The majority of Americans believe buying a home is a wise financial decision — 84 percent, to be exact, according to a recent survey. Why is this such a widely held belief? In short, buying a home brings the potential for home equity and appreciation into your financial situation. For some, including first time homebuyers, this can be confusing.

First, let’s explain home equity. To calculate home equity, take the total value of the home and land and subtract the mortgage loan amount outstanding. For example, if your home is worth $150,000 and the mortgage loan balance is $125,000, you have $25,000 in home equity.

Home equity isn’t like cash on hand, but you can realize the money if you sell your home. Home equity can be increased in two ways: paying down the home loan principal balance or improvement in your property value.

Home appreciation refers to the increase in home value over time. Many believe that prefabricated homes do not appreciate as well as site-built homes.

A recent report from the Federal Housing Finance Agency (FHFA) suggested that manufactured home price trends have been broadly similar to those of other homes.


While the index is experimental, an industry group commented that, “The FHFA’s important new MH index suggests that prefabricated homes that include the land may actually appreciate at rates similar to site-built properties.”

While property appreciating is never a sure thing, here are five simple steps that may help the value of your prefabricated home.

Affix your prefabricated home to land

Permanently affixing your home to land and converting to real estate may help the property appreciate over time.

Perform routine maintenance

Make a checklist and stay on top of your regular home maintenance tasks. Changing your air filter, clear dead plants from the house and other routine maintenance will keep your home performing well over time.

These quick routine checkups can help avoid larger plumbing and appliance issues down the road.

Add curb appeal

Pay attention to both the inside and outside of your home. Maintain your yard and landscaping, pave your driveway, apply a fresh coat of paint, change the color of your front door or add greenery. These are quick ways that may help boost your home’s ability to sell.

Fix the little things


Neglecting a leaky faucet or not cleaning your gutters can cause bigger and more expensive repairs later. Tackle these tasks up front to keep your home in great condition and help prevent larger unexpected issues.

Invest in upgrades

Choosing upgraded materials and features for the kitchen, family room and bathroom will make your home more valuable.

Common upgrades could be a stylish kitchen backsplash, new vanity features or energy efficient upgrades.

Follow these tips to potentially help your home’s value, and if you’re looking to capitalize on your investment in your prefabricated home.

Owning a home can change your family’s life for the better. If you are interested in getting started, Vanderbilt Mortgage offers home and land financing options.

For reference, see: Henry, Cole, 84 Percent of Americans See Homeownership as Good Investment, Affordability a Growing Concern on the National Association of Realtors’ website,


This article is courtesy of Brandpoint.