re-sell value of double wide
Hi. We are getting ready to start a major remodeling project in our 1995 double wide. It sits in the back of a trailer park on 2 lots near a local popular lake.
We are going to tear down all the drywall in the house and replace it with 3/8' drywall (I believe), re-insulate exterior walls, new carpet/tile throughout, custom built cabinets, double sink in master bath, new porches, landscaping, and many other things. We paid $20,000 for it and we are planning on re-selling in 5 years time with renovation complete.
All that is really nice but I want more. I want back splash, new faucets, new lighting... In other words I want all the accents that make it special. I want it to feel and look like a house. My husband doesn't agree because it will not raise the value, he says no matter what we do to it we will not get more than $40,000. It was assessed at $55,000 2 years ago in fair shape. I think it would do really well. So my question would be would extra's be of any help in re-sell value?
Bad news first; no matter what you spend on it, it will still be a double wide located in a trailer park.
That being said, a home has three kinds of depreciation: functional obsolesence, which means it would be expected to have an air conditoner and, if it doesn't you have to depreciate the home for that amount.
physical depreciation, which means a worn out roof should be replaced.
location, which means it is still in a trailer court and can't be sold as a 'modular home', which could be done if it were on a private lot.
I can appreciate your desire for the nicer things but you would be money ahead to maintain it as it is, sell it for the best price you can get, and invest it all in a house on a private lot. Existing houses can be almost stolen now while we are at the bottom of the economic slump, and builders are out of work too so they would really talk turkey now.
I wish you the very best with your search.
Like the above poster said, no matter what, it's still a double wide in a trailer park. That being true, you can still get some decent money I imagine, especially with its proximity to a popular lake. I doubt you'll see much of a return on any of the money you put into it though.
I agree with the posts above that you will not recover the value of any remodeling work you do to the mobile home. Particularly, the scope of the project you describe is very extensive and time consuming work. My suggestion woule be to do only what is necessary to maintain a "liveable" home. Then, put the money you would have used on major remodeling into a savings account to buy a newer house or build new on property you own.
just my .o2, Doug
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