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This is similar to the way traditional site-built homes are constructed. Different manufacturers offer modular homes in different layouts, sizes, and construction timing. Similar to site-built homes, they are titled as “real” property so that homebuyers can have the same legal rights and protections, same financing options, and same tax treatment.
Then your modular home needs to be built by a quality-conscious manufacturer and general contractor and located in a desirable community. If you do all of these things, you will do very well on your modular resale value with both appraisers and customers. In other words, neither form of construction has an advantage when it comes time to resell.
Is there a Kelley Blue Book for mobile homes?
Modular homes are treated identically to site built homes by banks and other lenders for the purpose of financing and appraisals. Similarly, there is no difference in insuring a modular home compared to a site built home. Calculate the average sales prices of the comparable mobile homes to determine the median market value of a manufactured home of similar age, size and condition. Use the median market value to establish the market value of the subject home, adjusting upward or downward as required for condition and age. Appraisers must use MH Advantage homes for the comparable sales when available. Our reporters create honest, accurate, and objective content to help you make decisions.
Still, critics point to the relatively high initial price of the units themselves as a reason to think carefully before buying. Modular construction is one way to keep your initial overhead investment in a home reasonable. Fortunately, Newfound and Labrador boasts several reputed modular home builders.
Can you put hardwood floors in a manufactured home?
For more project-specific guidance, connect with one of our prefab home experts for free here. Estimating the resale value of a modular or site-built home depends on several factors such as age, location, and condition of the dwelling. One of the major reasons why a modular home may be valued differently than stick-built homes is because of the negative stigma surrounding modular construction. Since modular homes are not highly concentrated in many housing markets, it creates the impression that they do not appreciate at a similar rate as homes built on-site. In reality, modular homes appreciate at the same market rate as site-built homes in the same neighborhood. Both mobile homes and manufactured homes are prefabricated structures, built in a factory on a permanently attached chassis before being transported to site.
In general, though, there is no difference in a modular home value vs. stick-built. Both stick-built and modular homes are made to last and tend to appreciate value over time. This means, if you ever decide to move, you may be able to sell your home for more than you paid for. Research shows that they are even better prepared for storm-related damage than traditional homes because of how they are built. As a result, modular homes are likely to survive hurricanes and tornadoes with minimal to no damage.
Not All Builders Have Experience With Modular Homes
You could easily spend $250,000 or more on a manufactured home at the other end of the spectrum. These homes are usually much more extensive, often with two or three bedrooms and baths. However, there are many ways that you can improve on this natural appreciation.
Most people might think that manufactured and modular homes are the same, but they aren’t. Both styles are prefabricated, but one appreciates while the other depreciates. When it comes to the finished home, modular homes are the same as site-built homes. As we discussed in our other blog post, the difference is in where and how they are built. If you’re interested in learning more about a modular home or purchasing one for yourself and your family, we’re ready to talk with you. The outcome will be the same, regardless of how the home was built.
Modular Construction FAQs
Modular home prices are $50 to $100 per square foot for the base unit only. Modular homes are constructed off-site in segments and assembled on-site on permanent foundations. Size is also a consideration, as manufactured homes tend to be smaller and more limiting in terms of options.
In the last five years, their value has increased by an average of 5.7%. Compare that to the sharp decrease in value for manufactured homes, and it’s easy to see why modular is the better investment. Modular homes increase in value similar to what you see in traditional stick-built homes. That means, depending on the status of the real estate market, you should see the same highs and lows as other homes in your area. Modular homes are built on a solid foundation, so they will not run into the same problems.
All information is presented without any warranty or guarantee to you. A factory-built home starts out as sections that have been built in a climate-controlled area. The finished sections are transported to the building site and then assembled with cranes.
In addition to quality building practices and materials, each build is thoroughly inspected. Once the home is attached to the foundation on-site, you’ll need to convert the construction loan into a longer-term mortgage by going through the home loan process. The average modular home could cost between $90 and $120 per square foot to build. But the more complex your design and layout, the more your modular home could cost. Specialty services like plumbing and electrical work could also add to the base price of your home. Modular homes are permanent structures and, like manufactured homes, are generally assessed as real property.
Construction – modular homes are constructed in a factory but assembled on-site, while manufactured homes are built and assembled at the factory. This difference has an impact on the final costs of the house, as well as its overall quality. Buying a home is a major financial and life milestone for people looking to settle down with their family or loved ones. Modular homes that were once considered of cheap quality have grown in popularity over the recent years competing with regular homes built from the ground up. Understanding the difference between modular homes and traditional homes before building or buying your house can help you make decisions that you will appreciate for a lifetime.
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