Understanding Your Mobile Home Blue Book Value
Most people hearing the phrase "Blue Book," tend to think of those small, compact, blue guides that list the prices for new and used cars, trucks, boats, motorcycles and mobile homes. Unfortunately, the Kelley Blue Book Company stopped producing their highly-regarded Manufactured Housing Guide years ago.
Today, most experts refer to The NADA Manufactured Housing Appraisal Guide to identify current valuations fo mobile homes. Though it's still widely referred to as the mobile home blue book value, the NADA Guide provides book values based upon their own mathematical formulas. Below, you'll learn how the resale value of your manufactured house is calculated, whether it's always accurate and if you'll eventually need an appraisal anyway.
How Is The Book Value Calculated?
The entire manufactured housing industry uses the NADA formula to calculate how much your mobile home is worth. Though the formula they use is proprietary, it's based mostly upon the make and model of your home, how old the home is and its size. However, if the book value relied only upon those elements, it would often reflect an inaccurate valuation. Many mobile homes have upgraded accessories that can increase the resale value of the home. Also, the condition of the house and its location both play a key role in determining the worth.
Is The Book Value Always Accurate?
Assuming that everything about your factory-built house is taken into account, the book value should always be accurate. Moreover, as long as professional appraisers know how to use the NADA Guide's formula, the mobile home's appraised value should always be the same. That is, one appraisal should match another. That said, book value is designed to yield a valuation based upon "normal" circumstances. Because everyone's circumstances are unique, the value of your house may not perfectly reflect the value listed in the NADA Guide. The more unique your circumstances, the greater chance there is that the valuations will vary.
Will I Still Need An Appraisal?
Even if you know the book value of your mobile home, you'll eventually need to have a professional appraisal completed if you decide to sell your home. This is due to lenders, banks and other financial institutions requiring the appraisal. Typically, the service is paid by the potential buyer, but it can also be the responsibility of the seller.
If you're merely curious about the resale value of your manufactured home and you don't have any plans to sell it, obtaining the book value should suffice. You can have this completed online. Remember, the more information you provide, the more accurate the book value will be. When the time comes to sell your home, however, you'll likely need a professional appraisal.
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