Tips for Buying a Manufactured Home
Buying a manufactured home is exciting and life-changing! There are so many options to choose from. People looking at moving companies in Maryland, hoping to buy this kind of home will have so many decisions to make. Some of your choices will include picking the perfect home builder and the ideal floor plan. You have your favorite materials and style to pick and find the perfect dealer. And the list goes on: financing, insurance, and installation of the home. We’ve collected our most effective tips for buying a manufactured home. Our list below should help buyers with making the whole process a little easier.
Investigate the margin when buying manufactured home
Be very careful when researching dealers. Commissioned salespeople who don’t have to answer to licensing requirements may lead you on with overpromises and false information. Many people working at manufactured home dealerships used to work in car sales. If they look like a used car dealer and talk like a former car dealer, chances are they are one.
The average commission for a manufactured home is about $11,000 per home. The salesperson usually gets 20% of the commission. They can make up to $2,000 commission on a new manufactured home! This gives them great motivation to sell a home by all means necessary. However, now that we’ve covered the warning signs, there are a lot of reputable manufactured home salespeople working in respectable dealerships. Find one of those dealerships and buy the perfect home for you.
Know what you want when buying a new manufactured home
If you set your target price in stone and investigate every financing option before you go to a dealer, you’ll have a good strategy against high-pressure sales tactics. Do a thorough online search and use as many different sources as possible. Decide what manufacturer you like best together with your favorite floor plan and materials.
Be honest to yourself and set realistic expectations about your dream home
You will get a home you are able to pay for in the world of manufactured homes. You cannot expect to pay $50,000 for a double wide and get the same features and materials as you would in a $150,000.00 home. Don’t be upset or dissatisfied if your end result has cheaper flooring materials, or thinner carpet when you only paid $34,900.00 for a brand new 1200 square foot double wide. However, never compromise on the end result. It will be your home for a long time. Every owner should completely and 100% happy, but expectations must align with the price.
Look at the competition
- Never settle on a first home or a dealer you like. You should visit at least 3 lots. Also make sure that these 3 lots are true competitors, not just a sister brand owned by the same company. For example, one company can operate under more than 10 different brands.
- Although you may have found your favorite manufacturer, you may find a better price at another one. Read online reviews and check for customer experiences. Getting the best price-point for the characteristics you want goes side by side with great after sale customer service. Get good references from the company’s past clients.
Compare your options when buying a manufactured home
Even if your heart is really set on buying a manufactured home, it never hurts to know all your options. Check the prices of different housing options in your area such as condos, houses, and apartments. This could impact your decision because real estate markets can fluctuate and you may catch a better deal. You never know what can happen and you may need to move last minute. Taking the lot rents and other monthly costs into consideration could potentially change your mind by giving you a better perspective of your total monthly costs. Compare your options just because. Better safe than sorry.
Evaluate your finances precisely and honestly
Evaluate all costs of homeownership precisely. This includes land rental or purchase, insurance, taxes, etc. Never unnecessarily combine those financing expenses with your home purchase loan. Interest rates on manufactured home loans which are not tied to land are in fact certain percentage points higher than conventional mortgage loans.
Do not share your personal information with every dealer who needs to run your credit. When several dealers check your credit it can, in fact, reduce your score. Instead, ask them to give you an estimate based on the credit information you provide them with.
Where will you place your new manufactured home?
Think carefully about where you should place your manufactured house. Placing your home in a rental community lowers the chances of you getting equity from your investment.
Rental communities are susceptible to rent increases, which can change your monthly budget unexpectedly. Long distance movers Baltimore say that when you own the land, you reduce your financing costs and at the same time increase the stability of your ownership.
Factory dealers may be a better Choice for you
There are two types of manufactured home dealerships – independent and factory. Independent dealers have a policy of selling multiple brands on their lot. Factory dealerships on the other hand only sell one brand. This overrides the legal catch that prohibits manufactured home builders from offering homes to the public without a middle man.
Customers’ experience in the manufactured home market has shown that people who purchased their house directly from the factory dealer had hardly any problems after the sale. As opposed to those that were buying a manufactured home from an independent dealer. Then you can start packing and preparing your kids for the move. Try this option, at the end of the day, it doesn’t hurt to visit the factory that will manufacture your home.
Never sign any documents you do not completely understand. Read the fine print very carefully. Do not rely on interpretations your salesperson will make about these contracts. If you do not understand something, bring the documents to someone you trust. A purchase contract is a legally binding document so don’t be afraid to ask for professional help if you need it!