Selling a mobile home, land or a multifamily property: what to know

Selling a mobile home: what you own decides how you sell

The first question when selling a mobile home is whether it's personal property or real property. A manufactured home in a park or on rented land is usually titled like a vehicle, through the state motor vehicle or housing agency, and you sell it by signing over that title. A home permanently attached to land you own may have been converted to real property, with the title retired, and is then sold with the land by deed like any other house.

Find out which applies before you list or accept an offer. The state agency that issued the title, or a title company, can confirm it. If the title can't be found, the agency usually has a process for a duplicate, which can take time.

Rules differ by state, including which agency handles manufactured home titles, how a home is converted to real property, and whether a sales or transfer tax applies. Selling a mobile home goes faster when you confirm those details at the start rather than at the closing table.

• The home's title, or proof it was converted to real property
• The HUD certification label and data plate (for homes built after June 15, 1976)
• The lot lease and park rules, if the home is in a community
• Any loan or lien recorded against the title
• Recent property tax or personal property tax bills

Selling a mobile home in a park or on rented land

If the home sits on a rented lot, the buyer will also need the community's approval to stay. Many parks require buyers to apply, pass a background or credit check and sign a new lot lease, and some have rules about the age or condition of homes that can remain or be sold in place. Ask the park manager for the requirements in writing before you market the home, and keep the lot rent current; unpaid lot rent can lead to liens or eviction proceedings that complicate the sale.

Moving a manufactured home is expensive and requires permits and a licensed mover, and older homes may not be movable at all. That's why most homes in parks are sold in place.

Selling a mobile home in a community also means coordinating with the manager on showings, signs and the buyer's application. Some communities have a right to approve or even purchase homes for sale on their lots, so read the lease for any such clause before you sign with a buyer.

Financing and buyers when selling a mobile home

Buyers of homes titled as personal property usually can't get a regular mortgage. They may need a chattel loan or pay cash, and homes built before the federal HUD code took effect in 1976 are especially hard to finance. That shrinks the pool of buyers and is why cash buyers are common when selling a mobile home.

Price the home on recent sales of similar homes in the same community or area, its age, size and condition, and the lot terms a buyer will inherit. A home on owned land is valued with the land and can reach a wider pool of buyers.

Small fixes can help when selling a mobile home on the open market: secure skirting, working steps and railings, clean carpets and a roof without leaks make a home easier to show and easier to insure. Larger problems, such as soft floors, frame damage or water intrusion, are usually better disclosed and priced in than repaired in a rush.

Selling land

Land is valued on what can be done with it. Before you sell, confirm the boundaries with a survey if you have one, the zoning and allowed uses, legal access from a public road, which utilities reach the lot, and, for rural land without sewer, whether the soil can support a septic system. Flood zones, wetlands, easements and mineral rights can all affect value.

Keep the property taxes current; unpaid taxes on vacant land are a common reason a sale gets complicated. Land buyers range from neighbors and builders to investors, and many pay cash because land loans are harder to get than home loans.

Selling a multifamily or small apartment property

A duplex, triplex or small apartment building is valued largely on its income. Buyers will ask for the rent roll, the leases, the security deposits, a year or two of income and expenses, utility costs, and the age and condition of the roofs, systems and units. Many will ask for tenant estoppel certificates confirming the rent and lease terms.

Existing leases generally continue after a sale, and local landlord-tenant law controls notices, access and deposits, so the tenancies need the same care as any rental sale. Taxes differ from a primary home too: depreciation recapture and capital gains generally apply, and some owners use a like-kind exchange to defer them. Ask a tax professional before you sign.

Expect a buyer of a multifamily property to inspect every unit, so plan access with the tenants and give the notice the leases and local law require. Organized records and cooperative tenants make the difference between a smooth sale and a long renegotiation.

Other special-use property

Commercial buildings, mixed-use properties, storage, and properties with unpermitted units or unusual zoning all need property-specific facts: leases, permits, zoning letters, environmental reports and operating records. The more unusual the property, the smaller the pool of buyers and the more the documents matter. A local attorney or commercial broker can help with property types outside the residential market.

As with selling a mobile home, start with the documents and the title. Knowing exactly what you own, what the zoning allows, and what any tenants or users are entitled to will shape the price more than any single repair.

Disclosures and liens when selling a mobile home or land

Disclosure rules still apply. Most states require a seller to disclose known material defects, and federal law requires a lead-based paint disclosure for most housing built before 1978. When selling a mobile home, disclose known problems with the roof, floors, plumbing, the frame or the tie-downs. For land, disclose known easements, encroachments, environmental issues or access disputes.

Liens must be cleared at closing. A loan on a mobile home is usually recorded on the title, while liens on land or a multifamily building appear in the county records. The title or closing company will order payoffs and pay them from the proceeds.

When a direct sale fits, and when listing nets more

A direct cash sale tends to fit when buyers can't easily get financing, such as an older manufactured home, raw land or a building that needs work; when the property is inherited, vacant or far away; or when there are tenants in place. Listing tends to net more for a newer home on owned land, a buildable lot in a strong market, or a well-run multifamily property with good records. Get a written offer and an agent's or broker's opinion, and compare the net.

For selling a mobile home in particular, the comparison often favors a direct sale when the home is older, needs work, or sits in a community with strict buyer approval, because each of those narrows the pool of financed buyers. For land and multifamily property, the gap depends on how much preparation, marketing time and documentation a listing would require. In every case, verify the buyer, read the contract, and make sure a title company or the proper titling agency handles the transfer.

Selling a mobile home, land or multifamily property to Prominent

Prominent Cash Offer buys property directly, as-is, in any condition, including manufactured homes, land and small multifamily buildings, where the property is a fit. You share the address; if it is, you receive a written cash offer with the amount and terms spelled out. There are no fees or commissions, we pay the closing costs, and you choose the closing date. There's no obligation to accept.