Modular Versus Stick-built

[Mark K]

I think a modular or factory built home can be every bit, and even better, than a stick/site built home. I suppose they could also be worse. What about a poorly built site/stick home? Is anyone on the lookout for those? Because few of these homes exist, it is difficult to measure the impact on value or marketability as compared to traditional builds.

There are some low quality stick builders in this area so its not too difficult to find these sales. I did a study a few years back on the sales price difference between low end stick-built and mods and found it to be about -10% in favor of the stick built. In reality, the mods were probably at least equal in quality but the market hasn't accepted mods as equal, hence the difference.

Problem is...as I mentioned earlier, the mods cost as much or more once the mod dealers charge for all of the 'extras'.

 

[Deleted member 128537]

[QUOTE="Terrel L. Shields, post: 2872634, member: 67077]

I don't see that here. See pix above

I think we all know there are exceptions; this being one of them.

I've seen many mods that were every bit as attractive and functional, if not more so, as most of the 'cracker box' looking, cookie cutter production/tract homes.

From what I've encountered, a 'nice' mod home in this area costs nearly the same as a modest custom built home. The mod sellers charge a fortune for the extras like driveways, sidewalks, well, septics, crawl spaces, basements, decks, porches, garages, etc. By the time they're finished with you, you've got as much or more wrapped up in the mod. And you still have the 'stigma' of it being a trailer.[/QUOTE]

I haven’t seen that here. We have one modular builder in my area that also does site built. Their costs for the extras is the same as it if was a site built.

 

[TRESinc]

I think a modular or factory built home can be every bit, and even better, than a stick/site built home. I suppose they could also be worse. What about a poorly built site/stick home? Is anyone on the lookout for those? Because few of these homes exist, it is difficult to measure the impact on value or marketability as compared to traditional builds.

sure, anything built by Ryan

 

[Overimprovement]

This thread is another perfect example of why appraising needs to only be done by LOCAL appraisers in their own market. Because only the local appraiser will know their own market reaction to things like modulars, which apparently have different stigmas or not in different markets. It can depend on builder quality, local contractor quality, and just overall market participant sentiment, whether good or bad.

Its not about what things SHOULD sell for, its simply about what they DO sell for. Local knowledge is still KING!

 

[Tim Hicks (Texas)]

Everything is relative to the market. There is on-frame and off-frame modular homes. Around here, on frame modular are most similar to HUD code manufactured homes. In fact, they go down the same line at the factories. So when discussing modular homes, it is important to identify the type of modular home. We see very, very few off frame modular homes in the this area. I did appraise one off frame modular this year fronting a lake and it was quite similar to the other small site built homes in the area, but I could not say it was superior in quality in any way.

 

[Terrel L. Shields]

only be done by LOCAL appraisers

Well...maybe but the issue is what kind of modular do you see. Personally, our Realtors tend to ID double wide HUD code houses as "modular". Never seen one of these that wasn't simply HUD code. Modulars here were basically panelized construction, pre-engineered trusses, and mostly erected by a crane and local carpenters. Cost maybe 5-10% less than conventional in the ones I know. More common here would be steel frame, metal clad houses, or post and pole construction, again deceptively similar to conventional frame on slab.

 

[Mr Rex]

Modulars are the greatest thing since sliced bread and peanut butter. No question why they drive the market ... (the sound of a screeching halt) The market has spoken. Umm, I think appraisers are supposed to pay attention to the market..

 

[Terrel L. Shields]

The market has spoken

Sometimes, the appraiser cannot differentiate the modular from the stick built and thus speaks volumes there too...

which one(s) are modular and which one(s) are post and beam? Can you tell if you were not told? What's the market going to say?

 

[Riick]

After looking into them, and getting cost, delivered and put onto foundation, back around 1998, there was a very significant cost saving -versus- what our cute little cost handbooks showed us for stick-built.

• Identifying Modulars: Easy, the marriage-wall, double the width of trim where sections meet.
• Public perception: Cheaply built homes / Mobile Homes
• Truth (afaic): Easily better built than stick homes, watched construction in factory. Everything was nailed **and** glued together so it wouldn't crack or otherwise come apart on delivery trucks.
• Biggest Problem: Too many built with panelling instead of drywall, use of cheap 2" baseboard trim that screams Mobile Home, and use of *cheap looking* in-house kitchen cabinetry and mobile-style bath fixtures.

 

[Terrel L. Shields]

Public perception:

Again look at my pictures. Two of those are modular. One is post and beam. What you describe is a glorified mobile home built to local code. You will see no marriage walls nor cheap fixtures, paneling, etc. in these. They are all sheetrocked, with custom cabinets installed after the interior is finished. Cost about $10/SF less than 100% stick built.