Hidden Costs of Buying a Mobile Home – Things To Consider

Mobile homes, a new way of living, are prefabricated structures built in factories and transported to the desired location. They are reliable for those who want to own a home without spending too much money or time on construction. However, buying a mobile home is complex, and there are hidden costs of buying a mobile home.

There are two common types of mobile homes: single-wide and double-wide. Single-wide mobile homes are narrower and have one section, while double-wide mobile homes are more expansive and have two areas joined together.

The size and layout of the mobile home affect its price, transportation cost, installation cost, and resale value. Generally, double-wide mobile homes are more expensive but more spacious and comfortable than single-wide ones.

Keep reading to explore more about buying a mobile home wisely.

The Cheapest Way to Buy a Mobile Home

If you want to limit your budget on a mobile home, consider buying a used one. Used mobile homes can be found online, through dealers, or through private sellers. However, you must be careful and thoroughly inspect the mobile home before buying it.

Look for signs of water damage, mould, rust, cracks, leaks, electrical problems, plumbing issues, pests, and other defects that may affect its quality and safety. You must also check the mobile home’s title and ownership history and ensure it is free of liens, taxes, and other debts.

The Cost of Relocating a Mobile Home

The most significant advantage of mobile homes is that they are moveable. However, this also comes with a cost. Depending on the distance, the size, the condition, and the regulations of the mobile home, relocating it can cost up to $20,000.

You also keep the cost of permits, inspections, utilities, site preparation, foundation, skirting, stairs, etc., aside. Moreover, moving a mobile home can damage its structure and reduce its lifespan.

Pros and Cons of Using a Mobile Home

Buying a mobile home has its pros and cons. Some of the pros are:

Affordability

Mobile homes are cheaper than traditional homes and can be financed with lower interest rates and down payments.

Flexibility

Mobile homes can be customised to suit your preferences and needs.

Convenience

Mobile homes are ready-made and can be delivered and installed quickly. You don’t have to deal with contractors, architects, or builders.

Community

Mobile homes are often located in parks or communities that offer residents amenities, services, and social activities.

Some of the cons are:

Depreciation

Mobile homes lose value over time, unlike traditional homes that appreciate. It can affect your equity and resale potential.

Durability

Mobile homes are more sturdy and durable than traditional homes and may suffer from wear and tear, weather damage, or transportation damage.

Restrictions

Mobile homes are subject to zoning, building, and safety regulations that may limit your options and choices. You may also have to pay fees, taxes, or rent to the park or community where you place your mobile home.

Stigma

Mobile homes are sometimes associated with negative stereotypes or prejudices that may affect your social status or self-esteem.

Hidden Costs of Buying a Mobile Home

Besides the purchase price of the mobile home, there are some hidden costs of buying a mobile home.

Sales Tax

Depending on the laws, you may have to pay sales tax on the mobile home, ranging from 0% to 10% of the purchase price.

Delivery Fee

It is the fee the manufacturer or dealer charges for transporting the mobile home from the factory to your location. It can vary depending on the distance, size, and weight of the mobile home.

Installation Fee

It is the fee the installer charges for setting up the mobile home on your site. It can include the cost of levelling, anchoring, blocking, plumbing, electrical, gas, and other connections. It can range from $1,000 to $5,000 or more.

Inspection Fee

The inspection fee is the fee charged by the inspector for checking the mobile home for compliance with the codes and standards of the state and local authorities. It can range from $100 to $500 or more.

Permit Fee

It is the fee the state and local authorities charge for issuing the permits and licenses required for placing and occupying the mobile home. It can vary depending on the mobile home’s location, size, and type.

How to Buy a Mobile Home?

Here are some steps to follow while buying a mobile home:

Determine Your Budget

You need to know the upper budget limit to spend on buying a mobile home. It would help if you also considered your lifestyle, preferences, and goals. For example, do you want a new or used mobile home? A single-wide or double-wide? A permanent or temporary location? A park or private land?

Research Your Options

You need to explore the different types of mobile homes available and compare their features, prices, and quality. Find out where you can buy online, through dealers, or private sellers. You should also check the reputation and reviews of the sellers and manufacturers.

Inspect and Negotiate

Before buying a mobile home, thoroughly inspect it. Checking for flaws, damage, or problems that would lower its worth would be beneficial. It would help if you also requested any accompanying papers, warranties, or guarantees.

Arrange Financing and Closing

You must secure financing for your mobile home purchase. You can either pay cash or apply for a loan. Compare the interest rates, fees, and terms and choose the best suits you.

Conclusion

A mobile home is suitable for people who want to own a home without spending too much money or time. However, buying a mobile home also comes with many hidden costs and challenges that you must be aware of and prepared for.

You need to do your research, inspection, negotiation, financing, and closing carefully and wisely. You also need to maintain your mobile home properly and regularly.

FAQs

Do Mobile Homes Depreciate?

Mobile homes tend to depreciate over time, unlike traditional homes that appreciate.

Can You Save Money Living in a Mobile Home?

Yes, you can save money living in a mobile home compared to living in a traditional home. Mobile homes are cheaper to buy and finance than conventional homes.