The mobile home park industry is ever-changing. Pre-manufactured homes entered the mainstream market decades ago, and the industry has gained traction in recent years. There is a significant shift in the market with real estate investors and new buyers interested in mobile home parks.
There is never a better time to put your mobile home park on the market than now. But if you sell your mobile park home privately, you should keep things in mind to protect yourself. This article intends to share information that will help protect your asset and the potential mobile home park buyer.
Have Clear Goals In Mind
If you are a mobile park owner planning to put your property out on the market, there may be a million things on your mind. Before enlisting your mobile home park, gather your thoughts. Outline what your goals are.
You should have a sound strategy that can be accomplished by answering a few questions. Having this strategy can allow you to improve relations with potential buyers and brokers.
- Why are you selling your property?
- What is your expected rate?
- How much are you willing to negotiate?
- What are your plans for the cash?
- How should the cash be received? As a lump sum or stream of installment amounts monthly.
Research Your Market
Real estate markets are one of the most volatile markets around. The changes in other market spaces will reflect on the real estate market, which will also affect the mobile home industry.
Hence, if you are planning to enlist your mobile home park, having a clear idea of the market is crucial to get your money’s worth. Enlisting your property at the wrong time, not correctly valuing your mobile home park, or even overvaluing your property are all grave mistakes that will cost you dearly.
If your home market has limited options with more buyers, it is called a seller’s market. A seller’s market is excellent for you as demand outweighs supply. There will be more demand for your property which will inadvertently increase its value. Not knowing your market and market trends will cause you harm.
While researching markets, you gained a general idea of the market. Now you know if the time is right or if the market is favorable to the buyer or seller.
But what if I tell you that more than having a general idea is needed to pull off a successful sale?
Yup. Who knew real estate was this hard?
It is essential to research the market and recent selling patterns. Pull up data on recent mobile park home sales. See if properties similar to yours were sold recently within three months, six months, or a year.
Be aware of how much the property was sold for, how long it was in the market and how many buyers were interested.
A comparable market analysis of recent times will allow you to provide a clear estimated value adjusted to inflation rates.
Knowing Your Potential Buyers
Now that you know about the market, the next step is understanding your possible buyers. This will protect you from fraudulent practices.
Different types of buyers include cash buyers, new bank loan buyers, and payment buyers. Cash buyers are kings in the real estate markets. In most cases, cash buyers will be using up some of their savings to purchase the mobile home park or might be downsizing. You need to aim for a cash buyer for your property as they are a low-risk option.
If you are going with a loan buyer, also called a financeable bank buyer, they will be in the process of obtaining a bank loan or financial aid for their purchase. When selling to a loan buyer, always check the preapproval letter from the lender. This is a document from the lender that the buyer is approved to borrow x amount of money.
No matter your transaction, always have proper documentation every step of the way. Make sure your finances are in order. Good books and records for your home will also increase the salability of your mobile home park. Keep documents of your tax returns, logs, expenses, and income.
When it comes to sales, check the bank’s pre-approval letter if you are selling to a loan buyer. If you are selling to a cash buyer, asking for proof of capital is always a good idea.
Once the terms of sales are agreed upon, creating a purchase and sale agreement is highly recommended. This agreement should contain all the terms and conditions of the sale and should be signed by both the buyer and the seller.
Even if you are selling your mobile home park privately without using a broker or realtor as a middleman, it is highly advisable to use a closing company to close the deal. A good closing company will have competent lawyers who will keep in touch and sort out all the legal; documents needed for the transaction. This will allow you to be risk-free in the future and save you from hours of legal jargon.
Get Background Info On Your Buyers
The internet is a magical place. It really is. But it is also a breeding ground for scammers and all sorts of shady people. If you are selling your property online privately, always make sure to run background information checks on potential buyers. This will ensure your protection.
There are resources that will allow you to check information on individuals to see if they have outstanding warrants, if they are convicts and more. Ensure you are careful and take necessary precautions before meeting an online buyer in person.
In the current market, if you have the right property properly maintained, plenty of buyers are around. More and more people are attracted to the convenience and freedom of mobile home parks, and the market is ripe.
Always be aware of high-risk buyers and listen to market trends. This will allow you to significantly reduce the risks of selling your property privately. With the right property, time, valuation, and advertisement, selling your mobile home park will be a walk in the park.