Modular vs. Stick Built.difference marketability wise?

[Couch Potato]

Modular (pre-fab) homes constructed with 2X6 construction, versus a typical on-site constructed home; how does the market see this and is there a difference as far as what I should be reporting. Have seen some modulars built better at the factory than on site.

Thanks,

Kathleen

You should be reporting the relevant facts as you know them. It is not a question of how "the market" sees them. It is a question of how "your market" sees them. It is not a question of physical reality, but local market preferences. Does knowing part of the construction process occurred in a factory alter the perception of a typical buyer in your area? Are buyers in your area well informed or ignorant? People pay money based on what they believe is true.

 

[Tim The Enchanter]

It is not a question of how "the market" sees them. It is a question of how "your market" sees them. It is not a question of physical reality, but local market preferences.

Exactly. Visiting relatives in the rural SE part of AZ, almost every house looked to be Manufactured. Just driving around and reading some ads, your big choice is an existing Mfg home, or buy a few acre site cheap, and have one trucked in.

There were a few communities advertising "no manufactured" or "site build only". So maybe some people are pickier than others.

 

[Lawrence R.]

Wow, Cp!

When you aren't being sarcastic, you know a thing or two!!

Truth is there are as many variations of quality in mods as there are in site built.

Your market will react noticeably and accordingly

 

[nauthead]

Is it an on chassis or off chassis modular? If memory serves correctly on chassis mods are not eligible for Fannie Mae financing. Could make a difference in market acceptance.

 

[Kevin A. Spellman]

My service area pays less for a modular home. The typical scenario is the acquisition of land and then construct a modular home. When the re-sale occurs the price is always lower. The vinyl siding, trim package, windows and the inexpensive finish create the penalty. The dry modular without a kitchen, siding and flooring carries a higher price as the introduction of higher quality finishes can exceed the on-site construction products.

 

[Wayne Tomlinson]

Larryroscoe has it right.

To read this thread, one would think that there are no crappy built on-site construction.

I have sold modulars, I have sold new construction site built. The place of construction is not the criterea. The quality of the construction and workmanshp, materials etc are the bottom line.

Even the cheapest built on site can have brick siding, so can a modular.

This bunch of comments is not warranted.

Wayne Tomlinson

 

[J Adair]

Supply and Demand. I recall a time, believe it or not,
when modulars were commanding a higher price per
SF than stick. Quality of modulars was better than the
guy who owns a pick-up truck, who is called a builder.

I also remember this...back in the daym2:

 

[CANative]

Today's modulars are not your father's modulars. I've appraised a number of very high end moudular homes in high dollar lakefront and estate acreage locations.

http://www.ebuild.com/articles/catCode.-1/articleID.434559.hwx

 

[TXCBoy36]

Modular vs. Stick Built.difference

Depends on the overall quality. 2 X 6 exterior walls means virtually nothing other than increased insulation R value in the walls, which they offset with less insulation in the floors or ceilings as most insulation codes allow for a composite/total R value etc. Most modular builders that use the 2 x 6 "gimmick" as a selling point reduce the grade and species of the wood and/or increase the spacing so its a non factor. A modular with 2 X 6 exterior walls and HUD code cabinets, interior doors and trim, inferior floor coverings etc is inferior to an "average quality" stick built house

It also depends the availabilty of comparable modular homes....if the availability is scarce, then you can use Stick built homes.

JC

 

[c w d]

It's my understanding that a modular home, once on site, is built to local code. Per FNMA, we should try and find other modulars within the market. But, in situations where there are a lack of modular sales site built homes can be used as comparables.

Determining construction quality is a different matter and a subjective one. I've been through several modular homes that appeared to me to be of average to good quality. I was impressed. However, unless an appraiser has intricate knowledge of the construction of the modular and is able to compare that to their intricate knowledge of the construction quality of the surrounding site built homes and the differing building codes throughout the decades that the area has been built up then quality of construction is rather subjective. I don't doubt that some appraisers have been around long enough and have had enough experience in the construction field to make such objective arguments concerning construction quality of the two types of homes. However, the mass majority of appraisers on the other hand lack that level of knowledge. In my opinion, the segment of buyers in the market area also do not have that level of knowledge. As such, to compare on that level of detail is not paramount. There are biases when "modular" is mentioned. That bias should be decernable when the market data is available. When there is the abscense of comparable data then you are left with site built homes as your comparables.

I have appraised a modular in a market area where no other modular sales were found. I did not have problems with the UW and did not make adjustments on quality of construction purely on the fact that it was modular and all other sales were site built. The data was not present to perform an analysis.