How to Negotiate the Price of a New Mobile Home

Photo of people negotiating the price of a home

Over the past few years, the popularity of manufactured or mobile homes has increased, largely due to the value they provide over “site-built” homes. Today, over 20 million Americans live in manufactured homes, and they represent roughly one in ten new constructions.

Naturally, this may lead buyers to wonder about whether they might be able to negotiate during the buying process. This article will answer a few key questions about the affordability—and negotiability—of manufactured or mobile homes, including what you can expect, as well as some basic negotiation tips.

How Much Are Home Sellers Willing to Negotiate?

It depends on several different factors, including:

  • Market Conditions: Is it currently a buyer’s market? A buyer’s market basically indicates there are more homes for sale than there are active buyers. This type of market typically gives buyers an advantage. Of course, the converse is also worth noting: if you’re in a seller’s market—more willing buyers than there are homes for sale—it will be harder to negotiate.
  • Condition of the Home: If you’re buying a pre-owned home, especially if it’s on the older side, you can usually negotiate price based on the extent of repairs that it needs.
  • Comparable Sales: The more you understand about what comparable homes are being sold for, the better position you’ll be in to negotiate a competitive price.

Ultimately, each transaction is unique. In addition to a home’s price, you might also be able to negotiate details like closing costs, required repairs, and so on.

Are Mobile Home Prices Negotiable?

Yes, similar to site-built housing, the price you pay for a new mobile or manufactured home is often negotiable. The extent to which you might be able to negotiate a lower price depends on a wide range of factors. For pre-owned or for-sale-by-owner homes specifically, some of these are related to the property itself (such as its location, condition, and how long it’s been on the market), while others depend on the seller’s disposition. When buying a brand new manufactured home, however, you might not have quite as much negotiating power.

How to Negotiate the Price of a Manufactured Home: What You Need to Know

The main thing you need to know about negotiating the price of a mobile home is that every transaction will be different—and impacted by several different factors. With a newly-built manufactured home, the price will depend on features and amenities, add-ons, and any customizations. Each homeowner, too, is unique; some will set lower prices and negotiate less, while others might start with higher starting prices with the expectation that the buyer will want to negotiate.

A few tips for getting the best price possible include…

  • Researching market prices, including what similar homes are either on the market for or have sold for
  • Securing financing early, so you can set an appropriate budget when looking for homes to buy
  • Asking for inspection details if you are purchasing a pre-owned home, or to inspect the home yourself in order to uncover potential negotiation points
  • Making a list of what features and options are important to you and your family so when you talk to a home retailer you can eliminate unnecessary expense
  • Finally, if you are purchasing a home in a manufactured home community, talk to the manager of the community about possible home or rent promotions. Not all communities offer promotions, but some do and it never hurts to ask

For many buyers, the idea of negotiating can be intimidating, especially since there are so many variables involved, ranging from the location to the availability and condition of homes on the market.

Buying a new or pre-owned manufactured home through MHVillage removes a lot of potential anxiety from the process. You can set a specific budget and then fine-tune your search to align with exactly what you’re looking for. It’s also easy to compare different options based on high-quality photos and listed amenities, prices, and more.

How Much Should You Spend on a Mobile Home?

It’s really dependent on what you can afford. Whether you’re looking at an on-site home or a mobile home, a common rule of thumb is the 28/36 rule, which states that “you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts.” For more detailed insights, using an online calculator to determine what you can afford to spend is an excellent first step for any buyer.

If you’re wondering whether a given price is reasonable or not, it helps to know what these types of homes typically cost. As a recent report from the Manufactured Housing Institute shows, you should expect mobile or manufactured homes to cost less than their “on-site” alternatives. For example, research shows that while the average cost of a site-built home exceeds $400,000, the average cost of a manufactured home comes in just below $125,000. Comparing these costs on a per-square-foot basis, manufactured homes cost roughly half as much, at an average of $87/square foot (compared to $166/square foot for site-built homes).

What Do I Wish I Knew Before Buying a Mobile Home?

Experience is often the best teacher, and many of the best tips for buying a manufactured home come from people who have previously navigated the buying process. Here are a few tips from experienced buyers:

  • The overall home price isn’t necessarily the only negotiating factor. In many cases, you can also negotiate repairs, closing costs, and more depending on if the home is new or pre-owned.
  • Acting too eager to buy reduces negotiating power. If a seller knows you’re dead-set on a particular home, they’re less likely to negotiate.
  • Moving too quickly—or waiting too long—can cost you a deal. This is one of the more subtle aspects of negotiation that’s as much about your disposition as a buyer as it is about what you’re willing to pay.
  • Getting approved for financing before shopping increases your buying power. Pre-approval helps you to firm up what you can afford to pay, and helps position you as a serious buyer that’s ready to make a deal.
  • Working with a professional is a smart idea, especially for first-time buyers. They can help you evaluate opportunities, consider advantages and disadvantages of different homes, and make the best decision possible.

Hidden Costs of Buying a Mobile Home

When considering buying a mobile or manufactured home, it’s important to be aware of the “hidden costs” since they can have a significant impact on what you ultimately pay. These can include…

  • The cost of land: If the home isn’t sited, you will need to consider the cost of the location, whether that means buying a permanent plot of land or exploring mobile home communities.
  • Land-lease fees: If you opt to reside in a mobile home community, instead of paying for land outright you will pay a monthly fee often called lot rent (which varies based on the location, amenities, and other factors).
  • Transportation: If you are purchasing a new home which has not yet been sited, there will be a cost to transport the home from the manufacturer to the home site. You can expect it to cost anywhere from a few thousand dollars to $10k or more.

For more information, check out our recent article, 8 Costly Mistakes that Mobile Home Buyers Make (and How to Avoid Them).

Find Great Deals on Manufactured Homes for Sale at MHVillage.com

Whether you’re interested in seeing new or used manufactured homes for sale, start your search today at MHVillage.com. Since our formation over 20 years ago, we’ve grown to become the nation’s #1 place to buy, sell, or rent manufactured and mobile homes. Thousands of manufactured home professionals and homeowners list their homes for sale on MHVillage. We make it easy for you to research homes available in your area and contact sellers for more information—visit our website to start your search today!

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