Why Increasing Your Sarasota Mobile Home Price Brings Down Available Buyers? It is time to sell your mobile home in the greater Sarasota, Florida, area.
While this may be met with some sadness, it can also be met with some excitement for the next chapter of your life and what it will bring you!
We should price the home very high and then come down because we can always lower the price, but not up, right?
This is a common idea. Sellers come to me all the time and tell me that this is their plan: to price their home high in hopes that they will hit a home run with this price, but they are willing to come down later.
Every time I hear this idea, I oppose it because I do not think this is a good plan for selling a mobile home quickly.
The reason why is that most mobile home Buyers are looking for an affordable home.
As we can all agree, the term affordable can mean different amounts of money to different people. What may be affordable to one person may not be affordable to the other.
One thing is for sure, though, the lower you price your home, the more people will find that price affordable.
Sarasota Mobile Home
With that thought in mind, I always suggest starting the pricing of your mobile home as competitively as possible to attract the most attention to your property as quickly as possible.
Before putting a price tag on your mobile home or, better yet, working with a licensed mobile home broker such as The Mobile Home Dealer for guidance in pricing your home, one needs to understand the pros and cons of the price you put on your mobile home.
How are there pros and cons of pricing a mobile home, isn’t the higher the price the better?
While this may be true, in some instances, we here at The Mobile Home Dealer continue to see that this thought can backfire quite a bit on the Seller.
Let us explain.
Mobile homes that are located on leased land in the state of Florida are viewed as and taxed as personal property, not real property.
What this means is that a mobile home that is located within a land-leased mobile home park is sold the exact same way a vehicle is in the state of Florida.
While some lending agencies will lend on these types of homes, most traditional lending agencies will not, and as such, buyers have only a few options for seeking financing.
With the higher and higher prices of single-family real estate and the continued low interest rates offered for traditional mortgages, the need for affordable housing is at an all-time high throughout the Sarasota Florida area.
Single-family homes, also more commonly known as real estate, have the ability to have any traditional lending agency provide financing should it need to be used to fund a property.
Since traditional homes have more lending options and less cash required, comparing financing between the two is hardly a fair comparison.
Most mobile homes on leased land are purchased with cash, not financing.
With the rise in mobile home prices one needs to ask if the Seller is looking to increase the price of their mobile home exponentially further pushing out the availability of cash Buyers while at the same time, financing is limited, is this really a good idea?
Here is an example:
The buyer has $40,000 for their new mobile home in Sarasota, Florida.
The mobile home is worth $40,000 but the Seller is caught up in the real estate craze and charges $80,000 for their mobile home.
The buyer can’t obtain financing because the home is too old for lender requirements and he doesn’t have an additional $40,000 in cash to purchase it.
Buyer purchase inflated-priced single-family homes, use $40,000 as a down payment for a home, gets traditional financing at record-low interest rates and their entire mortgage is less than the lot rent of the mobile home park.
Mobile home park
The seller is stuck paying lot rent with a home that may not be able to finance.
Although this may sound like a far-fetched idea, we here at The Mobile Home Dealer have seen this happen time and time again throughout the first quarter of the year and don’t see it changing anytime soon.
When looking to sell your Sarasota, Florida mobile home, we always suggest pricing your home aggressively in order to bring you the best cash offers as quickly as possible. Getting caught up in the inflated pricing of a mobile home could lead to the Seller holding on to it for several months with the added stress of continuing to pay for a mobile home they do not want.
Increasing the price of your mobile home will usually result in your home sitting on the market longer while the Seller continues to pay lot rent, utilities, taxes, and all other carrying costs associated with owning that property. These continued monthly payments will eat into your profit even if you sell the home for a higher price.
Lastly, when you’ve decided to sell your mobile home, there are a few key things you need to do in order to get the best price possible. First, it’s important to clean and declutter your home. This will make it more appealing to potential buyers and help them visualize themselves living there. Next, you must take care of any necessary repairs or updates. This will help ensure that your home is in good condition and won’t require any immediate work from the new owner. Finally, you’ll need to stage your home for showings. This means creating a warm and inviting space in which potential buyers can picture themselves living. By following these tips, you can sell your mobile home quickly and for top dollar.
We at The Mobile Home Dealer feel it is always best to price your home aggressively from the start and be willing to negotiate with the Buyer when they want to make an offer.
This is Mark Kaiser with The Mobile Home Dealer. We help mobile home Buyers and Sellers improve their lives.
See Also:
- Shopping For An All Ages Mobile Home Park In Sarasota Florida?
- When Will More Mobile Home Parks Be Built In Sarasota Florida?
- Are Traditional Home Loans Available To Buyers Of Mobile Homes In Sarasota Florida?
- What Are The Hidden Costs Of Buying A Sarasota Florida Mobile Home?
- Ready To Sell Your Sarasota Mobile Home? Don’t Forget Your Title!