How Does Sarasota Real Estate Craze Affect Mobile Home Sales? As of mid-2022, the average price of a single-family house in Florida is around $ 382,000 while the average price of used mobile homes goes anywhere between $10,000 and $25,000.
This means that the average price of a house in the Florida real estate market is actually a little lower than the national average price of a house of $ 385,000, while the used mobile home is around $47,000 and can go far higher or far lower. While this makes the property in Florida a large investment, the cost of living is also incredibly attractive. This makes Florida the perfect place to invest and live!
While property prices have increased in recent years, Florida’s real estate market, especially in the greater Sarasota area, does not show signs of deceleration in the short term. Whether you are looking to invest in a rental property, a vacation house, or move to Florida completely, now is the best time to invest.
As anyone can tell you, single-family homes are flying off the shelves in record numbers here on the Gulf Coast of Florida.
Currently, there is a housing buzz going around this area of the state that I have never seen in all of my years living down in the Sunshine State!
It is very common right now to see homes being sold before the realtor is even putting a sign in the front yard, many of these homes are being sold for more money than what they are actually being appraised for!
With interest rates and inventory low, it is fair to say that this house craze will continue for several months if not a few more years.
With this understanding, are mobile homes on leased land throughout the Sarasota area experiencing the same sales climate as single-family homes?
Before we dive into that question, let’s do a quick review of what a mobile home on leased land is and what a mobile home on leased land is not.
Mobile homes on leased land, where you own the home and lease out the land that it resides on through a monthly fee called lot rent, are viewed and taxed as personal property in the state of Florida, not real estate.
What this means is that the homes are viewed as vehicles and they are actually titled at the Department of Motor Vehicles as they do not carry a deed since the land is not included with the sale, but it does include a title.
Understanding all of this, it is important to realize that traditional mortgages do not usually apply to mobile homes on leased land, as you are technically not owning real estate.
The reason we provide this brief overview is that the interest rates associated with traditional mortgages do not apply here since the home on leased land is usually unable to obtain one.
Financing for mobile homes can be hard to come by if that is needed in your situation.
However, there are ways to obtain financing through private money lenders, Seller financing, or private loans.
Much of the real estate craze is based on low interest rates, which now we know do not help or hurt the mobile home industry on leased land, simply because they usually do not qualify for them in the first place.
Low inventory is another reason why single-family homes are being sold so fast because there are very few homes available.
Currently, there exists a slight dip in inventory right now in the Sarasota area for mobile homes on leased land, however, there still is plenty to choose from at the current time.
What we have seen is that mobile homes on leased land are selling just as fast as they always have, if the home is priced right and marketed correctly.
What we have not seen, though, is Buyers paying more than what a mobile home is worth as is the case with traditional real estate.
So here is the answer as to are mobile homes on leased land are being sold as fast as single-family real estate.
The answer, in our opinion, is yes, absolutely.
However, one needs to know that it is not realistic to sell your mobile home for more than what it is worth at this time.
A mobile home on leased land that is priced right and marketed correctly will move so fast, it’ll make your head spin!
Why invest in mobile homes?
Mobile homes are one of the safest investments you can do. While stocks and bonds can also be relatively safe investments, they have the potential to reduce their value overnight. In this way, mobile home investment is considered a physical asset that still provides utility even if the price fluctuates over time.
While stocks can sometimes give you dividends, you can obtain a stable passive income from mobile homes. This allows you to create an additional source of income while maintaining the relatively safe main investment.
There are also tons of exemptions and fiscal deductions that can help investment in a rental mobile home more affordable for you.
Mobile home market predictions for 2023 in Florida
Economists from all over the country agree that we are currently, still in a recession. Economic activity has slowed down throughout the country and properties are expected to fall slightly during the next year. However, economists also agree that Florida is completely exempt from this.
This is because the prices of properties, including mobile homes in Florida’s major cities including Sarasota, have continued to grow even though the general economy has been declining. Many attribute this to the fact that people still go to Florida to take advantage of tax exemptions and the lowest cost of living. In this way, the demand for mobile homes in the Sarasota Florida area has not slowed down at all.
Since moving to Florida entails real financial benefits, many expect the real mobile home housing market in Florida to be higher which makes it the perfect moment to invest in mobile homes.
This is Mark Kaiser with the Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
See Also:
- How To NOT Get Your Sarasota Mobile Home Sold Episode #3
- How To NOT Get Your Sarasota Mobile Home Sold #4
- How To Get Insurance For Your Mobile Home
- How To Close On A Sarasota Mobile Home Virtually
- How To NOT Sell Your Mobile Home-Episode 5