Why does the value of a house APPRECIATE when the value of a mobile home?
Manufactured Homes April 16th, 2010DEpreciates? My husband and I were just discussing this and realized that it doesn’t make much sense. The wood in a house gets old, the electricity gets old, and after a while a house that catches fire will burn in a heartbeat just like a mobile home..
So.. I don’t get it. Why does a house go UP and a mobile home go DOWN?
April 16th, 2010 at 8:14 pm
Mobile home is considered as personal property (like anything that you can take with you) and homes are real property secured with a foundations to the land.
April 16th, 2010 at 8:14 pm
Because a trailer is a depreciating asset just like a car unless it is attached to your own land in a manner that it is indeed considered real estate.
Yes homes have depreciated recently but will rebound the trailer just keeps going down in value.
April 16th, 2010 at 8:14 pm
The value of a house actually goes down when compared to an exact duplicate house that is brand new. The price of the new houses usually goes up in part because of inflation and so the used house could be worth more than it was when it was new but not as much as the brand new homes just being being built today. The value of a house connected to land also includes the value of the land and that may go up or down depending on how desirable the neighborhood is- but generally land is still just as good today as it was 100 years ago.
A mobile home does not normally include the land it sits on. The price is normally just for the structure so the depreciation is much more evident.
Often I find that people spend more money on remodeling a house than they do a mobile home- so that would be another factor.
April 16th, 2010 at 8:14 pm
Most houses last 100-150 years, we have houses around here 350 years old there are no 350 year old mobile homes. If mobile homes were built with the same quality materials to the same structural standards as houses, and attached to sound foundations in a proper manner their value would appreciate as houses do, that is presuming that they are on land owned by the trailer owner. they make as many special trailer materials and fixtures just to make them as cheap as they can so that they fall apart so that they can sell more trailers.