Home Buying in 07457>Question Details

Perfecthome, Home Buyer in 07457

Do prefabricated homes appreciate?

Asked by Perfecthome, 07457 Fri Aug 19, 2011

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HELLO AGAIN, PERFECTHOME; I HAD ANSWERED YOUR BASIC QUESTION ON 8-19-11 ABOUT A MODULAR HOME, HOPEFULLY YOU HAVE READ IIT; NOTICED YOU HAD A FEW MORE RESPONSES AS WELL; ARE YOU IN THE PROCESS OF DOING A MODULAR OR ARE YOU DOING RESEARCH, CONSIDERING DOING ONE? I AM VERY VERSED IN MODULARS AND HAPPEN TO BE A BELIEVER IN THEM AS WELL; VERY IMPORTANT THING FOR YOU TO KNOW ABOUT EQUITY, APPRECIATION IS, ASSUMING YOU HIRE THE RIGHT PEOPLE, PROPER SCHEDULING AND GETTING YOUR HOME TO A -TURNKEY STATUS- IN A REASONABLE AMOUNT OF TIME IS VERY IMPORTANT; ASSUMING YOU ARE GOING TO DO AT LEAST A 3 TO 4 SECTION (BOXES) HOME, WHEN DONE, YOU SHOULD HAVE APPROX 20% EQUITY IN THE HOME ALREADY, THE DAY YOU CLOSE THAT MORTGAGE; THAT, IS GREAT APPRECIATION AND --NEW-- ALWAYS IS MORE SOUGHT AFTER THAN A TRADITIONAL RESALE; SHOULD YOU WISH TO DISCUSS THIS FURTHER, I AM AVAILABLE TO SIT, CHAT AND GUIDE YOU, TO ACHIEVE YOUR GOALS; ALWAYS AN IMPORTANT FACTOR IS LAND, WHICH --YOU-- USUALLY HAVE TO FIND YOURSELF, THE MODULAR COMPANIES DON'T DO THAT FOR YOU, NORMALLY; I AM ALSO VERY VERSED IN LAND AND WHERE TO FIND THE RIGH ONE; TO CONTINUE THIS CONVERSATION, JUST CALL ME 973-248-9293 OR E-MAIL ME JERSEYGEORGE@AOL.COM AND PUT -MODULAR- IN THE SUBJECT MATTER; LOOK FORWARD TO HEARING FROM YOU; GEORGE "SERVICE" CONKLIN
0 votes Thank Flag Link Sat Oct 29, 2011
Most manufactured or modular homes appreciate similarly to traditional homes, but generally not to the same extent. There still exists a stigma to many manufactured homes even if they have better insulation or built studier, they usually have it mentioned on the tax rolls that it is a manufactured home. Since you're not out here in Calif., things may be different, so have an agent pull up the tax records for some similar types of homes and see how they are shown on the tax records. You should also have an agent to some comps. If this is a building project and you didn't buy the property from an agent, try to find an agent through a friend to help you. Most agents will do some free research in the expectation of getting some future referral business. Best, Terry Bell, Realtor, Sonoma County Wine Country, California
(If you liked my answer, your thumbs up would be appreciated!)
0 votes Thank Flag Link Fri Oct 28, 2011
Perfecthome,

A reporter once shouted out to the famous financier J.P. Morgan "Mr. Morgan, what will the stock market do?" Morgan looked at him, and said "Fluctuate". The same applies to prefabricated homes, and, indeed, to any type of real estate. Whether their value will increase or decrease over a given period of time is a function of what happens to market supply and demand (and given that supply is generally fixed over the short term, given the time it takes to go from the idea for a house to the final Certificate of Occupancy, that means what happens to demand).

Having said that, you have to be careful when talking about homes other than those built on site, as the terminology sometimes gets used loosely. By prefabricated home, I assume you are talking about a home which is constructed in modules in a factory, shipped to the site, and linked together there on a site-built foundation, not a euphemism for what used to be called a trailer, then became a mobile home, and is now, I believe, referred to as a "modular home". Once the true prefabricated home has been assembled on site, it can be virtually impossible to distinguish it from its site-built neighbors. Therefore, if the values of the homes in the area in general go up, the value of the prefabricated home should as well.

You should understand that like your question, this answer is dealing in very broad generalities. Every home is unique, even in a Levittown-style tract deveolopment. You will never really know if your home value has appreciated until you, as seller, walk away from the closing table with a check in your hands.
0 votes Thank Flag Link Fri Oct 28, 2011
It depends on what you paid for in comparison to the comparable homes in its surrounding area. Let's not forget the "three most important things in Real Estate"! Of course anything brand new has some depreciation, just like a brand new car you drive off the lot.
0 votes Thank Flag Link Sat Aug 20, 2011
I guess you don't need a sixth answer here, since everyone is in agreement. I own a house that is half pre-fab and half build on site, and neither the appraiser nor the inspector even had a clue that the first level was a prefab.
The pros are that they are constructed and insulated very well. The cons are that the rooms are square and lack the more dimentional custom look.

Jane
http://www.RealTerrific.com
0 votes Thank Flag Link Fri Aug 19, 2011
GREAT QUESTION, BEING SOMEONE WHO RANKS THEM VERY HIGH, FOR MULTIPLE REASONS, I WOULD SAY, THEY WOULD APPRECIATE JUST LIKE ANY STCK-BUILT HOME; IF YOU ARE THINKING OF HAVING ONE BUILT, YOU WILL AUTOMATICALLY (IN MOST CASES) HAVE 15 TO 20% EQUITY IN IT BY THE TIME IT IS DONE; I AM VERY VERSED IN PREFAB HOMES, SO, FEEL FREE TO CONTACT ME VIA PHONE OR E-MAIL; LOOK FORWARD TO HEARING FROM YOU;
GEORGE "SERVICE" CONKLIN
973-248-9293 JERSEYGEORGE@AOL.COM
REALTY EXECUTIVES -OFFICE-- 973-575-6700
0 votes Thank Flag Link Fri Aug 19, 2011
All homes may appreciate OR depreciate depending on many factors. A pre-fabricated home is no different that a home built on-site.

Jack Gillis, M.B.A., J.D.
Jack Gillis Realty Advisors
United Real Estate, Broker
5430 LBJ Freeway | Suite 280
Dallas, TX 75240
Cell: 214.718.4910
Email: Jack@JackGillisRealty.com
0 votes Thank Flag Link Fri Aug 19, 2011
Perfect
All homes will appreciate or depreciate based upon their location, condition and market. Prefab homes like modular homes are merely a method of construction that has it's pluses and minuses. Often prefab homes have less in the way of options like sunrooms or moving walls or dimensions to fit a particular lot. Prefabs are typically quicker to construct and built in a controlled environment where weather matters less. Prefabs may be less acceptable to local inspectors since they often cant do the same level of inspections (sheetrock covers wiring for example) Research the history and reputation of the manufacturer just as you would a conventional builder.
0 votes Thank Flag Link Fri Aug 19, 2011
They are homes just like anything else. If you are worried about purchasing one and having future buyers not value it like a normally built home you shouldn't let it affect your decision. Once the homes are fixed to the foundation they are as strong as the company that built them just like a normally constructed home.

Do research on the builder if you are concerned with the structure.

If you have other concerns or a more specific question feel free to call or e-mail me directly.

Then again in this market there are not many areas where any homes are appreciating or depreciatingthings seem to be pretty flat year over year lately.

Thank you,

Gene Tedesco
Re/Max Home Connection
973-575-6005 Office
201-341-0307 Cell
Web Reference: http://www.genetedesco.com
0 votes Thank Flag Link Fri Aug 19, 2011
Dear Perfecthome,

All homes appreciate. It does not matter that it would be a prefabricated home. The only problem with them is obtaining a mortgage on them.
0 votes Thank Flag Link Fri Aug 19, 2011
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