When it comes to teeny houses, the resale potential is not very good. One major reason for this is simple: Only a tiny slice of Americans are interested in living in a tiny home. If there isn't a huge supply of buyers, there won't be a lot of demand, and prices will stay flat. Resales are also affected because many banks don't consider tiny homes real homes, and so won't offer a mortgage for their purchase. While most tiny-home owners pay for their homes in cash, a fair number do need help with financing. Even when banks do consider tiny homes true homes, they may not be willing to go through the effort to draft a mortgage if your loan is small — say, $30,000 — because they wouldn't make enough of a profit by doing so [source: Rafter].
But the news isn't all dire. Tiny homes can be sold. As with selling any home, though, there's some strategy involved. Small-home buyers are looking to downsize, yes. But they still want a home that feels roomy, and incorporates space-saving features. So if your place is on the market, make sure to showcase your storage space. If you don't have that much, you can add to it with easy-to-install space savers such as hanging pot racks. It also helps to create an inviting outdoor living space, which actually helps the inside look larger, too. And since many tiny-home buyers are interested in energy efficiency, make sure your home has those features, or add some before putting it up for sale [source: Colley].