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Chapter 6 of 16

Pricing strategy

How to price a manufactured home when comparables are scarce and asking prices are unreliable.

2 min read

Pricing is harder here than for houses, for a structural reason: there are fewer comparable sales, and much of the visible data is asking prices rather than sale prices. Asking prices in this market are frequently aspirational, so anchoring to them produces a listing that sits.

Build your estimate from several directions and look for agreement. What have similar homes in your community or area actually sold for, not listed for? What is your home's condition relative to those? What total monthly cost does your price imply for a buyer, once current lot rent and likely financing terms are included? And what is the home worth to the community itself, if they buy homes, as a floor rather than a target.

That third question is the one sellers skip and buyers cannot. A buyer is solving for a monthly figure. If lot rent in your community has risen, or if financing for a home of your age is expensive, the price that produces an affordable monthly cost is lower than it was, regardless of anything about your home. Pricing as though that has not happened produces a listing nobody responds to.

Price it right at the start. In a thin market the first three weeks bring the buyers who have been watching, and a home that is visibly overpriced gets skipped by exactly the people most ready to act. Repricing later reaches a smaller audience.

If your home is on owned land and converted to real property, you are in a genuinely different pricing conversation, closer to residential real estate, and worth getting a professional opinion on.

Key points

  • Use actual sale prices, not asking prices, asking prices here are unreliable.
  • Work out what total monthly cost your price implies for a buyer.
  • Rising lot rent lowers what buyers can pay, independent of your home.
  • Price correctly at launch; the first weeks reach the readiest buyers.

Watch out

Pricing high to "leave room to negotiate" works poorly in a thin market. It removes you from the consideration set of the buyers most likely to move quickly.

Terms used in this chapter