 |
Points of Interest
As the season is upon us, it appears we are facing an unending supply of lease land properties. Why? Lots of reasons. Many of these include; inflated prices of homes, space rent increases, poor industry marketing and tourism budgets, lack of “easy access” ,the aging population, etc. It will be a few years before the demand could possibly meet the supply. First lesson of economics: High supply, low demand, prices go down. So what needs to happen? First guess: Lower supply and increase demand!
Lets look at supply. Number one, we need to get realistic about the market value of our homes. Example; if you paid 50-75K for a manufactured home 5 years ago and are under the impression that because you added a screen room and evaporative cooling, you should expect to get a few more thousand dollars or at least break even, you are experiencing wrong thinking. Just because your neighbor is asking $50,000 for their property but “they don’t have as nice of carpet or the brand new sun screens” on which you just invested $1000 (and is a year older), does not mean your home now has got to be worth $55,000. Don’t feel bad, it’s not your fault, but it is time to get realistic if you want to get out from under that space rent. Over the past 3-4 years of declining values in the land lease markets, personal property owners have spent thousands of unnecessary dollars in space rent, property taxes, repairs, insurance, utilities; all because they didn’t know or want to accept what was happening. Well folks; the truth will set you free! Literally.
Next step is determining a value for the home. You could call a professional in the industry to come out and do an honest evaluation. Beware of listing agents that will tell you what you want to hear just to get your home tied up for a 6 month exclusive agreement and use your home for a free billboard with a pretty for sale sign. Your home is worth whatever you think it is. What it will probably sell for may be a different story. Find out what other similar homes in similar communities are actually selling for. Make sure you are comparing apples with apples. Is your park progressive? Are they making their community attractive to the new “baby boomer” generation by offering activities and amenities like wellness, tennis, nutritional counseling, computer classes, dancing besides big band? “Greatest generation”, we still love you. We’ll keep the shuffleboards but let’s get low carb into the pot lucks. Is the industry catching on? Not all baby boomers are buying the condo’s on the golf course. The active retirement lifestyle and price point available in a land lease, low up keep community are very attractive to an entry level “relocatee” or “semi-retired” exploring Arizona for options.
Demand? It‘s there. One crucial element we must not forget: information access and ease of purchase/rental placement will be key. Buyers are scouting the best “lower risk” deals they can find. After all, they will want to buy something they can get rid of should they not be able to come down anymore. So now that you have a reasonable asking price, how are you going to market it? Remember a few lines up “access information”? If you are lucky enough to have someone drive in your community and happen across your “For Sale” sign, how will they remember your home? With thousands of properties for sale right now, we’re lucky if your buyer remembers whether or not they’ve had lunch by the end of the day let alone that extra insulated storage unit or dual pane windows of which you boast so proudly. You will need something to give to the purchaser that helps them remember where they’ve been and builds up the value of the home. So now, they’ve called back from that beautiful color brochure you had created with just one dilemma; they first will need to sell their home in Wisconsin. What shall you do now? Are you going to take the home off the market with a $500 earnest money deposit? Get the buyer involved. Can you say first right of refusal? What if they need financing?
“Home Only” financing for manufactured homes has become a real challenge as well. Due to the high risk of default in manufactured housing, most lenders/banks have exited the market making financing more difficult for park model and manufactured home buyers. Active Resort Properties (ARP) has become Arizona’s # one source for sales, property management/rentals, marketing and consulting to seasoned visitors as well as entry level prospective residents. With over 20 Years combined experience in this industry, (ARP) offers the leading edge of centralized information targeting the emerging baby boomer market for Premier Retirement and All-Age land lease communities. This year (ARP) has “teamed up” with Team Work Mortgage, Inc. to offer all types of financing including “home only” financing for park models and manufactured homes with interests rates as low as 7.5% OAC. With established lender relationships lower rates and flexible terms (including refinancing) are available, that otherwise could be inaccessible.
Our web site: www.azActiveResorts.com is linked directly with the Chamber of Commerce with over 600,000 hits per year. Interested buyers and renters are able to view interior and exterior color photo’s of available homes and communities 24hrs per day/ 7 days per week. FREE COLOR BROCHURES are also available at the homes site, may be sent/e-mailed and are also displayed on the Property Bulletin Board at the Arizona Winter Visitors Association office in the Grand Hotel. Property management/lease with option to buy programs are also available to help generate cash flow through rental income even while the home is actively being marketed for sale. Call today 480-218-1112 or 1-800-478-3864 for a COMPLIMENTARY CONSULTATION”.
God Bless! By Kara Holt
|
|
About Us