With the construction process taking place in a climate-controlled plant to prevent issues with weather or material shortages, there is a lot to love about modular homes. This reduces the cost of construction, which reduces the purchase price, and it also increases the speed of construction.
It’s not surprising then that so many people are hopping on board with the idea that a modular home is their way into the housing market or their opportunity to upgrade. With plenty of land on offer, the idea of building a brand new home is getting more attractive. For some, it’s a dream that will never come true due to the cost and time it takes. However, modular homes offer a unique opportunity. The ability to customize and build a new home for less, while making a sound investment.
The reality is that modular homes are built to the same, if not better, standard as stick-built homes. Typically, the modular factory uses 2×8 or 2×6 to construct exterior walls versus the weaker 2×4 employed by site-built contractors. They tend to overbuild in terms of safety utilizing components overlooked by site-built contractors. They produce a high level of workmanship and the consistency is unrivaled since each employee is trained and specializes in one specific task.
The Modular Home
Modular homes also offer additional safety. Modular factories build for different states, this means the easiest way forward for them to ensure consistency is to adhere to the strictest guidelines and codes. It doesn’t matter what the electrical building code is for your state because the modular factory is going to address yours to the highest standard set by a state. Yet, you aren’t paying more for it. The standard they set is the highest possible standard.
Often, modular home builders offer in-house inspectors to ensure the quality standards of the build throughout the process. If you go to a bank, they will treat the modular home just as they would a stick-built home. Ultimately, this means that modular homes are more likely to appreciate than not, especially when compared to a mobile homes. Mobile homes depreciate because they are on the move. A modular home is like any other home, lenders do not differentiate between those built in a factory and those built on-site. Additionally, many manufacturers offer to finance.
If a home is on a permanent foundation, then it is treated as a single piece of real estate along with the land it sits on. This is why it’s financed the same as stick-built homes and it offers modular home buyers an advantage. Not only do you have the finance options on offer from banks, but many manufacturers offer their own finance options as well. This offers you the edge in ensuring you get the best possible finance deal.
So, the big question is do modular homes hold their value? Okay, we touched on it briefly, but let’s get into some detail.
The Foundation & The Advantage
For a long time, people assume it’s the value of the modular home that depreciates. As noted earlier, as it’s financed in the same way as a stick-built home, it isn’t the home itself that causes problems. Instead, it’s the foundation that matters. When a modular home is properly anchored and set up on a permanent foundation, then it’s a good investment that will hold its value. It will appreciate in value at the same rate that a stick-built home would in the same area.
A modular home offers a cost advantage. As it costs less to manufacture, it costs less to purchase. Once it’s placed in a neighborhood it will instantly appreciate in line with other homes in the neighborhood. It’s a boost between market value and the actual cost and you win every time.
Often, modular homes sell for more in the second sale versus the first sale. If it is well-designed, and the construction is properly managed, a modular home could be a profitable investment.
With a wide variety of floor plans to choose from, you can find a modular home that meets your style. Whether you’re into ranch homes, an American craftsman, California Bungalow, or a mansion, you better believe there’s a modular home to match. Remember, modular homes can be fully customized, so once you choose your floor plan you can customize it to meet your wants and needs. With a high-quality modular home, you can expect your home’s value to rise in line with the rest of the neighborhood. It’s a win-win.