Modular or manufactured?

[Mr Rex]

All depends on the quality. There is a Handcrafted Homes modular plant here and they can't compete cost wise with site built construction in most cases. There is a definite stigma locally with mods associated with HUD code homes because the "dealers" try to blur the lines and compare apples and oranges.

If modulars were market accepted and more economical etc. the site/tract builders in your area (and nationwide) would have already made the switch and you wouldn't have this great "opportunity".:new_all_coholic:

 

[ezradams]

I'm not sure if there is an opportunity yet...much depends on the final cost estimates. The attraction of placing and selling a modular is not usually in the cost to build but the time and ease. Local stick builders (1,800SF-2,200sf) will probably make more profit but I don't have the experience working with all the trades necessary to complete a stick built home, so modular comes to mind.

I've been buying/rehabbing/selling over the past few years and have found it difficult at times to bring the properties to market quickly. "Time is money" and the modular equation may help with scheduling. I don't expect a high profit...just less unknowns and quicker turnaround.

I'll try to post after the visits. If the product doesn't meet typical market standards, we probably won't go ahead with our plans anyway.

Dan

 

[The Sheriff]

Ezradams... It's as easy as telling them apart as bending over and reading the plate on the side of the property. The plate states whether it is built to HUD code (therefore a manufactured) or some other code (modular). We have factories in Phoenix that build them side by side... One goes out as a modular, one goes out with the HUD seal of approval (manufactured). I've taken a couple good classes in my days of appraising... the best still by far was a manufactured class I took that Rich taught in Flagstaff. He even took a phone call or two a year later when I was getting my tail kicked... Highly recommend taking it to cover yourself... he gives a lot of great narrative for the form as well.

 

[Mike Boyd]

factory-built home constructed prior to June 15, 1976 on a permanent chassis and in compliance with no particular code is a mobile home.

In CA, they had a specific building code for mobile homes prior to that date. It was administered by the State Department of Housing. It was modified through the years and when HUD came out with THEIR code, they adopted it and basically got out of the picture.

 

[ezradams]

Ezradams... It's as easy as telling them apart as bending over and reading the plate on the side of the property. The plate states whether it is built to HUD code (therefore a manufactured) or some other code (modular). We have factories in Phoenix that build them side by side... One goes out as a modular, one goes out with the HUD seal of approval (manufactured). I've taken a couple good classes in my days of appraising... the best still by far was a manufactured class I took that Rich taught in Flagstaff. He even took a phone call or two a year later when I was getting my tail kicked... Highly recommend taking it to cover yourself... he gives a lot of great narrative for the form as well.

I spent Tuesday visiting a couple modular home companies. Both produce dwellings that are extremely similar to stick built. The only differences occur at the marriage wall where the studs are doubled up. (This is due to shipping requirements...must have four walls during shipping). Also, there is only one plate per dwelling and it is located by the electrical box.

According to the companies building the dwellings, they are modular and not manufactured. I agree. They are built to local codes (example: in some areas roof trusses are built to withstand different wind speeds). I was given a quote on a building for Cherry Hill, NJ and found that it would require additional support in the roof system due to location.

The only way to tell the difference between an on-site dwelling and one of the buildings we inspected were the slightly wider (8" vs. 4") doorways where the sections met. An inspection of the basement would likely show an extra set of floor supports. No way to tell on a slab.

I have reservations about the opportunity to make enough profit due to additional costs involved (transportation/set up fees/taxes). But, in the end, I am convinced that the quality and market acceptance of a modular built dwelling in this area is similar to site built. This is also based on 15 years of appraising in the South Jersey area, where modulars appear to sell without any particular marketability issues.

Dan

 

[Mystery man3]

Appraising modular homes

So if I was to appraise a modular home if there are no modular home comparables available I should use stick built houses as comparables right?

 

[BRCJR]

So if I was to appraise a modular home if there are no modular home comparables available I should use stick built houses as comparables right?

Depends on the quality of the mod. In some cases it would be correct and in others maybe not.

 

[Mystery man3]

Thank you

Thanks for the info Bill.

 

[ezradams]

Jeff,

I agree with Bill. If there is nothing else and the subject is constructed in a similar manner to stick built you have no other choice. If for some reason it is apparent that the market doesn't accept modulars, you will have a problem. This is not the case in South Jersey, but could be different in other parts of the country.

Dan