Pole Frame Home Vs Traditional Stick-built Home

[Simon_24]

OP here...

I really appreciate all of the comments and insight on this. Here are the main points I am taking away:

1) The resale value of various types of construction compared to their initial build cost, and in relation to each other, varies to some degree based on state, location, population density, et cetera.

2) The resale value of various types of construction compared to their initial build cost varies based on the quality of the original construction compared to other homes of the same construction type.

3) A higher-end modular home or a nicely finished pole-frame home in a very rural, farmland area would probably be easier to market down the road than the same home in a town or city, due to the lack of other homestead options in the area.

4) In general, it can be expected for a manufactured home, even if nicely made, to lose value over time at a rate much faster than the other types of construction.

5) Pole-frame homes come with a degree of uncertainty about resale value because they are a relatively new phenomenon, but they are not necessarily a bad idea if the initial construction cost benefit balances out the loss of resale value against other types of construction.

6) A buyer can get ripped off building any type of home, if they fall victim to unscrupulous builders and/or fail to do their homework.

7) A stick-built home, a pole-frame home, a modular home, and a manufactured home, all in the same area with the same amenities, same land, and same nice finishes, will not all be worth the same money down the road. Likely, the stick-built house will be worth the most, the pole-frame and modular worth a little less, and the manufactured the least. But the gaps between their respective values will depend on the factors listed under items 1) and 2) above.

If I have misunderstood any of these take-away points, please correct me!

By the way, would you folks have any estimate on what the average cost per square foot would be on a stick-build home in Kansas? We are getting in contact with some builders to look at such cost estimates for comparison to pole-frame and modular construction, but it would be nice to have an average square foot cost to compare them to, to make sure the estimates are fair.

 

[Deleted member 128537]

OP here...

I really appreciate all of the comments and insight on this. Here are the main points I am taking away:

1) The resale value of various types of construction compared to their initial build cost, and in relation to each other, varies to some degree based on state, location, population density, et cetera.

2) The resale value of various types of construction compared to their initial build cost varies based on the quality of the original construction compared to other homes of the same construction type.

3) A higher-end modular home or a nicely finished pole-frame home in a very rural, farmland area would probably be easier to market down the road than the same home in a town or city, due to the lack of other homestead options in the area.

4) In general, it can be expected for a manufactured home, even if nicely made, to lose value over time at a rate much faster than the other types of construction.

5) Pole-frame homes come with a degree of uncertainty about resale value because they are a relatively new phenomenon, but they are not necessarily a bad idea if the initial construction cost benefit balances out the loss of resale value against other types of construction.

6) A buyer can get ripped off building any type of home, if they fall victim to unscrupulous builders and/or fail to do their homework.

7) A stick-built home, a pole-frame home, a modular home, and a manufactured home, all in the same area with the same amenities, same land, and same nice finishes, will not all be worth the same money down the road. Likely, the stick-built house will be worth the most, the pole-frame and modular worth a little less, and the manufactured the least. But the gaps between their respective values will depend on the factors listed under items 1) and 2) above.

If I have misunderstood any of these take-away points, please correct me!

By the way, would you folks have any estimate on what the average cost per square foot would be on a stick-build home in Kansas? We are getting in contact with some builders to look at such cost estimates for comparison to pole-frame and modular construction, but it would be nice to have an average square foot cost to compare them to, to make sure the estimates are fair.

Average cost in a entire State is hard to determine. Even within Kansas there are differences. My suggestion is if you know the area where you are going to live that you call an appraiser in that area. Give the appraiser your general specs such as, SF, basement, quality of finish, style, garages, etc. Then let them run a cost analysis on the basic structure using a cost book analysis. That would be the most accurate estimate.

 

[Simon_24]

Average cost in a entire State is hard to determine. Even within Kansas there are differences. My suggestion is if you know the area where you are going to live that you call an appraiser in that area. Give the appraiser your general specs such as, SF, basement, quality of finish, style, garages, etc. Then let them run a cost analysis on the basic structure using a cost book analysis. That would be the most accurate estimate.

Okay, thank you!

 

[Terrel L. Shields]

In most rural areas will be cheaper than town. If high Mennonite or Amish community often a little cheaper in winter. Lower labor cost. I'm going to guess that a basic home in say, Wellington Kansas with a slab and simple gable roof and square design will run $90 a sq. Ft. and a more complex one would hit $100/SF real quick assuming under 2000 SF. A modular maybe $10/SF less and Post and beam about the same or slightly less. Morton won't be cheaper than that but some builders might be.

 

[Eli]

They are hitting your questions. It depends on your individual property more than anything. For example, I can put a manufactured 12 x 50 home that has the wheels removed on a $500,000 site as if vacant. See my point?

The manufactured home could have a book value of $2,000 literally.

 

[Mark K]

I think you've summarized the salient points very well.

As far as costs, I think central KS may be similar to central IN.

Low quality stick built, on concrete slab, in this area can be built by local builders for about $80-$85/s.f for living space plus $35/sf. for attached garage. This is about as cheap as you can get in this area. Very budget cabinets/counter tops, 8' ceilings, cheapest light fixtures from Lowes/Home Depot, low price carpet/vinyl, cheap vinyl thermo windows, lowest priced roof shingles, no appliances, etc. Prices go up from there to as high as you want. This cost does not include rural expenses like well/septic, driveway, electric utility connection charges, permits, inspections, etc. whose total can start at about $25-$30K+ on top of the house cost.

 

[Mark K]

They are hitting your questions. It depends on your individual property more than anything. For example, I can put a manufactured 12 x 50 home that has the wheels removed on a $500,000 site as if vacant. See my point?

The manufactured home could have a book value of $2,000 literally.

Sounds like the homes of some "horse" people in this area. 20 ac., add in $100-$150K barns/stables/indoor riding arena/office, another $50K in fencing, watering systems, shelters, corrals. Owners living in a 12 x 60, 20 yr. old single wide trailer. I completed it as a land appraisal; bank was OK with the report.

 

[Simon_24]

A couple of different contractors in that area of Kansas have given me estimated construction costs of about $113/sq ft (on the low end) for a simple slab home and $130-$160/sq ft for simple houses on a basement foundation. These figures are higher than I expected, so I will continue to check around. Perhaps the cost per square foot would come down if we developed an actual floor plan and the builder knew exactly what the costs were going to be. But I would think that the low-end of an estimate could be taken as a fairly reliable starting point for cost. For comparison, it looks like Morton houses start out about $95-$100/sq foot for a basic, no-frills design inside and out. I also looked into a couple of modular builders and it looks like that type of house will cost a little more than Morton by the time you form the foundation -- more in line with the low end of a stick-built home's cost. Considering all of this information, my relative is leaning toward either doing a stick-build (if we can draft a design that is good quality but still affordable) or go with Morton or another similar company, if we can be assured of the quality and longevity of the construction.

 

[George Hatch]

I think it's the materials that count. Ask about framing, insulation, ceiling heights, roofing materials, windows/doors and such. It's the bones of the house that will contribute to the longevity, not the shiny objects they use for the kitchen and bath buildouts.

One advantage with prefab units is that they are built in controlled conditions by people who are doing the same thing every day. If you have a problem with the unit you have a better chance of it being remediated promptly and appropriately.

 

[Eli]

I think it's the materials that count. Ask about framing, insulation, ceiling heights, roofing materials, windows/doors and such. It's the bones of the house that will contribute to the longevity, not the shiny objects they use for the kitchen and bath buildouts.

One advantage with prefab units is that they are built in controlled conditions by people who are doing the same thing every day. If you have a problem with the unit you have a better chance of it being remediated promptly and appropriately.

It depends . I can put a $3,000 sq ft mobile home on s $1,000,000 site and secure it to HUD standards on a permanent foundation. If this person has predominantly stick built around them, I would do stick built long term. If it’s short term, do manufactured and sell it quick before the next door neighbors accidentally have a grass fire. Lol

Some jurisdictions don’t even allow mobile or manufactured homes. So be careful.

Principles of progression and regression are huge in this question. No way for an appraiser to give sound advice here with the information provided.