Planning to buy a new home? While investing your hard-earned money, your budget plays a vital role and often acts as the major deciding factor in selecting a particular property over the other. Other determining factors include the quality of the building materials used, local building code adherence compliances, the floor plan, premium fixtures, amenities, construction technology, craftsmanship, and aesthetics.
But since the budget is a significant aspect, you may be worried about any hidden costs that might be involved. While mobile homes are affordable real estate investment options, some properties are often associated with hidden costs. So, if you are on a tight budget and wish to invest in a good repo mobile home, we will help you save even more!
What is a Repo Mobile Home?
When a mobile home falls into default, the bank may seize it, just like it would have done for a traditional site-built residential property. Such properties are called repo homes, short for “repossessed homes”. It happens when mobile homes enter the state of foreclosure.
Then the bank can sell these repossessed, second-hand but almost new homes at lower prices compared to new homes. You can get exciting deals on repo mobile homes since they have been previously used. It makes these properties an attractive and affordable real estate investment option, specifically for those with a tight budget.
Things to Consider Before Buying a Repo Mobile Home
Homeowners looking for low-budget homes can invest in repo homes, as they usually have excellent condition and are available at lucrative prices. However, before investing in any repossessed property, consider these factors.
- Learn about the property’s condition with the help of a professional home inspector, including both the interior and exterior of the building. It will help you to determine whether you need additional costs for reporting or renovating the property. You can always back out if you feel the repair or maintenance costs are way higher.
- Check the home’s history and learn about the overdue, any kind of liability, and due taxes. A repossessed mobile home may be situated in a great location with all the amenities and furnishings you need. But if there are numerous liabilities that you may need to pay after owning the property, it may burn a big hole in your pocket, also affecting your mental peace.
- Get the necessary documents ready for a smooth buying procedure. Know the crucial documents you will need by talking to a real estate professional to prevent unnecessary delays.
Know the Hidden Charges!
Since the bank that seized the repo mobile home will sell it in its “as-is” condition, you need to hire a professional home inspector to check the condition of the home before making an offer. A good inspection report will include the condition of the following aspects: 
- Power lines or electrical systems
- Drainage
- Structural soundness
- Gas mains
- Sewage system
- Exterior
It is necessary to inspect these areas to get a rough estimate of the additional costs that may incur on you to make the property worth living. Furthermore, buyers may encounter some extra expenses when purchasing repo mobile homes. Some of the potential costs include:
- Property taxes: Depending on your location, you will be liable to pay property taxes after transferring ownership of the mobile home.
- Insurance: Mobile homeowners must insure their homes to protect them against loss or damage.
- Title transfer fees: Before you can start living, renting, or selling your newly-bought mobile home, you need to transfer the ownership of the property under your name. Such title transfer processes involve some charges too.
- Potential repairs, renovations, and maintenance: Budget for regular maintenance work, repairs, and renovations or upgrades that your mobile home may require from time to time.
- Site preparation and foundation: Unlike traditional homes, mobile homes must be transported to the chosen location from the manufacturing site. Therefore, you will need enough land to locate the property. Also, you will need some extra investment in getting the foundation ready to suit your mobile home’s size and climate.
- Transportation: Since a mobile home needs to be installed on your preferred site, you must pay to transport the property to your location.
- Mortgage: When you own the chosen mobile home, you must pay a mortgage on it.
- Land clearing: As mentioned above, you should get enough land to install your new mobile home. Clear the land depending on the size and location of the property. For instance, clear the trees, bushes, and other distractions in and around the preferred property location.
- Community fees: If your property is located within a community, you might need to pay charges for getting access to certain amenities, including a community center or swimming pool.
- Utility and other living expenses: Budget for monthly utility bills, such as gas, electricity, water, cable TV, sewage, and other daily necessities.
You should consider these hidden costs while budgeting to avoid unexpected financial burdens.
Tips on Negotiating the Purchase Price
Although repo mobile properties are already at a great deal, you can save more through negotiation and by understanding the hidden costs. Here are some tips to get a fair price for your repo mobile home.
- Ensure that it is a win-win situation for both parties. While making a negotiation, offer the seller something in return for a mutual benefit. You can tell the seller that you have been checking out hundreds of such homes, and each one meets your criteria. Then the seller will prove why their property is better or even waive a few additional charges.
- Read home appraisal guides on the internet or in libraries. It will help you determine the right value you should pay for your new mobile home in a specific region.
- Don’t get emotionally attached as the seller will take advantage of it and refuse to negotiate.
Final Words
You can choose from numerous options for repo homes, and most of them would be available at great deals. Watch out for real estate websites specializing in foreclosures and consult with real estate professionals to stay updated regarding the latest repo mobile home deals and offers.
Besides, purchase repo mobile homes from reputed and credible dealers only. Trustworthy real estate professionals will help you dignify the hidden expenses and overcome other property-buying challenges you may face. Contact for more information.
