Sierra Circle is one of the very few Mobile Home Parks where you purchase the space as well as the home. There is no monthly rent. The HOA is a minimal $175 per month, and the lots average about .15 acres, so there is about as much space between the homes as you find on a typical city lot. I have always like this neighborhood, but prices have risen dramatically this year, so when I saw this three bedroom two bathroom constructed in 2000 listed for $195,000 I was not surprised. However, when I inspected the unit I was disappointed. The home shows poorly and has one of the issues that cause me to turn away from many listings, which is pet odor. Pet odor is problematic because the smell often times goes beyond the carpets and right into the sub-floor. You can replace carpet and paint the home, and sometimes you will still smell the pet odor. Until you rip up the carpets and look for staining in the sub-floor you don’t know how extensive the damage is going to be. Instead of being $5000 for new carpets, it might be $15,000 and require new sub-floor as well.
I am using the new IDX connect: Copy this MLS number then click on the link, and paste the number into the box. Your browser will take you to the property profile and MLS pictures for this property. You will see a map at the top of the page, scroll down for information, click on the pictures to see a slide show.
[idx-platinum-system-link id=”27388-17243″ title=”Listing ID” ]
Manufactured homes are a hot commodity right now. Spec builders are putting them up and homes less than ten years old are selling at prices that have narrowed the gap between to stick built homes and manufactured home. The lack of stick built home inventory means buyers don’t have much choice. A year ago a manufactured home in the condition and with the features and amenities of this home and in this neighborhood, would have been priced $50,000 under what a stick built home in the same condition would have sold for. In today’s market that difference has narrowed to about $30,000. The calculus is changing for the differential in pricing between manufactured and stick built homes.
We have to keep watching it to see what happens next.
Spec builders and investors take note. This is a flat lot, with no landscaping, and very little setback from the street, but the builder went right at, put in 2 bedroom and 2 bathroom home with a few nice upgrades, and now it’s listed for $310,000. This is an important bell weather of buyer appetite for manufactured homes. Nobody built manufactured spec homes in the past, this is an entirely new entry in our market place. In the past, a lot like this one would have got a small stick built house. The profitability of that kind of construction is simply not there any more so we see the shift to spec builders installing manufactured homes. I will be counting the days till it sells and watch the price they get for it.
Tenant Occupied, so I always am respectful of the tenants personal space. This home is very typical of the manufactured homes between 10 and 20 years old. All the standard features.
We hardly see any homes, manufactures or otherwise, for under $300,000 with more than 3 acres, so a home with 5 acres that is in move-in ready condition and would qualify for conventional financing is a pretty rare offering. But Here is the question: is it a good deal? “Good” depends on what you are looking for. The land is steep and brushy. The owners at one time had goats, and so there is some fencing, but “goats” is just about all this property is good for. It is too steep to have much other functional purpose. The home have great views, but it hard to appreciate them from the narrow front porch that looks out over the mountain. At the rear of the house, you look right into a steep hill. There is a 16 step staircase that leads to the front door, and even the side door is 6 stairs up from the parking area. The parking area for a car is not flat, but is sloped just a little less than the surrounding area. It would be hard to place a garage on this parking area. The boundaries of the property contour to the existing roads, which is good, but I don’t think the home is going to sell as quickly as you might expect based on the property profile.
Ok, here is a link to a post I made regarding the comparison in value between a completely rehabilitated manufactured home and a manufactured home where the home needed to be removed and replaced with a new manufactured because the existing home was thrashed. By comparing the two properties, we get at the logic of contractor/investor who purchased the fixer, in getting an idea of what the new home will sell for when the rehabilitation project is complete.
12905 Shady Creek and fully rehabilitated manufactured home for $284,000, Compare that to fixer we looked at in June that sold for $112,500.
Today we have a different data point- This is an older manufactured home on a very nice lot in Grass Valley, located at 10890 Yukon Way. This home, a 1990 2 bedroom and 2 bathroom home is a cosmetic fixer, needs a few touches, but it is clean and move in ready. This home has lots of similarities to the other manufactured homes, except it is a 2 bedroom not a three bedroom and it is closer to town, but what this home really lacks is the upgrades that come with the rehabilitation of one of these homes. So here is a home, not a wreck, but also with systems and fixtures that are pushing 30 years old.
Here is the video I shot in June from 22752 Pleasant Valley Road, a gutted out bank owned manufactured home in North San Juan that was listed for $91,500 on 5/28/17. It went pending just a week later, and closed escrow at the end of June for $112,500, or 12% over the list price! That gives a very clear indication of the land value, the value of the well, septic, foundation, and permits, because the home itself needed to be scraped and completely rebuilt. I drove by the other day and saw a full crew of contractors working on it. This one clearly was somebody’s summer investment project. So, home much do you think this house will sell for?
To get an answer to that question lets look at a new listing. Todays listing is active in the inventory, a fully cleaned up and ready to go manufactured home, 12905 Shady Creek. It is what the investor working on the Pleasant Valley home is aiming for. We don’t know what this home started out looking like, it might not have been as bad as the on Pleasant Valley, but the remodel here is complete, with new cosmetic improvements, and clear evidence that structural and pest repairs have been made in a professional looking fashion.
Here is the basic math- Pleasant Valley sold for $112K Shady Creek is listed for $284K. The difference is $172K. If the investor on Pleasant Valley buys a brand new manufactured, and installs it on the existing foundation, say that costs $100K. Add on 2 car detached garage, another $30,000. Sell this finished product for $282K, and that leaves a nice $40,000 profit. That’s the basic math, and that’s why there were multiple offers on that old manufactured that was not habitable.
Another home priced under $200,000.
I have taken you to a couple of homes that were basically “land value only” Here is a home where there is almost no land value, and all the value is in the home itself. By comparing the value of the home to the value of the land we can start to get a picture of the value of infrastructure and development in the entry level market. Compare this property to 22752 Pleasant Valley, which is also a manufactured home, but the home is ruined, and all the value is in the land.