Home Buying in San Diego>Question Details

Vanesa Chris…, Home Buyer in San Diego, CA

Are there any monetary incentives for buying a prefabricated home in CA?

Asked by Vanesa Christman, San Diego, CA Sun Oct 6, 2013

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4
John & Janis Arendsen’s answer
Still haven't heard back from you Vanesa but let's elevate this discussion to a new level. We are a family owned and operated general & manufactured home contractor, manufactured/modular home dealer & developer, real estate broker, investor and property manager with over 100 years of combined experience in the Factory Built Housing industry in San Diego.

We have been involved in thousands of Factory Built Housing projects and developments during this time and understand all the nuances and challenges that one may incur during this process. It's not always as difficult as it was purported to be in a previous comment. In fact the process if done correctly can be quite painless and expeditious.

If you are considering placing a Factory Built Home on a private lot/parcel it would certainly behove you to select a "Modular Home" vs a "Manufactured Home" for the simple reason that you can use comps from other homes quite close to you be they "Modular" or "Sight" Built.

With a "Manufactured Home" you may only draw comps from other "Manufactured Homes". So if there are no Manufactured Homes in the immediate area the appraisers my find themselves searching outside the neighborhood you are seeking to build in. Sometimes the closets Manufactured Home is in a MH park/community which could be a lease/rental park/community. This obviously would not bode well for your appraisal.

What's worse most folks won't even find this out until they attempt to replace the construction loan with a "take out loan" (long term financing). I've seen some devastating scenarios result from this situation. Should the appraiser not be able to find local comps and need to rely on a Manufactured Home in a rent/lease park your home would never comp due to inadequate lone to value. Folks have had to literally walk away from the entire project losing everything they've invested. Believe me you will be much better off with a "Modular Home"

However, if the lot/space/parcel is located in an existing MH park/community then you would be able to select a Manufactured Home without much concern providing once again that the park/community is in the path of progress and that there aren't too many older homes which would not bode well for your resale value.

I still have a lot more information for you should you wish to contact me direct on my cell at 760 815-6977 or email me at onthelevel@cox.net.We are the go to Factory Built Housing Specialists in San Diego.

Please feel free to log onto any of our very user friendly websites for a very comprehensive overview of the Factory Built housing industry, general real estate information, interior design, architectural, engineering and landscaping information.

http://www.onthelevelcontractors.com

http://www.sandiegorealestatetoday.com

http://www.chadofalltrades.com

http://www.intimatelivinginteriors.com

http://www.mh-processing.com
0 votes Thank Flag Link Tue Oct 8, 2013
If I understand your question I think that you are asking if that is a less expensive option and it is a possible way to purchase a home for a bit less. If you are planning to buy a lot and add the pre-fab or manufactured home, there are some caveats to consider. The completion costs and assessments to permit the home can be extensive and expensive. You will need to bring in utilities and complete a foundation. It would be wise to pay a bit extra to upgrade to a modular home as they are less difficult to finance both going in and on resale. A modular is built to the uniform building code instead of a HUD standard for modern manufactured homes. Quality can vary from company to company as with most all purchases. Think of the project as a construction process. The completion, if well coordinated, can be faster than on site construction and will cost less per square foot on hard construction. The availability of desirable lots in a location suitable may be limited. Make certain you get counsel as you begin the process of determining the actual cost of the project. Preparing a lot for construction can be daunting and cost more than one would anticipate. You need an engineer to help in processing the plan for the lot and a contractor for the foundation, assembly of the home and garage construction. The garage will be on a slab foundation if you want a garage. That will probably add another $25,000 to $30,000 to your home cost. Yes you may save some if you make sound decisions along the way and will have a new home, but expect it to take longer and cost more than you initially anticipate. I have been through this process as an investor. you can contact me if you have further questions.
0 votes Thank Flag Link Mon Oct 7, 2013
John DL Arendsen's questions/variables are excellent, but you already know that a Prefabricated home is not the answer and just probably looking for someone to give you the green light.
Buy Real Estate without cutting corners and hire a REALTOR
0 votes Thank Flag Link Mon Oct 7, 2013
It depends on a lot of variables. Is the home going into a Manufactured Home Community? If so is the community in the path of progress and upward mobility. What year is the home? If in a MH community how many of the homes are older than yours? How many are pre HUD (Built before June 15, 1976?. Is it a rent/lease MH Community or is it a Resident Owned Commuinity? Or is it on a private lot/parcel? Or do you want to install one on a private lot/parcel.

I have several other questions and suggestions but this information would be very helpful to me in determining a qualified and knowledgeable answer for you
0 votes Thank Flag Link Mon Oct 7, 2013
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