Modular Homes

[sd900climber]

My wife and I are looking at either building a traditional stick-built house or possibly buying a modular home. We are first time homebuyers and make an okay salary for the area, but as prices get higher in our area, it is increasingly difficult to afford anything of quality. We also own an acre of land so that is why our choices are building or buying a modular.

At first, I was completely against buying a modular home (primarily b/c i didn't know a lot about them). But, the more I read and the more options I see that are available, the more the idea sounds appealing. We have looked at a few places and like anything, there are various qualities of manufacturers.

We have narrowed it down to two manufacturers: Marshfield homes by Wick and Friendship Homes. As far as I can tell, both are very high quality. For instance, 2x6 exterior studs, 2x4 interior. Half inch sheet rock walls and 5/8" in ceiling. Can also do no-maintenance siding, solid-core doors, stainless appliances, etc. You can also get fairly custom on floor plans, move walls to your liking, hip-roof designs, and 9' flat ceilings. You can also have them leave things out like laminent or vinyl flooring which would allow you to put in hard wood floors or take out fiberglass showers which would allow you to do tile. For the most part everything can be custom.

The main reason I am considering this is as affording a home becomes more and more difficult for first time home buyers, this seems like a logical choice. Typically you can get a house that is 50% larger for 10 or 20% less.

My main concern is resale value. Even though you can't tell the difference between quality modular homes and site built homes, and often modular homes are built much better than site built homes (controlled environment, built to withstand being craned), I'm concerned about appreciation. Also, I've heard that getting a traditional mortgage can be much more difficult with modular.

So any opinions or advice of people who are familiar with these homes would be great and much appreciated. Also, if there are any questions that I need to ask that I may have forgotten, let me know.

Also, those of you who don't know the difference between modular and manufactured, please don't respond,

 

[Mafesto]

We were 25 when we bought our home.
Thank goodness the smarter half put her foot down & said "NO WAY" to modular (nice word for trailer).

Where are you from?
Here in SD, there are many places that build stickbuilt homes to be moved.

Sure you will get a trailer cheaper, but IT WILL DEPRECIATE!
A quality home should appreciate, depending on area, it should double in 15 years or sooner.

Nobody will pay you big money for a used modular.

 

[Beels]

We were 25 when we bought our home.
Thank goodness the smarter half put her foot down & said "NO WAY" to modular (nice word for trailer).

Where are you from?
Here in SD, there are many places that build stickbuilt homes to be moved.

Sure you will get a trailer cheaper, but IT WILL DEPRECIATE!
A quality home should appreciate, depending on area, it should double in 15 years or sooner.

Nobody will pay you big money for a used modular.

I think he means RTM. I've been looking at a few and I've been very impressed.

http://www.jhhomes.com/our_homes/1200_1400/athabasca.php

 

[superdoo]

modulars

RTM's have come a long way the last 5 years in western canada. with the shortage of trades guys in the smaller areas, RTM's have become increasingly popular and competition has driven up the quality. I work for the largest window company in canada, and as such supply a few of these manufacturers.
J & H in saskatoon is a very large builder who uses our product. I see their houses shipped all over.

RTM guys can do two storeys and just about any imaginable floor plan.
Another good one to check out is empire homes in edmonton.

 

[Fosgate]

I agree with Mafesto. As a former Property and Casualty Insurance Agent I would not recommend modular to anyone of me friends. When tornado's rolled through Hartford SD a couple years ago I drove by a couple of claimants "Modular" homes by Lake Madison and they got high winds but no tornados. Stick built homes were fine. Many modular homes were twisted off their foundation and were total losses. I Also had a client who had a modular brought in and the mover supposidly had insurance. Dropped it when setting it on the foundation and the house was a total loss. Found out the mover didn't have valid coverage. The company that I represented stepped up and paid for a new one. Modular home is still a "Wobbely box" It's transported and the integrity of the home is always in question from the transport and assembly. That is why you don't see them appreciate in value like stick built homes. Buy yourself a stickbuilt with an unfinished basement. Maybe a ranch style with fewer truses than many of the split foyer's that are going up. When I was looking to build I could do a 1400 sq ft upper Ranch style with a mud ruoom, 3 stall garage and open k9itchen and living room (fewer walls) Vaulted ceiling 2 baths upstairs, basement unfinished for aobut $135k. Finish the basement how I want it a few years later on my own for 7-10k and add another 20k in value to the house. A home is an invesment why would you buy something that depreciates and may be much harder to sell?

 

[xrated]

good question, is it a modular where they slap 2 halves together or the RTM type where the wall are built and installed seperate? I know a few quality builders who have done a few RTM shells and been very happy.

 

[sd900climber]

I am referring to the RTM homes.

Everything that I have read on them says they appreciate in value, but not a quite the rate that traditional stick built houses do. But, they certainly don't lose money. Those would be "manufactured" homes that are basically glorified trailer houses that stay on the steal frame. The modulars are put on a concrete foundation.

I also believe they have improved dramatically in the past 5-10 years.

Also, since you're paying less initially you wouldn't expect them to sell for what a stick-built would.

I would be putting it on an unfinished basement whether I did modular or whether I did stick-built and then finish it over a couple years myself.

Also, I live in Deadwood so there is about a ZERO percent chance of a tornado. I think there has been one tornado in the past 100 years here and it didn't touch down for more than a couple minutes. So that's not really a concern of mine.

I know that if I were to do traditional stick built, 2100 square feet, completely unfinished basement, plane jane design, two car garage, that we are talking $185,000.

The modular I was looking at is all the same specs as site built, would be 3300 square feet, unfinished basement, two car garage for $160,000.

So, I go back and forth. Obviously I think traditional site built is the best way to go, but it also would be $25,000 more at the least, for a much smaller house. And, just because it is site built doesnt mean it is good quality. We all know contractors take short cuts and cover things up. That doesn't happen with modular.

 

[Mafesto]

You're right about the contractors.
I would not work with one that I did not personally know. I like the idea that I
will be able to "find" them to address future concerns!

In you location, I would imagine good contractors can right their own ticket, so I understand the frustration in trying to find affordable quality.

Like anything in life, you get what you pay for & you pay for what you get.

 

[superdoo]

welcome to alberta

. When I was looking to build I could do a 1400 sq ft upper Ranch style with a mud ruoom, 3 stall garage and open k9itchen and living room (fewer walls) Vaulted ceiling 2 baths upstairs, basement unfinished for aobut $135k. Finish the basement how I want it a few years later on my own for 7-10k and add another 20k in value to the house. A home is an invesment why would you buy something that depreciates and
may be much harder to sell?

that house in edmonton on an acerage lot 20 minutes from town in any direction is 400K

 

[sd900climber]

You're right about the contractors.
I would not work with one that I did not personally know. I like the idea that I
will be able to "find" them to address future concerns!

In you location, I would imagine good contractors can right their own ticket, so I understand the frustration in trying to find affordable quality.

Like anything in life, you get what you pay for & you pay for what you get.

Exactly. It is frustrating. And, paying a huge price tag doesn't guarentee anything either. My brother spent over $500,000 on building their house alone and within a couple months they had drywall cracking all over the place.

Another thing about building is contractors will all give you a bid to start with but you and I both know that the final price won't come anywhere close to that. With Modular you know what your getting and what it costs.

One of the modular companies has a 10 year warranty on some things in the construction. How many contractors will give you that?

If I had my choice, I would build. Unfortunately my wife and I can't afford a $1,500 or more a month mortgage payment in order to build a decent house in this market. Also, many of the existing houses have rediculous prices. And I don't want to spend $100-150,000 for a house built 80 years ago, that is falling apart on the side of a hill.

So, I'm stuck between a rock and a hard place I guess.

 

[Pro_Marinero]

Not to throw a curveball into your situation, but have you considered SIPS (structurally insulated panel system)? I had a remodel debacle a couple of years ago in the house I'm in now. To make a long story short, we uncovered hidden framing from a previous remodel that made the entire second floor completely unsafe. My builder recommended tearing the whole thing down and building a panel house, which I immediately flipped out thinking I was replacing my house with a single-wide. After further research, we did it. I'm extremely happy I did.

In a nutshell, the house is designed by you or an architect. We used the same foundation footprint so the house is very similar to the old one, but greatly expanded the second floor. The wall sections are built at a factory and brought on-site. The walls are high-density polystyrene foam sandwiched between 1/2" OSB. It is FAR stronger than a stick-built house. You'll get a lot of naysayers regarding this - do your research. The company we used (Premier Panel) exports a lot of these systems to Japan where they are highly regarded for earthquake strength. On top of that, you get a very energy-efficient shell. Our 6" wall has an R-factor of 34. Stick-built will have an R of 19 in the walls, plus it's not solid like the foam so you'll get air gaps. What does that mean? Our 3200 sf house averages 200/month for gas AND electricity, and that's with an 80% efficient gas furnace. The house goes up FAST too, much faster than traditional framing. I have some pics if you're interested.

I'm not going to use our price/sf for reference as I know our builder lost his ***. He honored his quote which was over a year old and pre-Katrina. In that time prices greatly rose for materials. I'm extremely happy with this house. We've seen virtually no cracking in the sheetrock from settling. I'm most happy with our energy costs. It was a total *****, but I'm glad we did it and would do it again. Search under SIPS or structual panels if you want more info. Find a reputable manufacturer too.

 

[Mafesto]

This company from Watertown, SD has been in the SIPS's for years

www.enercept.com

 

[Redneck Farmer]

Anybody ever priced Custom Touch Homes? They have some pretty decent designs in the Liberty series. I have a relative that works there and I was thinking about pricing one at some point here in the future. I'm faced with a similar decision in the future. Housing is nearly impossible to rent in our area as everyone seems to save every old house for hunters. On the slim chance I'll get an opportunity at buying one even close I'll have pay for a 50-100 year old house probably 2/3 or more than what a home with an unfinished basement would cost and have a drafty home that's hard to heat when done.

If I'm going to be making payments on a home it might as well be something I'm going to be happy in until I'm 50-60+ years old but I can't break the bank either.

 

[Mafesto]

Anybody ever priced Custom Touch Homes? They have some pretty decent designs in the Liberty series. I have a relative that works there and I was thinking about pricing one at some point here in the future. I'm faced with a similar decision in the future. Housing is nearly impossible to rent in our area as everyone seems to save every old house for hunters. On the slim chance I'll get an opportunity at buying one even close I'll have pay for a 50-100 year old house probably 2/3 or more than what a home with an unfinished basement would cost and have a drafty home that's hard to heat when done.

If I'm going to be making payments on a home it might as well be something I'm going to be happy in until I'm 50-60+ years old but I can't break the bank either.

R F
If you can justify the payments on that duramax, you can surely justify home payments!

 

[sldgy]

You can always pop the shield down when the weather get really chitty.

 

[MountainPowder]

I would say no to the modular home. They are nice, and better quality than the past. But, they will not appreciate like a stick built. We bought one in 2000 (built in 1998, 1900 square feet on 1.6 acres). We put in 1500 square feet of sod, fenced in the yard, put in a 10 x 16 wood shed, central a/c, pellet stove, 12 x 12 dog kennel, and five years later it appraised (and sold) at the same price as when we bought it.

There are just too many people who will refuse to buy a modular home, and now I am one of them. So, unless you are in an area where the land is what is really valuable and appreciating, as opposed to the structure on it, I'd say go with stick built.

 

[superdoo]

appreciation

I would say no to the modular home. They are nice, and better quality than the past. But, they will not appreciate like a stick built. We bought one in 2000 (built in 1998, 1900 square feet on 1.6 acres). We put in 1500 square feet of sod, fenced in the yard, put in a 10 x 16 wood shed, central a/c, pellet stove, 12 x 12 dog kennel, and five years later it appraised (and sold) at the same price as when we bought it.

There are just too many people who will refuse to buy a modular home, and now I am one of them. So, unless you are in an area where the land is what is really valuable and appreciating, as opposed to the structure on it, I'd say go with stick built.

the fact that your property did not appreciate is more to do with the state of US housing than the type of home built.
Canada vs US in housing is a completely different situation.
I didnt even look to see where he was from.
Homes have not depreciated in alberta for decades. Not to say that alberta is canada LOL.

 

[Highmarker]

I put up a modular two years ago. It is on 3.8 acres with a full unfinished basement. 2204 sq. ft. 40x40 fully finished garage and a decent size deck built on the front.....no landscaping at all...just dirt (untill this spring hopefully!). cost me $280,000. In the process of re-financing now due to lower interest rates and the appraisal just came back the other day at $465,000. I am HAPPY with that!!!

 

[sd900climber]

I put up a modular two years ago. It is on 3.8 acres with a full unfinished basement. 2204 sq. ft. 40x40 fully finished garage and a decent size deck built on the front.....no landscaping at all...just dirt (untill this spring hopefully!). cost me $280,000. In the process of re-financing now due to lower interest rates and the appraisal just came back the other day at $465,000. I am HAPPY with that!!!

wow, that is quite an appreciation in two years!

Someone mentioned Enercept houses earlier and from what I understand they are actually MORE than traditional stick built. They hope to make it up in efficiency is I believe their sales pitch.

At this point I think that if you get a high quality modular, that it may be better overall quality than stick-built, but since the overall perception is bad largely due to people confusing modular and manufactured, that your resale value gets hurt. Unfortunately perception is sometimes reality, no matter how off base it is.

 

[Fosgate]

I see your situation. Black Hills homes are qute spendy (IMO) I think alot has to do with the lot though. My unles former partner of Lewis-Kirkiby Coldwell Banker in Rapid. He seen some astonishing prices on land out there. Go with what is more affordable or see what you don't absolutly need in order to go with the stick built and stop buying a new pickup every couple years and take good care of the one you got.