We Were ALL Wrong About Mobile Homes

Contrary to popular belief manufactured homes can and do increase in value. There is a common misconception a lot of people have about manufactured and mobile homes that they lose value or depreciate like a vehicle, but over years in the industry I have noticed the opposite to be true. I have seen values of existing manufactured homes increase significantly, selling for thousands more than the original purchase price. In my experience manufactured home values mimic what is happening in the entire real estate market, increasing or decreasing along with whatever is happening in the market. Right now, the market is hot so manufactured home values have increased and in this video I give examples of how much.
Subscribe for more!
Add me on Instagram: kerrytarnow
#mobilehome #manufacturedhome #affordablehousing
*all content on this youtube channel reflects my own personal opinions and should NOT be taken as legal advice, financial advice or investment advice. Please seek out the guidance of professionally trained and licensed individuals before making any decisions.

[@sazinmi]

I still own my 1994 2bed 1bath 16x60 that I purchased new for $27,000. I've invested $30,000 in new kitchen, bath, trim throughout. All new skirting, roof, furnace and on demand water heater. When I considered selling it, the sales team only looked at the fact it was a 1994 brand and model. They offered me $7,000. I've kept the home and now rent it out.

[@amandabellefeuille316]

I just sold my 2 bed 1 bath 1997 cavalier for 1000 more than I paid for it. I owned it since 2011. We did a few updates but it still needed work due to a leaking skylight. We were upfront with the buyers about it.

[@randyscrafts8575]

Yup. They do go down in value where I'm at. I'm living in a 1995 mfg home not worth much and to get rid of it it has to be demolished because the township won't permit it to move it.

[@kristycoggins6510]

THANKS SO MUCH FOR THE INFO.

[@randyscrafts8575]

@@kristycoggins6510 Manufactured home in a park is the way to go if you're looking for cheap housing. Mine is on 10 acres. A manufactured home is nearly impossible to get insured after it's 10 years old and it'll cost ya. They are a fire hazard and preferred target for thieves in the eyes of the insurance agency. Coverage is about a quarter the dollar value of the house I moved from for an annual premium almost double that of that house and what that insurance covers isn't much. It's personal property not real property. To resell an older manufactured home mortgage companies won't do it. Cash only. Just some things to consider that I wasn't aware of when I bought mine.

[@willpcs3453]

A person who owns both the land and the mobile home might see the value of the combined property increase over time, but that is likely the result of the underlying land increasing in value, not the mobile home.

[@KeithandPamBilyeu]

A MH will increase more if you place on your own piece of land rather than be at them whimsof a rental park .. they can raise the rental so much that it erodes that value of home. Too much to move it elsewhere. If people do Modular right, with great foundation or adding an attached garage…the MF part of it fades away and people don’t even know. ‘

[@empressche333]

True. Although in some places, like where I am in BC, mobile home parks are protected. Mobile owners are protected. So if that’s in place here, it might get put in place elsewhere.

[@NachoAE360]

This, I’m thinking about buying 5-20 wooded acres and putting a manufactured home on the property and a shop. I don’t see how that could not increase in value

[@charlesmichael4070]

@@NachoAE360 Yes, it will rise in value because the land gets higher in price

[@crazycajunsunshine]

You own it , but still pay lot rent... Also you don't get a home feed you get a title like a car...not really the American dream, but an alternative option for some who don't care. Personally, luje a condo or home owner association....I feel as if why own a home unless you own the land also...no rules

[@lori5946]

I would rather build a small home myself then a manufactured home. We bought an old gutted house for 10k and did a complete remodel 6 yrs ago in Florida. It is now worth 140k.

[@lori5946]

I have seen beautiful ones in California.

[@ChelseyTarnow]

"Uncle scratch and sniff"🤣 and "whiff" got me loling

[@KerryTarnow]

Haha 😂

[@Machenziethemodel]

I went to palm harbor and they were charging 200k for mobile homes and no it wasn’t a double or triple wide but a regular single wide.

[@KerryTarnow]

Woah, what state? 🤯

[@BigBirdy100]

@@KerryTarnow maybe Florida, that's where the headquarters for palm harbor homes is, in Palm Harbor Florida.

[@Machenziethemodel]

@@KerryTarnow Texas. One of the reps I talked to said while they are building the home the piece keeps going up until they done.

[@charlesmichael4070]

@@KerryTarnow Most of the MHs I see on youtube channels in 2021 are starting at $160K unless its very small

[@polo_sheridan2869]

I just bought a new 2022 model and it cost me 84k for a single wide....

[@Denise-wj4yy]

Thanks for sharing this information..I really appreciate this..it gives me hope and I am in Maryland...please keep these videos coming 💜

[@anafernandes225]

Good advices, near other prefab, the price of land renting, etc 👍

[@gypsysoul8008]

Great analysis. I've lived in a MH most of my life. There was such a stigma attached to living in one until recently. I'm glad more people are coming around.

[@KerryTarnow]

Thank you!

[@rezzbuilds8343]

For real the stigma is so ignorant. I want to build a mobile home park in the future and I already know I'm gonna get groans from the neighbors and municipality. Hopefully the info gets out there

[@melanieo3880]

Zoning needs to follow. We need to see a lot more private lots zoned for mobile/manufactured homes. We are already inundated with Baby Boomers, many of whom are living on nothing but Social Security (like I will be). We need affordable housing. Let us buy a nice mobile home and place it on a lot we can buy with our retirement accounts. Then we'll be able to afford to live.

[@gypsysoul8008]

@@melanieo3880 our zoning is that the land tract has to be at least 3 acres before the county will approve for the MH. Thankfully I'm grandfathered in with 1.5 acres. I agree, they need to be more lenient. Most people are just trying to have their little slice of life.

[@anafernandes225]

And yet, they were fantastic and modern in the 50s and 60s ☀ The silly 80s created that stigma, I think 🏦🎩👔

[@johnstancliff7328]

Mine went up 4X's what I paid for it so they do increase in value. BUT, the homes have to be a post 1978 build, thats when they were reclassified as Manufactured vs. Mobile... lucky enough anything built post 1990 will increase in value, providing the home is taken care of. the myth they depreciate is gone because the homes are new better built and can be placed on a solid foundation.

[@KerryTarnow]

thats awesome, congrats John!

[@cjdavissons6238]

That’s great to know John! Other than temporary housing on your personal land or housing in overpriced housing market regions (ie California), why do people purchase MHs vs traditional stick built home? The prices seem to be about the same in some areas. Is the financing easier on MHs than financing a stick built home?

[@johnstancliff7328]

@@cjdavissons6238 as far as financing goes, now, its about the same as a regular home. the banks will only finance a new MH in a "Land Package" this is where the home is tied to a foundation and made permanent. if the home is in a mobile home park, financing is harder due to the default rate and the banks are extremely reluctant to loan on an existing home in a park, and maybe even a new one. if the home is purchased to be set in a mobile home park, its considered a personal loan and its financed just like a car. check with your bank and other financial institutions for further details. the new home don't depreciate like they used to and are a good investment for first time buyers

[@richardhaas39]

@@cjdavissons6238 In some places it is much easier to bring in and install a mobile home (or manufactured home) than build a stick built one. In central New York state some places are just too remote to have easy access to plumbers, electricians, carpenters, etc. Note here that Upstate NY is vastly different from downstate.

[@richardhaas39]

@@johnstancliff7328 The issue with financing a home in a park is that it does not include the property. If the purchaser defaults and owns the property under the house the bank can foreclose on the property itself. Even if the home is worthless the foreclosing bank will have have something of value.

[@victorianoel9784]

Thank you for this video. I watched so many of them to figure out the difference and you are the only one who explained it very well. Thank you!

[@jackshader8710]

Everybody please keep in mind that this person is a salesman. He's not exactly lying when he says they're going up in value. MH's are selling like mad, however predatory sales practices are VERY COMMON IN THIS MARKET. You will "save" money on this type of home, but depending on land ownership, location, and a few other variables, it can cost much more than estimated and you're stuck in a poverty trap. Pro tip, you can buy direct from the manufacturer and negotiate on price/payment plans. People like Kerry here, middle man the deal and make a stupid amount of profit off of your aspirations of being a home owner. Source, I help build 5+ MH's a day for the largest manufacturer in the US.

[@davidwright873]

So....at the end of the day....it's night time?

[@KerryTarnow]

Lol 😂

[@tonycollazorappo]

What do you think about single seniors living in a mobile home park for seniors? I'm 60 and planning to retire at 62, my house is too big for one person, it's paid off but too big. Thanks for your information.

[@KerryTarnow]

I see a lot of people in your age bracket do it. They downsize and use the equity from the sale to fund the things they want to do in retirement and have less home to worry about. Im certainly not a financial advisor but it is something I see a lot of people do and it seems to work for them.

[@BigBirdy100]

Increase in value IF it has land with it.

[@KerryTarnow]

The example used was in a mhp

[@momobaro5539]

“Uncle Scratch n Sniff.” LOL 🤭 I love your videos Kerry. So informative and professionally presented…. Plus you’re super cute 😊

[@KerryTarnow]

Thank you so much 😊

[@memorex398]

I live in a 2004 Clayton double wide (not sure of the exact model) however I love this house. It’s my boyfriend’s and his dad is in the process of remodeling it and I’m sure the value is shooting up on it.

[@crazycajunsunshine]

Great video as always

[@KerryTarnow]

I appreciate that

[@henryallan164]

Is this windproof

[@charlesmichael4070]

Well, in Denver I see beautifully maintained & upgraded 10-20yr old MHs on rented land selling for half the price of a factory new equivalent MH. No appreciation there. I recently toured a Pinetop modular filled with same ticky tacky features as the`trailers` of my youth in the 70s. Kerry said it himself. It's the tight housing mkt which began about 2014 that is pushing up prices abnormally. When supply/demand balance again MHs will depreciate like cars again.

[@natnielsen8472]

Sorry Charles, but I don't agree with you. What you shared does show appreciation. If a manufactured home that is 10-20 years old - On a Rented Lot - and is selling for half the amount of a new home then it's value has increased. Of course, you have to compare apples to apples so to speak. Or in other words - compare size, make, model, and added features. Even a rehabbed 1980s' metal on metal unit has appreciated. In fact, with people going tiny and the rising cost of fuel, more and more are chosing the less is more route. Our country needs more honest and truely reputable manufactured home communities that are easily maintained.

[@charlesmichael4070]

@@natnielsen8472 Thanks for the input Nat but I am afraid we still disagree.The fact that a very well maintained MH with new upgrades sells for half the cost of an equivalent new one means it's price did not even keep up with inflation. In inflation adjusted terms the market value of the old MH actually dropped about 70-80% in the10-20 years mentioned. Would we be saying this about a Condo 20 years after construction? Not very likely. Even in Denver's housing bubble market they have not held value. I hear you on the issue of people going for whatever they can afford but thats not the topic. I think the single best thing government could do would b to provide seed money for people to start their own co-op MH communities so their monthly HOA would only reflect maintenance needs rather than being jacked up yearly just because of a housing bubble. Then they would face maybe $200 HOAs rather than $800-$1000/mo lot rent as in Denver now.

[@natnielsen8472]

@@charlesmichael4070 Thanks for your response. Although, we can agree to disagree. Here's just one example: 2700 sq ft. MH purchased in a MH community in 2012 - the home was in great shape and a 1992 model loaded with features - purchased for $32,000. If someone were to purchase an equivalent new 2700 sq ft 2021 home with less features it would cost between $150 - $200 thousand. Now, this doesn't take into account that the beautiful 1992 MH when purchased had two very large decks, and beautiful landscaping. If today, these were to be added to the total price of purchase the new homeowner would be chucking out at least another $10 - $15 grand. This is what has been taking place in the midwest. This is only one of many examples that I could share.

[@charlesmichael4070]

@@natnielsen8472 Not sure your point here. You state a new equivalent 2700 SQ ft MH today would cost $200K but the equivalent updated 1992 model sold for $32k recently? That proves my point! A new one is $200k, an equivalent 30 yr old one sells for $32,k. Perfect example of not holding it's value. Deduct renovations and inflation and it's even more an example of eroding value like a car.

[@natnielsen8472]

@@charlesmichael4070 You misread what I wrote. The 1992 home sold 10 years ago for only $32,000. 3 years later it sold for over $60,000. Now, 2022 - 7 years later it would sell for alittle more than $100,000 with it being 2700 sq ft. - maybe even more with it's 5 huge bedrooms! So yes, the value has blown up - just as in stick built homes!

[@lonelyp1]

I have lived in my MH in a park for over 20 years I get most of my value from time spent. Now I am looking to get out of the park and buy a lot with a home, but will go with MH or modular, or stick built all depends on the offerings in my area. If we do go into a recession, it could be good or bad for my timing. Don't put down MHs too much even in a park. I have NEVER lived in an apartment. and my home after 20+ years may be a POS. But it has been paid for, for years not counting lot rent. I don't expect to make any money on a sale. In fact, I might sell it to the park to get out of lot rent, after I move. It needs a lot of work I won't spend the money on. Brand new Manufactured home on its own lot, great. Modular home could work too. I don't plan on having anything stick built, but preexisting, the right home for the right price, of course. My home is paid for, so I have time to shop. 😎

[@nomadjack2949]

Only with land would that mobil home increase by that amount and most likely in California!

[@lori5946]

You can't get mortgages on older manufactured homes. You have to have cash to buy older ones.

[@sheldonmurphy6031]

I love my tuna can, even though trailer homes are no longer a tuna can, it's still my humble tuna can! I own it fully, purchased it for 16k, and with a few modern upgrades, and a couple of skylights in the livingroom, I know I could sell it for 34k no problem! 😊 But I honestly would sell it. It's a perfect little home for myself and my 2 kiddoes. 😊 This Video was cool! Thank You Sir 😁

[@KerryTarnow]

Thanks for watching 🙌🏼

[@lizz741]

..."Uncle Sratch & Sniff"...😂😂...tfs...

[@KerryTarnow]

Haha 😆

[@rosanneallen-hewlett9973]

It's the ONLY way to live folks! Mine has gone way up along with real estate . What's better...$50,000. Or 500,000. ?

[@abueloraton]

Are you Canadian?

[@KerryTarnow]

Yes

[@natnielsen8472]

Another well done - informative video - you always share important and extremely relevant content! I always look forward to your videos because they are factual- you definitely know the business!

[@KerryTarnow]

Thank you! appreciate that

[@jeffbowers950]

Its called inflation ! The value of mfg homes does not improve because the quality is cheap. However the prices are going up on these cheap homes because of inflation. A bad economy leads to more people needing inexpensive homes which increases demand for these low quality homes. The sad truth is simply that our money is just going down in value - tranlation - EVERYTHING costs more.

[@PublicExecution]

Getting rid of the current President will do wonders.

[@bobbydaleweisinger1106]

What happen when the government says your tenant does not have to pay rent?

[@jamesonpace726]

Just mind your own....

[@crazycajunsunshine]

You own the home...if you have to rent it out you do a lease and that has restrictions in it. If you end up kicking out the tenant you take them to court. Best to do a thorough credit check and real references

[@jamesonpace726]

Takes a big man to admit so publicly, I applaud you, Sir...!

[@KerryTarnow]

Thank you!

[@anafernandes225]

Prefab homes need to be innovative, both in materials and design 😶

[@melissalee9171]

Hilarious! I live in Delaware.

[@emmanuelgutierrez8616]

The main reason why they went up in value is because they were built good like traditional homes since 2008. Any built before that, any value rise is just temporary.

[@natnielsen8472]

Where are you getting your information because it's incorrect???

[@emmanuelgutierrez8616]

@@natnielsen8472 the hurricane codes for started after 94' for traditional and manufactured homes. Another big update came around 2006 for windows. This is a perspective from a real estate background in the southeast part of the u.s. which gets hit every few years. Anything not ready for hurricane, is basically too expensive to insure and is just waiting to be blown apart.

[@natnielsen8472]

@@emmanuelgutierrez8616 I appreciate you sharing this information. I wasn't familiar with it - very interesting - thank you.

[@andrewkurtz737]

Just another thing Dave Ramsey is wrong about.

[@KerryTarnow]

haha exactly!

[@anafernandes225]

"With lots of retirees" 😁

[@JustinTuthill]

Upload date: December 2021 so completely disregard.

[@enaimegonzalez3280]

Great video...do you think MHomes are dropping in price ,like the rest of the market?

[@natnielsen8472]

No, they were the original tiny home, but with a stigma - not so much any more. Society has gotten wiser in the housing industry. Many more consumers have awakened to the realization that a home built in a climate controlled environment and offering all of the interior amenities of a stick built home for a lot less is a valuable asset to own. There are more financing options available for manufactured homes as well here in the USA - not sure in regards to Canada. As always, and with all housing purchases, due diligence is necessary in every facet and detail of a purchase. This includes the land it will sit on.

[@kalrobbins2811]

What is the difference between a manufactured home and a modular home? Or, are they both the same and use the same building standards.

[@tuneyouup]

Wrong 😑 bubbles wrapped up in bubbles

[@califwillie4247bd]

Yes and No...In California it is only reently, the last 2 years, that manufactured homes have held their value or increased a bit. This thing with Malibu is a whole different world and always has been. Those homes are totally stripped down to their frames and rebuilt into unbelievable mansions. Not typical at all....It seems Canada is way ahead in prices for existing manufactured homes.....The states no so much.

[@PublicExecution]

The mobile homes I'm seeing in California are 100k or more. Ridiculous

[@gweger6425]

Who is uncle scratch and sniff?

[@KerryTarnow]

Haha whoever you want him to be.

[@deannabarnes3771]

It can be an action....

[@bobbydaleweisinger1106]

Location, location, location

[@KerryTarnow]

100%

[@Paul-mu9ng]

Note the old deal on cars was they dropped immediately. Not so with Teslas. They have been appreciating.

[@KerryTarnow]

Good point!

[@crazycajunsunshine]

Buyers still aren't getting a full basement or usually the land they are in parks which obviously are 2 horrible things. The quality has went up, but at the end of the day building your own home with a safe basement and not in a nasty trailer park is better. Unfortunately, there will always be a stigmatization in trailers . Might as well build a tiny house on wheels. Thank you for your videos and positive outlooks and realistic thoughts on this. 😇

[@Epicmango7]

Manufactured homes are a big deal now

[@KerryTarnow]

Very big deal

[@johncummings9494]

I don’t know about your Uncle Scratch and Sniff but mine…… just yanking your chain. Love your sense of humor. Very excellent video and important correct information for everyone to know. You live in a retirement community? You’re too young! Thanks again.

[@KerryTarnow]

haha! thanks for watching John

[@johncummings9494]

@@KerryTarnow my pleasure!

[@johnbrooks1188]

Bought a 14' X 70" in 1982 for $18K, and sold this 1974 2 BR 1 BA mobile home in 1986 for $25K. It was in a rental park in southeast Connecticut. Location and maintenance are most important. Sure a bad park ("location") will have a negative effect on value. So will living in a conventional home neighborhood with crime, poor property maintenance, and crummy neighbors. One of the pluses for manufactured homes is that you aren't tying so much of your assets (or piling up so much debt) in your residence.

[@KerryTarnow]

Exactly! Thanks for sharing

[@johnatyoutube]

Were these statistics for only manufactured homes on owned lots? What about these homes on leased lots? I'd imagine those would be very different. I'd be a little concerned about making trend assertions since we're in a very unusual time. It's too early to make any long term conclusions about future trends. The important thing is to have an affordable home. And if a manufactured home gets you there and it makes you happy, that's great. But, I wouldn't depend on any home gaining value in the near future since we just went through a fear-driven buying surge and we're bound to have a market correction that's at least going to result in a flat real estate market - especially because interest rates will most certainly be rising in 2022. What would be important to understand for investment purposes are long term statistics. 5 year analyses mean little in real estate. Since the manufactured home industry has made such dramatic changes in its products, it's a bit difficult to predict and ultimately is dependent on public perception and supply and demand and interest rates. You're doing a great job of educating people. But, it would be really useful to have long term maintenance comparisons of manufactured vs. site built homes. E.g. what is the expected life and maintenance of a manufactured home built today? How does it differ from site built homes? Btw, I know KZbin content creators seem to be entranced with the Malibu Paradise Cove trailer park, but it's an outlier and not comparable to anywhere else. It's not really relevant to this discussion.

[@empressche333]

All the statistics he mentioned had to do with MH on leased lots. And yes, these have dramatically increased in value. The downside is what laws are protecting MH owners in the state or province you are looking in? Here in BC, MH owners and parks are protected from massive increases, and an owner of a park just deciding to sell the park and evict all MH owners. But different states and provinces do different things.

[@mosheedy9862]

Uncle Scratch and Sniff!!!😂🤣😅

[@KerryTarnow]

hahaha

[@dennishowland7495]

I agree kerry yes the mobile home mystique when I was growing up was negative do you know do you know was you know trailer park trash but now you bring a News perspective to him in his mobile homes you show me the better than some homes that I see I’m here love them they’re great and I told you before I wish I could buy a mobile home park I’ve had seen quite a few in Florida for 700,000 and up even up till like 3 million but they’re out there I wish I just had the money do you know of anybody that does any financing for the mobile home parks with zero down or minimal down payment on mobile home parks in Florida let me know if you do I appreciate it have anybody that does it the financials

[@sheilawilliams9898]

Did you not see the storms the other say. All those homes were blown away. They need to make those homes out of steel.

[@natnielsen8472]

Even the stick built homes were blown away - all of it so so sad

[@KerryTarnow]

My mother in law lives in St Louis!

[@natnielsen8472]

@@KerryTarnow Oh wow - sure pray she's ok!