Home Buying in Traverse City>Question Details

Dave Thomas, Real Estate Pro in Traverse City, MI

I have a client that is looking seriously at a modular home. Colonial with 2700 sq ft... Will it be less valuable than a stick built home?

Asked by Dave Thomas, Traverse City, MI Mon Dec 20, 2010

We want to write the best and most appropriate offer to make this transaction happen. Looking at the outlook for the housing market for the next couple years, there is concern that this house will go down in value as all home prices continue to decline. We want to know what folks think about the drop in comparison to a stick built home? Any real numbers that someone has would probably make the most sense.
Thanks for the input.

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Chad is correct, and knows what he is talking about. There is a mystique to some about the word modular because they assume (incorrectly) that is is made cheaper or has less quality. Nothing could be more incorrect in the newer modulars made since 1980's or after. Modulars are not like trailers with steel and wheels under them. Modulars are built in a temp controlled building is sections and put together on site on a traditional foundation. They are often built stronger because they are built in box sections and must be strong enough to be trucked to site. There is no reason to assume the value will go down, but marketing will be harder if the term modular is used because buyers don't fully understand what advantages modular construction offers. They are really not any cheaper to produce, but builders like them because they know exactly what day they will show up on site and they don't get rained or snowed on and there are no corners cut because they go through many more inspections while being built.
1 vote Thank Flag Link Mon Dec 20, 2010
Dave,

I'd say it depends on the age and quality of construction. If it's a more recent building, the quality of construction should be at least as good, if not better, than a site built home. Most of the modern modular homes are very well built and there should be no concern. There will be buyers out there who flinch at the term "modular", but they may just not be familiar with modern modular construction and are assuming it's a "manufactured home". There are a lot of different types of modular construction as well. some are stick built, some are panelized and built of styrofoam sandwiched between layers of plywood and there are many other forms of modular construction.
1 vote Thank Flag Link Mon Dec 20, 2010
Hello Dave,
We have quite a few modular homes built in my community and they are higher-end homes where there is no difference in pricing because they are modular vs. stick built. I've been told by a couple of modular contractors that the materials used are of higher quality than what some builders use. It is true that modular homes go through much more rigorous inspections than a home that is not.
Modular homes are nothing like they used to be back when they first came onto the market as these modular contractors know that they need to compete with stick built homes and overcome the previous stigma of what the term "modular" used to be in the past. They can assure quality construction where some regular contractors may possibly cut corners. This usually satisfied the potential buyers about the quality of construction.
I hope this is helpful.
Good Luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Mon Dec 20, 2010
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