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Modular vs. Stick Built.difference marketability wise?

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"once on site, is built to local code"

Actually, the true modular home is built to a particular building code (typically the UBC in the US) IN the factory...whether that factory is under cover or out in the open. {I worked for a modular home builder in a past life}

The UBC is also the code most site-built homes are 'built to.'

So as long as the site-built and modular homes are built to the same code, there should be no real value difference...of the shells. The difference is in the finish details, etc., and that's where the value comparisons are.

Cookie...be sure you really mean 'modular' and not 'manufactured'....the building codes are different between them. If you don't know the difference, take a training course in Appraising Manufactured Housing. [I'm not being critical here...but it is vital to be able to distinguish these.]
 
I would suggest you start by learning the definitions and using the proper terms.

Here's what we have in Michigan:

A Modular house is stick built frame construction that is assembled from the raw materials in a factory and transported to the site.

A Site built house is stick built frame construction that is assembled at the site from the raw materials that are transported to the site.

Both Modulars and Site built are constructed to the very same state building code.​

Assuming they are exactly the same floor plan, if they are built to the same building code, the only difference between the two is the same as between any two houses: Quality.

In the past 10 years or so, it has been my experience that in the greater market area that I service, the market does not make a distinction between Site built and Modular construction except insofar as quality is concerned. If there is any difference in quality, that's where I make my adjustment. But then I would do the same for any type of frame construction.
 
Depending on quality, I think you may use manufactured housing as a comparable also, if need be, and/or your market buyer would consider a manufactured as a substitution. The question is only answered by the quality and market preception.
 
Depending on quality, I think you may use manufactured housing as a comparable also, if need be, and/or your market buyer would consider a manufactured as a substitution.
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Excuse me Bill but you have just fallen into the Sectional Trap.

Just because a state code modular frame home comes to the site in 2, 3 or 4 sections, does not mean that it is the same quality as a HUD Code Manufactured house that may also come to the site as multiple sections and therefore qualifies as a relevant comp.

There are varying degrees of quality in all housing, frame and manufactured. However, to consider the sales of these as being comparable just because of a similar assembly is wrong.

There are older, modulars that were of similar quality as mfg housing and there are currently HUD Code mfg that are very similar to State Code Modular housing. But to say that one can use them interchangeably is to ignore both quality and the market. As I said, in Michigan the State Code modular frame house that are factory assembled must meet the same building requirements as a site assembled frame house. The plans and specs must be approved on a state level to Michigan's now unified building code prior to assembly. HUD Code houses are built to a federal code and thus exempt from the state building code. In nearly all cases that I've seen in 15 years of appraising, HUD Code mfg housing is of inferior quality to the current state building code requirements.

Having in the past years appraised between 40 to 60 HUD Code mfg houses per year and knowing the markets reaction/acceptance to the mfg housing, it has been my policy, unless it is absolutely necessary, to never use a state code modular/site built frame constructed house as a comp for a mfg and visa-versa. In my mind, physically, they do not meet the secondary market requirement of being physically, functionally and locationally relevant to qualify as comparables. Where it is necessary to include one or the other in a sales grid, I make a significant quality adjustment for construction.

If one can avoid mixing mfg and modular in the sales grid, I think you are better off. There are many UW's who, believe it or not, still do not understand the difference between the two or who think that if you have a modular as a subject, you must have at least 2 modulars in the grid because this is a different animal. And there are those who will still come back and ask if the subject modular house is a manufactured. Every report that I do of a modular frame house carriers the following notation in capital letters: SUBJECT IS A STATE CODE MODULAR CONSTRUCTED FRAME HOUSE. NOT CONSIDERED TO BE MANUFACTURED HOUSING.
 
Richard Carlsen said:


Excuse me Bill but you have just fallen into the Sectional Trap.

Just because a state code modular frame home comes to the site in 2, 3 or 4 sections, does not mean that it is the same quality as a HUD Code Manufactured house that may also come to the site as multiple sections and therefore qualifies as a relevant comp.

There are varying degrees of quality in all housing, frame and manufactured. However, to consider the sales of these as being comparable just because of a similar assembly is wrong.

There are older, modulars that were of similar quality as mfg housing and there are currently HUD Code mfg that are very similar to State Code Modular housing. But to say that one can use them interchangeably is to ignore both quality and the market. As I said, in Michigan the State Code modular frame house that are factory assembled must meet the same building requirements as a site assembled frame house. The plans and specs must be approved on a state level to Michigan's now unified building code prior to assembly. HUD Code houses are built to a federal code and thus exempt from the state building code. In nearly all cases that I've seen in 15 years of appraising, HUD Code mfg housing is of inferior quality to the current state building code requirements.

Having in the past years appraised between 40 to 60 HUD Code mfg houses per year and knowing the markets reaction/acceptance to the mfg housing, it has been my policy, unless it is absolutely necessary, to never use a state code modular/site built frame constructed house as a comp for a mfg and visa-versa. In my mind, physically, they do not meet the secondary market requirement of being physically, functionally and locationally relevant to qualify as comparables. Where it is necessary to include one or the other in a sales grid, I make a significant quality adjustment for construction.

If one can avoid mixing mfg and modular in the sales grid, I think you are better off. There are many UW's who, believe it or not, still do not understand the difference between the two or who think that if you have a modular as a subject, you must have at least 2 modulars in the grid because this is a different animal. And there are those who will still come back and ask if the subject modular house is a manufactured. Every report that I do of a modular frame house carriers the following notation in capital letters: SUBJECT IS A STATE CODE MODULAR CONSTRUCTED FRAME HOUSE. NOT CONSIDERED TO BE MANUFACTURED HOUSING.
Click to expand...

My first three words are key, IMO. Depending on quality....
 
Oh Rich....where for art thou brother?

Seriously, the term modular is often mis-used. My county reports all factory built homes as modular. Regardless, there is a definite stigma attached to factory built homes IN MY MARKET due to the very high foreclosure rates. An appraiser should be able to determine the differences between manufactured and modular and also know the market reaction for their area.
 
... regardless of quality differences, it's my opinion (in my market) whether the "modular" is superior quality or not, if the house is built off-stite, it typically suffers some degree of stigma associated w/that fact.. it would appear given a majority of comments in this thread, most of us agree.

"Social stigma. In the past modular homes have been very basic "cardboard box" style buildings with little character. Construction methods and designs have improved however this stigma remains."

http://en.wikipedia.org/wiki/Modular_home
 
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Hi Kathleen,
Massachusetts huh?
To answer your question precisely.. no. No difference in marketability. Apples to apples. They are built the same or better than local codes.

Regards,
Jenn
 
...and never comp a modular with a manufactured home.
 
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