Modular vs stick built

[mikeyv10]

I unfortanutly have limited data to pais sales for differences in sales prices for modular built homes vs stick built homes in the southern california area so i am looking for somebody who has dealt with apprasing a new consgtruction modular home with ofcourse no comparables to use. I found 1 closed sale not located anyware near my subjects but i was trying to pair sales of modular vs stick built to apply adjustments between the two types of construction. in painring sales it was approximately 75,000 diference with similar lot, age, location & sqft i was wondering if typically modular homes sell below stick built even though the quaility of modular has improved over the years & cost is approximately 20% less than stick built any help to confirm my assesment would be greatly appreciated.

 

[BRCJR]

Are you finding stick built with the same or similar quality of construction as your subject?

 

[CANative]

What kind of "modular" construction are you talking about?

 

[hastalavista]

What kind of "modular" construction are you talking about?

This is the key question.

I've done two in the last six-months: both high-end, both custom-specification (built-to spec), both valued at the upper end of the market, and neither requiring a "modular vs. stick & brick" adjustment.

 

[AnonApprsr]

No difference in my market.

 

[Jo Ann Meyer Stratton]

What was the original building code that was followed when the home was being constructed in the factory is the very first question that needs to be answered.

If built to the HUD building code it is a manufactured home, regardless of quality, amenities, options, installation, etc, etc, etc. And reported on the 1004C.

If constructed to a site building code that would be applicable for homes built on site in that location, it is a modular home. If that modular home has a steel undercarrige/chassis/frame it will not be eligible for Fannie Mae. It will be eligible for Freddie Mac, FHA and VA. If there is no steel undercarrige, then it is eligible for Fannie Mae. And both styles are reported on the 1004.

 

[BOCK FOLKEN]

They have a lot of these things in the county north of me. However, they are built on metal frames, and they all look like vinyl sided manufactured (HUD type) homes. The primary difference is they deliver them on flatbeds (not axles), and they install them with cranes on permanent foundations (no tie downs).

The regs indicate, and most lenders will expect, that you use site built or modular comps. The last one of these I did I used several manufactured homes (rural area) and supported my decision with lots of photos. The lender still screamed they wanted modular comps (there weren't any) and site built (which I used three).

Even so they were not happy. I wrote them a huge addendum and they went away.

In your case, I would go as far as needed to try to find a modular sale you can use, fill in with site built. If your subject looks like a typical manufactured home, you might consider using a manufactured comp or two, but beware it will trigger a stip of some sort. Your paired sale analysis probably wont work too well for this one. You can call the factory and ask them for a cost per SF for building these then come up with some sort of quality adjustment using that and your Marshal & Swift. As long as you have something in your file that is supportable.

bock

 

[Fritz in NY]

I still think in my market, due to the NYS building codes, once a modular is inplace, it is what it is (ranch, colonial, r/ranch etc) and is equal to or BETTER than a lot of 2-3-4 year old stick builts, but of course can not PROVE it, (lack of sales data due to very slow market and I can't trust the modular dealers info as the truth) just have more than 23 years in the industry "feeling and observations" that I should get more than $ 250. for a 1004. If I were a lender I'd start a Marshall & Swift guide based upon region and modular manufacturer.