A Re-Look at Real Estate -- Mar 22, 2016

As I mentioned in my last post from here in Payson, AZ, I am parked in a rather unique little community.  It is unique relative to many places I have visited and lived.  It may or may not be unique to real estate in your area.  Either way, I think this community shows us that there can be a misconception of certain types of housing….specifically, “manufactured homes”, “mobile homes”, and “trailer homes”.

Historically, in many – if not most – areas of the U.S., this genre of housing is not considered a “winner” when it comes to overall appreciation.  Yes, the property value or lot value may appreciate to some degree, but the dwelling itself often depreciates...and the lot will usually only take you so far. This is based primarily on the materials used to construct these homes…and their “foundations”.  They are not built like your traditional “sticks and bricks” housing.  The general consensus is the quality of construction is substantially less stable than your typical stick home, therefore, a big loss in value. No matter how you cut it, the construction differences are a truth that is hard to deny.  

However, with this said, I will attempt to show you that misconception and overall negative real estate “advice” about these structures is not taken to heart in this little community. It is just a block or two from all the main “goings on” in Payson….a town with a population of about 15,300.  Payson is about 1-1.5 hours northeast of the well known [and quite expensive] cities of Scottsdale, AZ and Fountain Hills, AZ. 

This community is dotted with a few “sticks and bricks” homes…not particularly “fancy”, but traditionally built.  There are probably about 55-65 lots here…some larger than others, but overall, the homes are close together.  The majority of homes are “manufactured homes” which have been here probably about 20-25 years or more.  So, there is nothing new about this area to enhance values.

Now….let’s look at some examples of what I’m talking about….

This home has had a nice screen porch added...

This house was being worked on last summer.  It needs work, but has potential.

No one is living in it yet, but it is on a quite large corner lot and has a small addition on the back.

This home is well maintained and enclosed with a chain-link fence which is 

common here and not frowned upon at all.

Many homeowners here have dogs!

What's the point??

This 3 bedroom/2 full bath manufactured home is a good example of my point of this blog.

Last summer it sold for $65,000 and needed massive work.  The buyer put maybe $25,000

into it, including a new furnace and A/C...new baths and new kitchen, plus overall "fixing".  

He flipped it in December for $140,000.  Do the [profit] math!

I had a tour and the renovations were masterfully done...nothing "cheap" about it!

The manufactured home below is currently for sale for just under $140,000.  Nothing has been done to it and no one has lived in it since it was purchased about 2 years ago for approx. $111,000.  (Again, do the [profit] math!)  It has a double garage in the back and doesn't need "renovating"....just some updating....to make it a really great space.  Two "sticks and bricks" homeowners within the community are quite interested in it and totally agree with the asking price. Just to show, selling their stick home to purchase a manufactured home is totally realistic for them!  They love the lot, the fenced back, the garage and the single level living with a great layout.

The stick house next door to the above manufactured home is going through a major renovation and will probably appraise for $200-225,000.  The fact it's neighbors are a manufactured home and a somewhat dilapidated mobile home has no affect on it's potential value.

A few more examples....

This home just sold for somewhere between $200-220,000!

There are a few typical "mobile homes" -- some better than others.
 This one is kinda cute in it's own way, albeit a little cluttery.

So, there you have an overview of this little community.  For most, it is year-round living with four seasons.  For others, their homes are second homes to escape the summer heat in the Phoenix valley.

Often when we are on vacation, passing through small towns and communities, we say, "Oh...this looks like a nice little town...maybe we could get a place here sometime".  Well....research these types of neighborhoods. What you might initially think of as a less than optimal area because of general consensus commentary, could very well be a good investment for a "flip", a second home or eventual full time living. These homes are easy, single level living as we get older.  Most are convenient to shopping and services.  Don't judge a book by it's cover!

The other type of housing here are birds' nests!  They love the pines!  This little house finch has been working day in and day out on her new home!  Her tree of choice is about 18" from my window. 

The male is reddish in color.  He's not much of a builder but he guards the doorway!

I hope you enjoyed the tour!  The weather here is still perfect.  Nikko and I are enjoying it very much!

As always, thank you so much for your purchases through the Amazon link here on my blog.  Every order, large or small, is appreciated!

An Amazon Gift Card -- A gift that can't go wrong!

Speaking of guarding, Nikko sleeps next to me with his head propped on a pillow at the window.  He pushes his head through the curtains so he can see everything going on out there in the dark.  Any movement or unusual sound provokes a mean growl or ferocious barking.  I feel safe!