As the price of traditional stick-built homes frequently tilts to the higher side, many people have found mobile homes a considerable alternative. Judging from the estimated number (approximately 17 million) of Americans living in mobile (also known as manufactured) homes, it’s safe to assume most people are adjusting comfortably to this dynamic.
However, living in a mobile home involves a bit of a learning curve and paperwork. Therefore, this article focuses on arming prospective mobile homeowners with the necessary information about acquiring a bill of sale.
A mobile home bill of sale is a juridical document protecting the buyer and seller’s fundamental rights in purchasing a manufactured home.
A typical bill of sale for manufactured home details the technicalities involved and the terms and conditions of acquiring the home that may become handy in the future should the need arise.
In most cases, the buyer will be required to make a security deposit to the seller during the inspection phase of the transaction. Once the inspection is completed and both parties are willing to proceed, the seller uses the sales contract to issue the buyer their interest and deeds to the mobile (manufactured) home that is up for sale. Upon completion of the transaction, both parties are recommended to append their signatures in the presence of a notary witness.
A mobile home relieves the buyer of mortgage hassles they would otherwise have to worry about in traditional houses. Instead, they are treated like other tangible property such as cars, business equipment, or jewelry since they are mobile. A mobile home bill of sale should also indicate the house’s location; if the house to be bought is on the seller’s land, both parties may settle for rent, or the buyer may be required to move the property from the seller’s land.
Why is a Bill of Sale for Mobile Home Needed?
A well-documented bill of sale effectively shows physical evidence of a transaction between the buyer and seller. Taking the time to construct and fill out a sophisticated bill of sale is beneficial to both parties in the long run as it helps avert issues that may arise in the future. It is also a vital document that could come in handy in providing evidence of taxing and accounting matters.
On the seller’s side of the deal, a bill of sale is a critical tool in providing them with a security deposit from the buyer while the property is under inspection from the soon-to-be owner. In addition, a promissory note indicating that the seller has received certain funds from the buyer should be provided if possible. Finally, it also serves as a record of liability from future property obligations for the seller.
Similarly, the bill of sale proves beneficial for the buyer to provide evidence that the seller has lawfully transferred the title of the ‘home owner’ to the seller. The details of this document can also help the buyer prove the property was promised to be in excellent living condition at the time of purchase.
Do I Need a Sales Agent?
Living in a fast-paced developing age predisposes people to various ways of advertising sales of their mobile homes. For starters, people who own a mobile home may consider discussing with the management to see if they will be interested in purchasing their property. However, sellers should be open to price negotiations as most managements would want to enter a negotiation to pay less than what the seller asks.
Moreover, moving a mobile home from place to place could be expensive. In this case, you may consider hiring a broker or sales agent to handle your purchase. Take note, though, that some agents may demand up to 10% of the selling price. Therefore, unless you are equipped with the qualifications and experience of handling sales of manufactured homes, you may want to consider hiring someone with such professional qualities.
How to Sell a Mobile Home?
There are a few preparations that go into the selling of mobile homes. The most important ones include the following:
1. Come up with a reasonable price for the home
There are two approaches to selling mobile homes i e., with or without land. Unfortunately, both methods come with different asking prices. Note that a token fee will be required to evaluate the property, which is considerably affordable compared to hiring a professional to run an appraisal on the home.
However, the option of a professional appraisal could be helpful when the manufactured home is to be sold with the land, as it is within the law of many states to tender a certified appraisal of real estate purchases.
Once a decent worth of the property has been evaluated, the next step is to explore digital markets selling mobile homes to come to a reasonable asking price for your property.
2. Publicize it
Should you decide to manage the sale of your home, the first step is making plans to advertise your property. To do this, it is vital to put a few housekeeping chores in place, such as making necessary repairs and thoroughly clean the property. Next, take neat and clear photos of the places such as the interior, exterior, rooms, and other parts of the house you want to show off and make a description that has all the necessary details of the home, the year it was built, structure, roofing quality, contact information, and preferred payment options. Ensure the photos are captured with enough lighting, fixtures, and properties to make them presentable to the public.
3. Encourage the purchase of the home
There are several ways to put up your mobile home in front of prospective buyers. For starters, you may put something as basic as “For Sale” within the unit’s premises and “property for sale by owner” within the surrounding neighborhood to attract prospective buyers to make inquiries.
In addition, you may advertise your property in newspapers by contacting the company and paying for a section of the page where you want your home displayed for people to see. You must also advertise your property on digital classifieds such as Craigslist, Trulia, and property quoting sites to reach an even wider audience.
4. Display the premises and discuss the terms
If you have successfully put your property in front of your target audience, chances are you’ll get requests from potential buyers. At this stage, you want to ensure the manufactured home is in perfect condition for inspection. In addition, the goal is to make the premises as warm and welcoming as possible.
Before the prospective buyer’s visitation, ensure the property is devoid of odors and well-ventilated enough to receive sunlight. In addition, check that your roof and gutters are in good working condition and make your interior appealing by placing a vase of fresh flowers around.
Once the buyer begins to show interest, you may proceed to negotiate payments as well as the terms and conditions of the transaction. Once the buyer approves the deal, both parties settle for an inspection date. In this case, the buyer is required to make a down payment while they inspect the unit thoroughly. At this point, the seller may proceed to run the necessary background checks on the buyer if no third parties are involved in the transaction.
5. Buyer’s inspection
The next stage is for the buyer to inspect the property thoroughly. Areas, where they will be checking, involves:
- Windows, doors, and trims
- Electrical and plumbing systems.
As the seller, note that not all inspectors are comfortable with the seller being present during an inspection. Once you notice a tense atmosphere, you may want to give the buyer or inspector enough breathing space by dropping your cell number with them and leaving the unit to enable them to inspect the property to their satisfaction.
6. Close the deal
Once the inspection is complete, and both parties are willing to proceed, the next stage is to close the deal by settling for a specified closing date. On the closing date, the seller must come along with the well-furnished bill of sale to facilitate the exchange of titles and to be signed by both parties upon payment acceptance. A promissory note of the complete transaction would be a great idea if no third-party bodies are involved, such as mortgage companies. Once the necessary exchanges have been made, the seller can deliver the keys to the new mobile homeowner.
7. Register the manufactured home
The last stage of purchasing a mobile home is to get it registered. A good idea would be to contact your local Department of Motor Vehicles (DMV) to inquire about the necessary documents such as a bill of sale, a government-approved means of identification, proof of active insurance, and transferred title before going to the registration office. Note that documents for mobile home registration may vary from state to state.
Mobile Home Bill of Sale Glossary
Every transaction has some technical terms associated with them. Below is a list of the vocabulary that provides better context when dealing with a mobile home bill of sale.
A bill of sale cannot be valid if it does not contain the seller’s information. Therefore, the document should spell out the full name of the seller. It should also define other contact information of the seller, such as their complete residential address, telephone number, zip code, and email address.
This indicates the economic value for which the manufactured house is being sold. The purchase price may or may not include the prices of the furniture and amenities in the house. The purchase prices of mobile homes may vary to an extent, depending on the living condition of the property.
The buyer’s information should be written in the same manner as the seller’s. For example, the buyer’s full name, which is displayed in a valid ID, should be provided in the bill of sale, as well as their current residential address and other contact information.
Mobile home information
This relates to all relevant details of the manufactured home as listed below:
- Manufacturer: This refers to the body responsible for using climate-controlled resources to fabricate mobile homes to ensure the houses meet all the local, state, and federal requirements.
- Model: This is the architectural representation and details of the specifically manufactured house. The model of the house should not be confused with the manufacturer, as the former is nothing but a subset of the latter.
- Serial number: This is a unique number assigned to each mobile home by the manufacturer for identification and inventory purposes. A typical example of a serial number is NBH FL 325174 B, where the first three alphabets indicate the abbreviation of the manufacturer, the following two alphabets indicate the abbreviation of the state of manufacture, the multi-digit serial number, and the section code (for multi-section homes only. A = 1, B = 2, …)
- Size: This refers to a manufactured home’s dimensions i,e. length, width, and maximum height that can be safely built and legally transported from the manufacturing site to the home site. Most home sizes come in single, double, and triple wide shapes.
- Year manufactured: This provides specific information on the year the mobile home was manufactured. The Department of Housing and Urban Development (HUD) makes it mandatory for every house built since June 15th, 1976, to have a data plate that provides a great deal of information about the manufactured home.
- Location of home: This represents the geographical position of the manufactured home. Despite their relatively low costs, the geographical location of a manufactured home plays a significant role in its price value.
Seller and buyer’s signatures
This represents the verification and proof of both parties using their hands to write their names in their unique ways, indicating that they fully understand the details and willingly agree to the terms and conditions of the bill of sale.
Notary public’s signature
A notary public’s signature is a means of verification such that the notary assigned by the state government to witness the signing of legal documents and administer oaths confirms the authenticity of the bill of sale in the presence of both the buyer and seller to deem the transaction valid and 100% legal.
Mobile Home Bill of Sale Forms
Judging from the details provided above, one can tell the tremendous amount of paperwork and time it takes to create a mobile home bill of sale, let alone the price to hire a professional to make one. However, getting a well-furnished mobile home bill of sale doesn’t have to be an overwhelming chore as we provide free, customizable, and downloadable bill of sale forms for professional use. We do all the heavy lifting of paperwork and writeups while you choose the details that go into the form as you desire, after which we provide you with a downloadable template of a well-drafted mobile home bill of sale.
Given everything discussed, a mobile home bill of sale is illustrated as a legal document that affirms the transaction between a mobile home buyer and a seller. Once payment has been received, the buyer assumes full ownership of the property. The mobile home bill of sale can be made by hiring a professional to mock one up or getting a customized and downloadable template online as long as the form contains all the necessary information, as listed in the sections above.