The most difficult objection a salesperson/retailer will confront is the following most expressed belief: “A manufactured home is a poor investment, because they depreciate.”
That belief is a lingering myth. Not only prevalent with manufactured home shoppers, but more importantly, many potential home buyers will not consider manufactured homes for purchase, because of the preconceived notion of “mobile homes” from long ago that has been passed down from generation to generation, like automobiles: ”they depreciate.”
That characterization has not been accurate for many years, yet the myth is still prevalent with those that have not explored the realities of today’s manufactured housing as a sound investment equal or superior to site-built homes in every respect.
The long-standing belief that manufactured homes do not appreciate value as opposed to traditional site-built homes is contrary to the fact that today’s manufactured homes have equal standing with a home built on site, in terms of return on investment, positive or negative.
Studies since the 1980s consistently indicate that modern manufactured homes sited under the same conditions as site-built homes will appreciate or depreciate subject to the same conditions as site-built homes.
- The housing market in which the home is located.
- The community in which the home is located.
- The initial purchase of the home.
- The age of the home.
- The condition of the home.
- The features of the home.
- The inflation rate.
- Supply and demand.
The appreciation in value of a manufactured home comes back to the old real estate axiom, “location, location, location.”
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