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How do I find home values in my area?

I am looking to purchase a new home and have it placed on some land in Pelion, SC. We were told, by a salesman, at one of the mobile home places that we may get approved for a USDA loan but he hardly ever sees people who do actually proceed with buying a home because the USDA will not approve you for enough to purchase the home, land (if necessary), pay for delivery and setup, and all the other things that the USDA requires to meet their standards, because they would go based on what manufactured / modular homes sold for in the area in the last year. However, I was not sure if this was truth or more of a sales pitch for their in house mortgage providers.  Since I am new at this I am not sure if we should proceed with this or try to purchase and already stick built home in the area. I would just like some information to help me decide how to proceed.
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December 07 2013 - Pelion
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hudhomestore
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December 07 2013
It sounds like there would be some uncertaintys if you bought the home you were looking at? In my area we area (by law) we can not be compensated by the lender so that is probably true in your area as well. A stick built home can be better from a lending standpoint.Some banks will not loan on Mobile Homes, and some will on selective years etc. Mobile homes do not usually appreciate in value, like a stick built home would. If you are able to make it work financially, I would recommend going with something stick built.

Any realtor in your area can give a list of homes for sale in your price range. It might also be important for you to understand that when you enlist the help of a real estate agent to help you buy a home, he will get paid by the person whose home he helps you buy. In other words he works for you for free. It seems to me that it would be silly to try to buy a home without an agent when it won't cost you to use one.

Kevin Richey
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December 07 2013
Hi Devon,

I'd encourage you to talk with a local lender and a knowledgeable REALTOR there.  It would be good to ask the REALTOR to show you what homes are available in the price range that you're expecting this to be within. It would be good to know of the stick-built homes and the manufactured homes and likelihood of resale if you needed to sell in the future.  I'd, also, ask the lender if the home was a resale and the type that you're considering, can your prospective buyer purchase it with the same type of financing as you are.  (Some loans are available for new construction manufactured homes, but are not available if you were purchasing a resale home.  The reason that this could be important to know is that you could be limiting the number of your prospective buyers to purchase a home now with USDA financing if another USDA buyer cannot purchase it used from you in the future.  You'd be limiting your market for resale.)  

Please write or call if I can provide any additional info.

All the best,
Susan

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December 07 2013
Profile picture for hpvanc
Try talking to a local lender that handles USDA loans, and repost this question in the Mortgage section of this forum specifying your location to verify the validity of the salespersons statement.

If what the salesperson is telling you is true, the translation is you would be buying into a negative equity situation if you proceed to buy through their in house lender. That means if your situation changes in the next 5 or so years, odds are high you will have to make one of these 3 choices: 1) let it go to foreclosure; 2) shortsale; 3) bring cash to closing to make up the negative equity. Just because the salesperson can get the deal done, doesn't make it a financially prudent decision on your part. The same will be true on an existing stick built house.
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December 07 2013
You need an agent in the area you are looking to purchase to provide you with a detailed market analysis of the 'proposed' home.  You will need the sq ft, number of baths, basement?, Garage? etc and any competent agent should be able to furnish with with an 'as to be built' value.

Take the market analysis to the lender and let then crunch the numbers.....if the value of the finished project covers all the fees, set up, delivery etc I see no reason USDA wouldn't approve such a loan.

Good luck and I hope your home ownership dreams come to reality!! 

Steve Lawson
Associate Broker
CDPE, ABR, SRES
Hall of Fame Club Member
Platinum Club Member
Re/Max Advisors, Inc
34350 23 Mile Rd
Chesterfield, MI 48047
Cell: 586-201-2224
Office: 586-949-0949
Fax: 586-273-1520
www.stevelawson.com

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December 07 2013

We suggest that you look for a Buyer's Agent who is familiar with manufactured homes to work with.

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December 07 2013
 
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How do I find home values in my area?
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December 07 2013 | 6 answers
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