Archives for February 2022

Sell Now: The Chance of a Decade

Your Home May Be Worth More Than You Think

Are You Thinking of Selling?

Does this scenario seem familiar: you check your home’s value and see it’s worth 50% or more than it was just a few years ago – you’d love to sell but there’s nothing on the market left for you? The housing market has been in a stir this past year and prices have rocketed. Now is the best time possible to sell your home but you simply can’t go homeless! The solution is simple – expand your search and consider better alternatives.

If you’re one of the 3.2 million Americans who’ve recently retired (CNBC, 2021) or are looking to retire then it’s likely that the time has come to downsize. Most people have found themselves over the course of their working lives in places that aren’t ideal retirement spots. Now it’s time for a fresh wave of people to take up professions and move into our cities and suburbs and housing prices reflect it.

Maybe you’ve considered moving to a more retirement-centered locale or perhaps the idea is new to you. Either way, moving can offer you a better quality of life and the profit from that home sale can really grow your retirement nest egg. If you’re close to meeting your retirement goals but aren’t there yet, the sale of your home might propel you financially years ahead – years you get to enjoy doing what you love.

Let’s Look at the Numbers

According to Business Insider the average home value in the US has jumped up 14.9% in the last year, marking the 114^th month in a row that values have increased. The pandemic has thrown gasoline on this fire as homes have been in short supply, resulting in increased prices. A sign that the market is as competitive as ever is the declining number of first-time buyers, who over the last two months have decreased from 33% of the market last year to under 29% now. Simply put, first-time buyers can’t keep up and there is a housing shortage.

This is Where YOU Come In

It’s safe to assume that you are an older, well-established person since you’ve made it to this part of the internet. As a mature, financially savvy person you must see the opportunity in front of you – sell now for a return 50% or greater than you could have ever predicted. You can put it away, increase your monthly payout, put it into a hot new company, or buy that dream boat and go fishing every day. The only thing holding you back is your resolve and having a place lined up.

This is Where WE Come In

Do you know what market is still untapped by this housing boom? Mobile Homes always follow market trends a little later than their counterparts in the suburbs. The largest demographic of mobile homeowners is impervious to market fluctuations so when prices are high mobile home creep up. However, when markets inevitably flounder mobile homes hold stronger than ever because very few owners are liable to loose their source of income, you know, being retired.

Here’s the Plan:

You should do some market research on your home. Look at comparable homes in your area and talk to a realtor to see what you can do to make the most of this market boom. Before even putting the home on the market look into the fabulous resort lifestyle parks in Florida. Brand new mobile homes are half the price of their traditional counterparts and are in modernized, company-run parks that offer amenities equivalent to a resort – read more here! Contact us here to start your hunt for a mobile home so when it’s time to sell there’s a plan and a destination.

Where Our Data is From:

Hartmans, A. (2021, September 25). The housing market is cooling down but not for a good reason: first-time homebuyers have been priced out. Retrieved from Business Insider: https://www.businessinsider.com/housing-market-softening-home-prices-unaffordable-realtors-association-report-2021-9

Kate Dore, C. (2021, May 9). The pandemic drove these Americans into early retirement. What to know before making the leap. Retrieved from CNBC: https://www.cnbc.com/2021/05/09/the-pandemic-drove-these-americans-into-early-retirement.html

Conventional Wisdom is Wrong on This One.

The old status quo of mobile homes losing value over time is no longer the case – here’s why.

In days gone by it was expected that a mobile home was a tradeoff of long-term returns for an obtainable retirement. No longer are the days of 1960s trailers lined up in some desolate lot off a highway! The modern mobile home has finally caught up with its brick-and-mortar counterpart in ability to appreciate in value.

According to the Urban Institute, a D.C.-based think tank, manufactured homes have appreciated an average of 3.4% compared to traditional homes at 3.8%. However, while the appreciation rated have close-in on each other, the number of new mobile homes has declined since the 70s. That’s actually a good thing.

The Market Meeting Demands

Hopefully we’re all acquainted with supply and demand and how they affect pricing. If you’re unfamiliar or want to brush up on this economics basic then go here.

The supply of new mobile homes has dropped annually from the late-seventies to the present day. While that initially seems like bad news, it’s good because it shows the market maturing. Manufactured homes are built better than in the past and thus cost more. Plus, the average buyer now demands a lot more of a mobile home park. Simply, the product has changed from a lower-quality alternative to one on-par. All the while, regular homes are just made more cheaply. If you want to know more about this, read here.

The increase in price has lowered low-income demand which has in-turn gentrified the market. The 55+ community of the modern age is made up of mostly middle-class people from northern climates, retired people who’ve downsized, and working people established in their career.

The lowered supply has had another benefit of bringing supply an demand into a sustainable equilibrium. Nowadays, the prohibitive cost of a new mobile home means buyers are looking at ones already on-site. This, coupled with superb build quality in the last few decades, has meant buyers are more confidant than ever.

The Old Woes are No Longer a Problem – or Never Were in the First Place…

Bad Weather isn’t That Bad Anymore

If you’ve been around long enough the name Hurricane Andrew might stand out. This 1992 hurricane battered Florida among other places and leveled a lot of homes – both mobile and traditional. In response, the State of Florida enacted numerous new building codes that culminated in Florida having the strictest codes by 2002. These codes apply to mobile homes too, and the industry stepped up.

You can read here about how codes have improved home safety, but rest assured knowing that by hurricane Irma in 2017 most mobile homes received minimal or no damage. The codes have worked and a modern mobile home is as sound as ever.

Rent’s Due!

Another woe of mobile homes tossed up by the uninitiated is lot rent. Many homes are situated in parks that own the land and charge a monthly rent for land, utilities, park services, clubhouse membership, etc. What the pop journalists of the internet don’t realize is that lot rent works for you in the long run.

Mobile home parks are competitive… very competitive. They know that if you want to, you can sell your home and buy a new one fast. If you want to move to a different park it’s likely you will, losing your old park a revenue stream to a more affordable one. Hey, this sounds like economic competition!

Indeed, mobile home parks compete with each other to offer the most amenities at the best price, and since you’re living there they can’t cut corners like certain retailers nowadays. Lot rent is always going to be manageable because the 55+ market has a large group of fixed-income individuals. You can’t turn away retirees and run a mobile home park, can you?

Wait, Rent is Behind That Home Appreciation?

The value of your home is positively affected by your community having a rent. Rent directly goes into maintaining your community and adds a barrier of entry to certain uncouth types. Those that don’t have their stuff sorted out, even after 55+ years on this earth, won’t be your neighbor.

The well-managed and well-invested-in communities that charge a lot rent preserve the quality of the environment your home exists in. When future buyers go by your home to check it out, they’ll see manicured landscaping and clean homes and think that’s the place they want to be. As long as you can keep the home together, you won’t be dissatisfied in the long run.

High-Value Communities Around Here

The Florida Gulf Coast down near sunny Sarasota has the best mobile home communities in the nation. The competitive nature of the area combined with a long established presence of the mobile home community means prices are low and quality is high. We’ve hand-picked the communities below for their exceptional resort amenities at a bargain rate. You’re sure to be excited by the value in these parks!