Buying and Selling Manufactured Homes in Florida | Expert Tips and Insights
With its temperate climate, beautiful beaches, and lack of state income taxes, Florida has long been a popular choice for both young and old movers. The state offers a high quality of life with a relatively low cost of living, attracting a variety of communities, including traditional retirement communities and mobile home havens.
In the Sunshine State, residents can live inland or on the coastline, with a growing number of people choosing to live in mobile home communities or buying prefabricated homes for their land. But what should you know about buying and selling manufactured homes and mobile homes in Florida? Is there a difference between buying a manufactured home and land or an existing manufactured home on land and buying a home in a rental community? Can a real estate agent help you buy or sell a manufactured home? Are there any limitations for a real estate agent selling manufactured or mobile homes in Florida? What about financing? Can you get a loan for a manufactured home or mobile home? Are there any limitations on financing? Let’s dive in and find out.
Buying a Manufactured Home in Florida
Florida has some of the highest numbers for mobile home communities of any state. Mobile homes’ affordability and flexibility are attractive to many homeowners. Some areas of Florida permit mobile or modular homes on standard parcels, making it as easy as buying a residential home lot, either in a town or rural areas of Florida, and moving your mobile home onto it. However, some counties restrict where you can plant mobile homes, usually limiting them to rural or agricultural areas.
Factory-Built Homes are usually as safe as traditional home types from hurricanes and inclement weather, according to the Florida Manufactured Housing Association. In Florida, mobile homes are able to be permanently affixed to a piece of land, thus changing the status of the home from personal property to real property.
The following are a few of the more common items buyers should consider when buying manufactured or mobile homes in this state.
- Understanding the Legal Landscape: Florida has specific laws pertaining to mobile homes that potential buyers need to familiarize themselves with. For instance, every new mobile home must carry a warranty of at least one year. The manufacturer or dealer is required to correct any substantial defects in materials or work quality that may appear within that first year of your ownership and must do so within 30 days of receipt of written notification of the claim. Navigating these laws can be daunting for those unfamiliar with legal jargon.
- Florida’s Natural Conditions: Florida’s weather conditions pose another challenge. The state is known for its hurricanes, which can significantly threaten any home, including manufactured ones. While manufactured homes have stood up very well to hurricane-force winds since HUD updated its wind safety standards in 1994 following Hurricane Andrew, potential buyers still need to consider the quality of construction and installation to ensure their homes can withstand such conditions.
- Financing and Insurance: Securing financing for a manufactured home can be more complicated than for a traditional home. While about 65% of loans for manufactured homes in Florida are Land/Home loans, the rest are chattel loans for the purchase of expensive personal property. Understanding these different types of loans and qualifying for them can be a hurdle for many potential buyers. Similarly, while the state of Florida does not require mobile home insurance, it’s still crucial to protect your investment. Moreover, your lender may require insurance if you’re taking out a loan. Finding an insurance provider offering comprehensive coverage for manufactured homes at a reasonable rate can be challenging.
- Site Preparation: Site preparation can be a significant challenge depending on where you plan to place your manufactured home. If you’re moving into an existing lot in a park, there may be little or nothing to do. However, if you’re putting the home on private property, you might need to clear trees, level the site, pour a foundation, add a septic system, and more. This process can be time-consuming and costly.
- Market Volatility: The real estate market in Florida can be volatile, with prices fluctuating based on various factors such as location, community amenities, and the overall economy. This volatility can make it difficult for potential buyers to find a manufactured home within their budget that meets their needs.
Is Buying a Mobile Home in Florida a Good Investment?
A recent report found mobile home prices increased an average of 34.6% from 2016 to 2021. This price increase is slightly lower than the increase in single-family homes, showing that mobile homes don’t lose value as much as mobile homes did in the 70s.
And many corporate investors are scooping up mobile home communities across the nation as an investment asset. Unfortunately, these corporate entities are also increasing the rent on land for these communities. So it would be wise to own the land you place your mobile home on to avoid corporate shenanigans.
When is the Most Ideal Time to Buy a Mobile Home in Florida?
The short answer: pick a hot day in the summer. Because Florida is one of the fastest-growing states in the US, competition for new or pre-owned mobile homes is fierce. Picking a hot summer day is your best time to buy because many Floridians are snowbirds, so they won’t be in the state to increase competition.
Pricing is also more affordable, and there are fewer people looking to buy on a hot day in the summer. You’ll get more attention from agents and should find more homes on the market.
Selling a Manufactured Home in Florida
Selling a mobile home in Florida can be a bit more complicated than selling a traditional home due to the unique nature of mobile homes. However, it can be a smooth and profitable process with the right knowledge and resources. The following are a few of the more common issues sellers may face when selling a manufactured or mobile home in this state.
- Market Perception: Manufactured homes are often perceived as lower quality than traditional homes, which can make them harder to sell. This perception, while changing, still exists among some potential buyers.
- Financing Challenges: Financing for manufactured homes can be more difficult to secure. Some lenders view these homes as a higher risk, which can lead to higher interest rates and more stringent lending criteria.
- Depreciation: Unlike traditional homes, manufactured homes may depreciate in value over time, similar to vehicles. This can make them less attractive to buyers who view home purchases as an investment.
- Land Ownership: If the manufactured home is not sold with the land it sits on, this can create complications. Buyers may be less inclined to purchase a home where they have to pay lot rent or move the home after purchase.
- Insurance Issues: Recent changes in homeowners insurance in Florida, such as stricter requirements for roofs, age, and replacement cost clauses from lenders, can add to the difficulty of buying and selling manufactured homes. High insurance costs can deter potential buyers.
- Regulatory Issues: There can be specific laws and regulations governing the sale of manufactured homes in Florida that don’t apply to traditional homes. Navigating these can be a challenge for sellers.
- Age of the Home: Older mobile homes can be harder to sell due to issues with their condition and the fact that they may not meet current safety standards.
Can a Real Estate Agent Help Me Sell a Manufactured Home?
Absolutely! Real estate agents can be a valuable asset when selling a manufactured home. They have the knowledge and experience to market the home effectively, negotiate the best price, and navigate the legalities of the sale. However, it’s important to note that not all real estate agents are familiar with the intricacies of selling manufactured homes. Finding an agent with experience in this specific market is crucial.
Are There Any Limitations for a Real Estate Agent Selling Manufactured or Mobile Homes in Florida?
In Florida, real estate agents can sell mobile homes that are considered “real property,” meaning the home is permanently affixed to land owned by the homeowner. A separate license is required to sell the home if the mobile home is considered personal property (not affixed to the land). This is because the Florida Department of Motor Vehicles, not the Real Estate Commission, regulates the sale of personal property mobile homes.
What About Financing? Can I Get a Loan for a Manufactured Home or Mobile Home?
Yes, you can get a loan for a manufactured home or mobile home. However, financing for these homes can be more complex than traditional homes. Manufactured homes can be financed as personal property, even if the home is attached to the land. However, some lenders may hesitate to finance manufactured homes or charge higher interest rates.
Are There Any Limitations on Financing?
There can be limitations on financing for manufactured homes. For instance, some lenders won’t finance older manufactured homes or homes that aren’t on a permanent foundation. Government-backed loan programs like FHA, VA, and USDA loans also have specific requirements for manufactured homes to be eligible for financing.
How Much is a Down Payment on a Mobile Home in Florida?
Lenders typically want 5% down when you finance a mobile home, but they may also require collateral depending on the loan. The percentage down will depend on the lender you choose. Most will want between 3.5% to 10% as a down payment. If you want a conventional loan, you’ll be required to pay up to 20% down.
Buying and selling manufactured homes in Florida can be a great opportunity, but it’s important to understand the unique aspects of this type of real estate. Whether you’re considering living in a mobile home community or buying a manufactured home on your own land, it’s crucial to understand Florida’s laws, financing options, and market trends. With the right knowledge and resources, you can make an informed decision that suits your lifestyle and financial goals.
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