Park homes have a variety of pros and cons that your customers will certainly weigh up before they make their purchase, or opt for an alternative. From space and cost to community and investment, they will have a lot of questions for you as a park owner, to make sure they will be happy living in a mobile home permanently before they hand over their long-saved nest egg.
We’ve taken a look at a range of pros and cons and highlighted how you can use the former to your benefit and how you can address concerns around the latter.
Pros
Accessible, single-storey homes
Residential park homes are ideal for people with lower mobility, as everything is across one level. These people may have limited options when it comes to finding new homes, i.e. two-storey homes are impractical for them, as are flats that are in blocks not serviced by an elevator.
Demonstrate the accessibility of homes on one level through photos, videos and virtual tours, as well as dedicated information packs for those with mobility issues.
Community feeling
Most park home communities have a minimum age of 55, so residents will be of a similar age and in a similar life stage to each other. Having a neighbourhood of similarly-aged residents makes it easier to foster a community feeling.
This will often happen organically and can also be boosted by creating or encouraging social clubs and events. Common interests among residents may include gardening, walking, woodwork and activities with their grandchildren.
Secure communities
The extra security that comes with many park homes, in the form of gated estates, CCTV and on-site security, is an appeal for many, particularly for grown children of more vulnerable or nervous residents.
Highlight these security measures to those who may be concerned about moving to a new area, or perhaps for those who are living alone for the first time after being widowed and moving out of their marital home.
Smaller and more manageable than family homes
Most park homes are single-storey and up to a size of 20×6.8 metres, so they are more modest than typical family homes that over-55s may be downsizing from.
This smaller footprint means there are fewer rooms to clean and heat. Particularly when downsizing from much larger homes, park home residents will enjoy only having to keep on top of one bathroom and one or two bedrooms.
Cheaper to run
Because of their more compact size, park homes require less energy to keep warm, with many new homes being very energy efficient, and they are usually in the lowest band for council tax. Gas and electricity are bought directly from the park owner, however, these utilities are capped at the market rate by law.
Include a breakdown of average running costs for the home, and an energy efficiency rating for your park homes. Detailing the central heating, double glazing and carpeting can also be beneficial here.
Cheaper to buy
With park homes starting around the £70,000 mark for a new home and £40,000 for a second-hand home, they are significantly more affordable than traditional homes. There is also no stamp duty to pay on a park home, saving you more money.
The savings that owners make from switching from a brick-and-mortar home to a park home can be used to fund their retirement and live more comfortably. It is worth highlighting to potential customers that the lower price point does not mean lower quality, by showing them the mod-cons that come with your park homes.
Location, location, location
Park homes are often located in the countryside and coastal locations, away from city noise and often nicely landscaped. Many include amenities such as bowling greens, ponds and walking trails, as well as security gates.
As mentioned above, the cheaper purchase price and ongoing running costs are lower than that of traditional homes, so prospective customers may now be able to buy in locations they previously considered outside of their budget, such as the Lake District or Devon and Cornwall.
Highlighting these features to your customer base emphasises the peace and quiet that comes from park homes, out of the hustle and bustle of town life, for a more relaxed environment and pace of life.
Relocation, relocation, relocation
The benefit of many (although, admittedly, not all) park homes is that they can be moved. Assuming your park permits this, and the type of park home is built for portability, residents can move their homes; this may be to a different location in your portfolio, perhaps nearer the sea, or nearer to their family who can help them if they can no longer live fully independently.
Showcasing this flexibility to potential buyers is great for helping to sell to those who are worried about being tied to one place or being far from family.
Cons of park home living
As with anything, there are some potential drawbacks to buying a park home – however, these are all surmountable. It’s simply a case of identifying what is important to the customer and highlighting this with regard to the possible issue.
We’ve taken a look at some of the key downsides of park homes and detailed ways you can address these with cautious potential customers.
They don’t keep their value
The land that a park home is on remains the property of the park owner which is leased to the occupant. Because of this, the property doesn’t have a formal legal title with the land registry and their value isn’t affected by typical property market forces; i.e. a freehold or leasehold property will gradually increase house prices over time, but park homes won’t.
The benefit of park homes has never been in their investment but in their return. Residents who move into park homes out of more expensive bricks-and-mortar homes will be releasing equity that they can use to make better use of their golden years; freeing up cash that no longer needs to be tied up in property and can be spent on holidaying, reducing time spent at work or retiring early, and spending time with loved ones.
Emphasise the quality of life that a new resident will get in lieu of property investment.
They can’t be mortgaged
Park homes have no formal legal title with the land registry because they have no ownership of the land, through freehold or leasehold and, because of this, mortgage lenders won’t lend.
While this is certainly true, it doesn’t have to be a problem. With the lower purchase price (and lower running costs) of a park home, this is less of an issue than with traditional homes. Also, for many, the money made from selling their former home will be enough to cover the costs of buying and, where applicable, redecorating their new park home.
Remind your customer base of the lower costs of park homes, the lack of stamp duty and the savings they’ll make over time through lower monthly bills, as well as the nest egg they’ve built up by paying off their previous mortgage.
Of course, if you have your own financing plans or offers for customers who may not have the full price in cash, be sure to communicate these to potential residents.
They require maintenance
A well-maintained park home can last up to around 80 years, so it is, of course, in your interest to encourage residents to keep their homes well taken care of. Don’t let this put off potential residents, because the reality is all homes require maintenance, whether that’s carried out by the occupant themselves or they pay someone else to do it.
Once the topic of maintenance comes up with a prospective resident, outline the various maintenance requirements that park homes on your site have as well as the options each member of the neighbourhood has. These typically include: carrying out repairs themselves, hiring approved or preferred tradespeople, or joining your maintenance and repair scheme, if you have one.
Remind potential occupants that every home requires maintenance and that they can manage that maintenance in whichever way suits them best, emphasising the options rather than the requirement.
Selling fees
Some park home buyers are anxious about fees should they decide to sell up and move on. It is worth addressing these concerns with the customer by explaining the circumstances under which a fee would be payable, and how much that fee would be.
Generally speaking, those residents who choose a park home on your site as their final home will have no fees to pay. While discussing this is a bit morbid, it can alleviate concerns for some.
How HBB Solutions can help
If your prospective customers are still on the fence about a park home or are having trouble selling their current home, you can suggest a part-exchange scheme with us. It completely eliminates the risk of a failed sale and makes the process much smoother for your new residents.
Making us your PX partner means not only will your customer have support throughout the entire process, but you will too. Our specialists take care of the entire customer management process, including direct liaison with customers to perfect their PX packages, leaving you to focus on developing the business and making new sales.
Get in touch today to find out more about PX for park homes.