Thinking of Buying a Used Mobile Home? 18 Steps For What to Watch Out For and How to Do it Right
If you are thinking of buying a used mobile house, there are things you need to look out for. Buying a mobile home is just not like buying a regular stay built. You need to understand what to watch out for before you buy a utilized mobile home. Here are 10 things to watch out for when purchasing a used mobile home. These tips will guide you to associated with right decision and/or how to negotiate in your best interest. Better safe than sorry. My 7 years of selling used cellular homes has taught me a lot. I am now passing upon that information to you to enable you to make an educated choice.
1. Age. If your finances are tight, usually do not buy anything older than 1977. That is the cutout time for good funding and also the year a loan provider can determine if the used cellular home is a HUD house. 1976 and older were authorized with DMV and not constructed to code. Therefor, lenders demands a 20% down on a 1976 or older. The term is going to be no longer than 15 years and the rate will be somewhere around 11-12%. That is a lot to pay out. 1977 or newer requires just 10% down, you can get 20 yrs of financing and the rate will be 1-2% lower. That is a much better deal. If the home will be newer, the rate can be as low because 8%. Preferable, look for a house that is no more than 15 years old.
2. Park. Not all parks are usually approved by the lenders. Before making a deal to purchase, get yourself loan authorized for that particular park. If the area rent is too high or in case there are too many foreclosures in the recreation area, lenders might say no to financing.
3. Rent control. Is it or is it not really? Most parks are but some are certainly not. If not, make sure yo completely understand what kind of yearly increase the recreation area will impose on you. You may not mind paying that extra raise per year but each time the space lease is raised, the value of your own mobile home WILL go down. Its like a car, depreciating. Still, it beats renting an apartment with individuals above, below, left and best.
4. Crime. Does the recreation area have a security program? Is the park patrolled regularly simply by a security patrol company? If not, you probably should stay away. Yes, it is true, all residents possess to follow the rules and rules but if there is no security, many things can occur. A security patrol is a prevention, crime will go elsewhere. Call the particular park manager and inquire. You can also call the local police workplace and ask for a crime record. Strongly recommended.
5. Pets. What is the parks policy? Your 80 ldb golden retriever might have a VERY hard time getting approved. Same for your pitt bull or any some other so called “vicious breed”. Most parks is not going to approve them. There is only 1 park in the Santa Clarita Valley that will approve a large canine, even two. However, no “vicious breeds”. How stupid. Recently, I had a dog trainer with good credit, a large down payment and a German shepherd. That dog was the almost all well trained German shepherd but zero, considered “vicious”. So are dobermans, boxers, pinchers, chows and a couple of more. Inquire with all the park BEFORE looking at any utilized (or new) mobile home. Save yourself the time (and your agents) by finding out first.
6. Neighbors. Most people are nice. However, because you are going to be living in limited quarters (most mobile home areas are small and set extremely closely together), go and chat to the neighbors. Both those next door and some a several doors down. The ones a few doors down are the types that will tell you what REALLY is happening. Maybe the couple next door having along any more. Maybe there is an alcoholic beverages problem. Maybe the kids play as well loud. You need to understand. Drive by in the evening, hang around regarding a while. Do the same for your weekend. Spend an hour on a Saturday night, driving around the cellular home park, you will then now issue is a place for you.
7. Managers. Do they do a best wishes? Do they care? Do earning the residents follow the rules and regulations? Do they arrange reunions every now and then? Any holiday dinners? Do they post a newsletter to keep you up-to-date? Do you feel welcome in their workplace? Most managers take great satisfaction in their park and are joyful to try to help you. Make sure that is the case.
8. Trash. An old toilet sitting by the end of a car port? Knee-high weeds? A car jacked up and being worked on in a carport? You do not want that. What you should want, is a clear, manicured park community where the occupants take pride in their mobile homes and keeps their surroundings clean. The carport is not supposed to be taken for storage (or a back again yard). A shed is where you maintain your excess belongings, period.
9. Mobile home values. Holding steady? Going up? Declining? Have your Realtor find out for you. Buying a utilized mobile home is very much like purchasing a used car. A seller may set any price but will be it worth it? Please usually do not over-pay. If you need to financing your used mobile home, you happen to be then in a much more secure position. You are then needed to pay for an appraisal to find out the REAL value of the particular mobile home. However, if you are planning to buy your mobile home for money, watch out. No appraisal is required yet I would recommend you pay the $400 to the appraiser. It you will save thousands. The choice is yours.
10. Health and Safety. What problem is the mobile home in? The basics should all be there. If not, it is the sellers obligation to have it done. That includes;
A. Smoke alarms. Each bedroom needs one, that is the program code. And, it needs to become working!
B. Water heater. Needs to be double-strapped and not really with those tiny metal rings that has little wholes in them. Is there a pressure release device? If it where to over-flow, does the pipe go beneath? Should not. It needs to extend out to the side of the skirting. Is the water heating unit closet dry-walled? Has to become. Any leaks?
C. Steps. Are they solid? No rips within the carpeting (trip hazard)? What regarding the railing? Is it loose? Can not be. How far apart would be the rails? Should not be more than 4″ so that a small child cannot get stuck in between.
D. Cooling system. Does it work? It is not really a health and protection issue but if it were me personally, I would insist on it or request a reduction in price. Who desires to live in a used cellular home, maybe with metal house as well, and summer comes around and it is 105 degrees outdoors.
E. The furnace. When had been it last serviced and just how dirty is the pad? Take a good look and make sure it works. Have someone come and take a look at it.
F. Plumbing. Any leaks? Should not really. Run all faucets and appearance underneath.
G. Electrical. Does all of the outlets and the switches function? Make sure they do. GFI’s? You do not want the risk of becoming electrocuted. Both kitchen and bath rooms needs GFI plugs.
H. Roof. Any leaks? Look around thoroughly to see if there are any drinking water stains in the ceilings or round the upper walls. How old will be the roof?
I. Earthquake bracing. Does it have it? Bring a flashlight and open up the entry door in the skirting. There must be (on a double wide cellular home), two in the front and two in the back. Compare all of them to the regular piers and jacks. Are they beefier? Bolted to the I-beam? They should be. Surprisingly enough, there are still some used cellular homes out there who do NOT have all of them. On top of that, it is not considered a health and safety issue and it will be perfectly legal to sell a used mobile home WITHOUT all of them!
If you do buy a utilized mobile home without earthquake bracing and later on decides that it was not the smartest idea, a contractor will charge you about $5000 to install them. Not inexpensive. If it does not have it, request a price reduction and after that order the escrow company to set aside $5000 to the service provider. At the close of earnest, your contractor will come out and install them for you. If you could have him install it the day JUST BEFORE close of escrow even better. Because, if you just take a price decrease, you are going to be therefore busy moving and exited regarding your purchase of your cellular home. You’ll “forget” about the bracing and end up buying new home furniture instead!
Ideally, you should hire a health and safety inspector to know how to inspect a cellular home
8. Once you are park-approved, it is time to schedule your wellbeing & safety inspection. You are usually free to use any certified health & safety inspector for the inspection or I can recommend many to you. Besides the health & safety inspection, I would strongly recommend you might have an electrician look over the home. Sometimes, a regular h& s inspector can not really know what’s going on. These inspections are not free and based on who it is, they all cost slightly different. When we proceed to see the inspectors at your upcoming home, please bring your check out bock. Once the inspection has ended, the inspector will go over their findings with you.
9. It is currently 24-48 hours after that the health & safety inspection took place and today we are holding the report within our hands, going through it together. It is the sellers responsibility to include any health & safety problems, such as electrical, plumbing, roof, smoke cigarettes alarms, double-strapped water heater and etc. Anything cosmetic is just that, beauty and the seller does not have to perform anything. However, you could always try out to negotiate if you strongly experience there is something you want the seller to do and of course, We are there for you, every step of the way.
10. Termites? Pesky small critters and they are usually EVERYWHERE! We would absolutely want to possess the home inspected for that too. We will get a written report along with a diagram, showing their results. Anything that they find that is categorized as a SECTION I, provides to be taken care of and hopefully, the seller is willing to do that. If not, it’s upon you. I have a very strong opinion with regard to termites. That is, easily were buying a home, why exactly should I have to pay for somebody else pest problem? I never lived right now there. I did not invite them. So, why pay? On the other hands, if I got the home at a very good deal, I would probably purchase it. It is your decision and hopefully we will not run within to this problem if the seller happily pays. SECTION 2 are suggestions from the termite inspector of items that will need attention in the future and are certainly not items that has to be taken treatment of now. Termite inspections are usually paid through escrow.
11. Time to order your appraisal. An appraisal will be necessary if you are going to finance your purchase, the lender will need it. This is an expense that may not be financed and you will have to pay it upfront either simply by meeting the appraiser at your upcoming home or by simply writing the particular check to the appraiser and let me handle it for you.
12. Your loan conditions. When a person first got pre-approved, we posted certain papers to the lender. There might also be additional paperwork these are asking for and whatever that is, this is the time for us to do that.
13. Your home has now been appraised and hopefully, it did appraise. If not, we might need to possibly re-negotiate with the seller or you may have to come up with a larger deposit, whatever is the case or we may have to look for another house for you.
14. Your loan files are now ready to be agreed upon and there will also be additional documents from escrow to sign, for example hazardous disclosures. We live in earthquake country, there are massive rains occasionally and we get flooded. You might be close to a jail or maybe an airport. These points are hazardous, we all live with all of them. Escrow wants you to understand this, and you already perform. When you go to sign all of this papers, please bring your cashiers check for the balance of the deposit. Before you do, I will give you approximately closing statement so that you know how very much to bring. There will be a good overage, meaning escrow will request a little bit more, just in case. We do not want to delay shutting escrow because they are a few bucks short (maybe they needed to over-night a package twice).
15. Time for us to do a final inspection of the home. We want to make sure that everything that required to be taken care of, continues to be done. We will do a last walk-through together.
16. You are actually going to go to your own appointment with the park to indication your lease, read and indication the park rules & rules and pay your space lease and deposit. This takes regarding 1 ½ hour. If this really is in the middle of the month, earnest will pro-rate the space rent. Parks do not take partial payment, just full. The deposit is refundable after paying your space lease on time for 12 consecutive a few months. You can then, in writing, ask for it back.
17. The loan has funded, the money has been received simply by escrow, every single piece of papers has been signed by all celebrations involved and escrow is now shut. CONGRATULATIONS! YOU ARE NOW A HOME PROPRIETOR.
18. I will give you your last closing statement from escrow and possibly a check too, along with the keys to the home, TIME TO BEGIN MOVING IN!
Again, congratulations. Let me personally know when the movers are arriving, I want to order you a few take-out and something to beverage, you are going to be as well busy and besides, who has period to cook while moving.