One of my favorite parks, Cottonwood Estates in south Sacramento, has seen a tremendous drop in prices.
I've always like Cottonwood because of the uniqueness of its garages. Most of the MH's in this community have full garages, and the ones without garages have "garagettes".
There is only one other MH community in the Sacramento area with 100% garages, and that's Diamond K in Roseville.
Diamond K is a senior park, and Cottonwood is a family park.
The last loan that I closed in Cottonwood was for $50,000, with a purcase price of $100,000. And that was four years ago.
Checking the MLS, of the latest listings to hit the market from Cottonwood have asking prices UNDER $20,000. That is an 80% drop in value. (these are probably REO's).
Of course, most buyers will have all-cash at these low prices. But for those who need financing, they're looking at a 15-year loan with a rate of 8.99 (at 5% down).
With a monthly space rent of $600, the total combined housing expense will be only $800/month with a price of $20K and a 95% loan.
Where else can a growing family settle down and OWN a 1400 square foot home w/2-car garage for $800/month??
Wednesday, March 24, 2010
Monday, March 22, 2010
Marin Mobile Home Park Sizzles with Buyers: Another "Bidding War" Erupts!!
MARIN VALLEY MOBILE COUNTRY CLUB IS VERY POPULAR FOR SENIORS
With a view of the San Pablo Bay, seniors in Marin County may live comfortably in Marin Valley Mobile Country Club.
This is a very popular senior park in Novato. The park is owned by the city, which is why the space rent is very low ($550 per month). Considering the quality of this park, and the bay view, the monthly lot rent is extremely desirable for fixed-income seniors.
In fact, this one of only two senior parks in all of Marin County that I'm aware of.
Most of the MH's in this park are the original MH's from the early 70's when the park was built. I'm working on a possible loan now for buyers making an offer for a double-wide built in the early 70's.
ANOTHER BIDDING WAR ERUPTS!!
My customers are making an offer and are competing with a few other people submitting offers this weekend for the same home.
Asking prices are pushing $100,000, and according to my appraiser, prices are "ON THE RISE".
With a view of the San Pablo Bay, seniors in Marin County may live comfortably in Marin Valley Mobile Country Club.
This is a very popular senior park in Novato. The park is owned by the city, which is why the space rent is very low ($550 per month). Considering the quality of this park, and the bay view, the monthly lot rent is extremely desirable for fixed-income seniors.
In fact, this one of only two senior parks in all of Marin County that I'm aware of.
Most of the MH's in this park are the original MH's from the early 70's when the park was built. I'm working on a possible loan now for buyers making an offer for a double-wide built in the early 70's.
ANOTHER BIDDING WAR ERUPTS!!
My customers are making an offer and are competing with a few other people submitting offers this weekend for the same home.
Asking prices are pushing $100,000, and according to my appraiser, prices are "ON THE RISE".
Wednesday, March 17, 2010
Another bidding war over Manufactured Home in Sacramento Mobile Home Park
BUYERS APPLY FOR MANUFACTURED HOME MORTGAGE FOR MOBILE HOME IN A PARK
There has been another bidding war over a mobile home in a park in the Sacramento area recently.
The manufactured home community this time is Meadowbrook MHP. This is a desirable family park in the north Sacramento area. The management has very strict guidelines when it comes to approving applications for residency.
The seller of the mobile home received two offers, both contingent upon park approval. One bidder has a recent foreclosure, and the other bidder has stellar credit.
The applicant with the foreclosure got declined by the park, eventhough they were an all-cash buyer, and the applicant with the stellar credit got approved. Their offer is contingent upon park approval AND loan approval, which comes next. (They have 800+ Fico scores, so no worries here).
The subject home is a 1978 Skyline double-wide, asking price $24,500.
The lender will require 15% down. Closing costs will have to be collected through escrow, unless the house appraises higher. If the house appraises higher, then the lender will adjust the LTV for the purpose of financing closing costs.
There has been another bidding war over a mobile home in a park in the Sacramento area recently.
The manufactured home community this time is Meadowbrook MHP. This is a desirable family park in the north Sacramento area. The management has very strict guidelines when it comes to approving applications for residency.
The seller of the mobile home received two offers, both contingent upon park approval. One bidder has a recent foreclosure, and the other bidder has stellar credit.
The applicant with the foreclosure got declined by the park, eventhough they were an all-cash buyer, and the applicant with the stellar credit got approved. Their offer is contingent upon park approval AND loan approval, which comes next. (They have 800+ Fico scores, so no worries here).
The subject home is a 1978 Skyline double-wide, asking price $24,500.
The lender will require 15% down. Closing costs will have to be collected through escrow, unless the house appraises higher. If the house appraises higher, then the lender will adjust the LTV for the purpose of financing closing costs.
Tuesday, March 16, 2010
Mansions Go Modular as Costs, Timeline Lure High-end Buyers
The stigma surrounding modular homes is coming to an end with the introduction of factory-built mansions, as seen in Washington, D.C., and some of its wealthy suburbs.
Buyers are designing their dream homes, paying at least 15 percent less, and seeing the end result in half the time it takes to build a traditional dwelling.
One couple's home was built in two weeks in a factory in Pennsylvania, with the pieces packaged into 21 boxes, trucked to the site in Bethesda, M.D., and assembled box-by-box in just 32 hours.
The traditional home being built next door was still wood beams and empty window frames three months into construction and would not be completed for another nine months.
Architects and manufacturers across the country are joining forces to create customized modular homes in the same styles as long-appreciated traditional homes. Buyers make all of the decisions for the home upfront with computer-driven drafting, which saves money. Fixed schedules, shorter construction loans, cheaper labor, and green features all add to the appeal of luxury prefab homes. Approximately two dozen homes, each valued at over $1 million, have been developed in Washington and pricier suburbs.
Some residents who initially were opposed to the idea of prefab in their traditional neighborhoods are beginning to agree that there is no visual difference between the modular and traditional finished product.
Courtesy Manufactured Housing Institute
From "Mansions Go Modular as Costs, Timeline Lure High-end Buyers"
Washington Post (03/04/10) P. B1; Rein, Lisa
The stigma surrounding modular homes is coming to an end with the introduction of factory-built mansions, as seen in Washington, D.C., and some of its wealthy suburbs.
Buyers are designing their dream homes, paying at least 15 percent less, and seeing the end result in half the time it takes to build a traditional dwelling.
One couple's home was built in two weeks in a factory in Pennsylvania, with the pieces packaged into 21 boxes, trucked to the site in Bethesda, M.D., and assembled box-by-box in just 32 hours.
The traditional home being built next door was still wood beams and empty window frames three months into construction and would not be completed for another nine months.
Architects and manufacturers across the country are joining forces to create customized modular homes in the same styles as long-appreciated traditional homes. Buyers make all of the decisions for the home upfront with computer-driven drafting, which saves money. Fixed schedules, shorter construction loans, cheaper labor, and green features all add to the appeal of luxury prefab homes. Approximately two dozen homes, each valued at over $1 million, have been developed in Washington and pricier suburbs.
Some residents who initially were opposed to the idea of prefab in their traditional neighborhoods are beginning to agree that there is no visual difference between the modular and traditional finished product.
Courtesy Manufactured Housing Institute
From "Mansions Go Modular as Costs, Timeline Lure High-end Buyers"
Washington Post (03/04/10) P. B1; Rein, Lisa
Wednesday, March 10, 2010
Lender agrees with appraiser: Values UP 30% in 2 senior MHP's in Santa Rosa
This is a very optimistic development for all real estate agents in the Santa Rosa area.
According to my appraiser, values of pre-Hud double-wides over 1,000 sq ft in two specific senior parks in Santa Rosa are UP 30% in the last 60 days.
As I reported earlier, the lender was very skeptical about this sudden spike in prices. It caused the appraisal to be reviewed, reviewed, and re-reviewed with a great deal of skepticism.
BREAKING NEWS:
The lender emailed me just now saying: "APPRAISAL CLEARED" !!!!
This is a 1974 Double-Wide in Rancho San Miguel, selling at $50,000. Last December, the same home would have appraised no higher than $35,000.
According to my appraiser, values of pre-Hud double-wides over 1,000 sq ft in two specific senior parks in Santa Rosa are UP 30% in the last 60 days.
As I reported earlier, the lender was very skeptical about this sudden spike in prices. It caused the appraisal to be reviewed, reviewed, and re-reviewed with a great deal of skepticism.
BREAKING NEWS:
The lender emailed me just now saying: "APPRAISAL CLEARED" !!!!
This is a 1974 Double-Wide in Rancho San Miguel, selling at $50,000. Last December, the same home would have appraised no higher than $35,000.
Monday, March 8, 2010
APPRAISER SAYS: VALUES UP 30% IN 2 MHP'S IN SANTA ROSA
Two senior parks in Santa Rosa have seen a sudden spike in prices.
Sequoia Gardens and Rancho San Miguel are hot, hot, hot.
I have an appraisal in the review process. The underwriter has contacted the appraiser questioning the report's assessment of values.
The appraiser reports an increase of 30% in the last two months in these two senior parks. The recent rise in values is noticeable in the recent sales of pre-Hud double-wides over 1,000 square feet.
The underwriter is skeptical about the sudden jump from a floor of $30,000 to a new base of $50,000. But the appraiser is defending these statistics and told the underwriter that it appears not to be an anomaly, but a trend.
In my previous posts, I have reported a sudden uptick in buyers. Recent closed sales prices now reflect this increase in activity.
The appraisal has not yet been cleared by the underwriter. It seems that my lenders are acting like they're walking on very thin ice.
Stay tuned......
Sequoia Gardens and Rancho San Miguel are hot, hot, hot.
I have an appraisal in the review process. The underwriter has contacted the appraiser questioning the report's assessment of values.
The appraiser reports an increase of 30% in the last two months in these two senior parks. The recent rise in values is noticeable in the recent sales of pre-Hud double-wides over 1,000 square feet.
The underwriter is skeptical about the sudden jump from a floor of $30,000 to a new base of $50,000. But the appraiser is defending these statistics and told the underwriter that it appears not to be an anomaly, but a trend.
In my previous posts, I have reported a sudden uptick in buyers. Recent closed sales prices now reflect this increase in activity.
The appraisal has not yet been cleared by the underwriter. It seems that my lenders are acting like they're walking on very thin ice.
Stay tuned......
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