, a higher resale value, and more financing options.
You’ll need the following documents when converting your mobile home to real property:
The original HCD registration card;
The most recent HCD certificate of title;
Your decal number; and
Serial number or vehicle identification number (VIN) documentation for each section of the home.
When you own the land where it’s affixed, the land deed and the mobile home title must both be in your name.
To legally classify your mobile home as real property, you need to retire the DMV-issued title (this process is known as “de-titling”) and obtain a warranty deed for the home and land.
The cost for de-titling depends on where you live. South Carolina, for example, “requires a filing fee between $500 to $700,” reports Sheila Newton, a veteran real estate agent expert serving Anderson, South Carolina, who sells single-family residences and mobile homes.
2. Get a pre-listing appraisal to catch installation and inspection issues early
As the name suggests, a pre-listing appraisal is conducted before listing by gathering data to calculate a home’s value. “An appraiser examines the area’s topography and locates the HUD Data Plate/Compliance Certificate to verify the home conforms to HUD’s Model Manufactured Home Installation Standards,” says Mason Spurgeon, a seasoned and certified general real estate appraiser serving Missouri, Illinois, and Iowa.
Installation standards stipulate perimeter support pier locations, how homes should be anchored, and other legal requirements for HVAC, ductwork, electrical, plumbing, and drainage systems.
Home Inspection
Appraisers also conduct home inspections, which can help sellers identify maintenance issues that could come up later and void a contract contingent on a buyer’s home inspection.
A pre-listing inspection can help point out any red flags, such as faulty wiring, plumbing leaks, and termites. “People mistakenly think mobile homes cannot have termites. They can,” Newton says.
