Home Buying in Saint Charles>Question Details

Ashley Branam, Home Buyer in Saint Charles County,...

which type of home depriciates more, a Modular home, or mobile home?

Asked by Ashley Branam, Saint Charles County, MO Sat Dec 3, 2011

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A mobile home and a manufacturered home and a modular home may actually refer to the same thing. The difference - which is really important not only for resale but for getting a loan, is whether or not they were constructed with wheels that were temporary - ie only designed to move them from the factory/dealer to the lot at which point the wheels are removed. OR, if the structure was designed with the wheels as a permanent part of it (EVEN IF THE WHEELS HAVE SINCE BEEN REMOVED). If it was designed for the wheels to remain on it, it is a mobile home and it depreciates, like a car, the minute it is removed from the lot. It is VERY VERY easy to end up upside down on these loans very quickly. Their resale value is next to nothing, even if you have only owned it a short while.

The resale value on modular homes and manufactured homes is similarly dim, but slightly better than a true mobile home, plus it's a bit easier to get a loan on them.

There is another category of home, where they are "made" in a factory, then taken on semi's to the location and "assembled" like a jigsaw puzzle. These prefabricated homes have a slightly better resale value, but again, it's not great.

At the same time, there are some communities, particularly in farming areas, where you will find these to be the primary type of homes available.

Make sure to REALLY talk to your lender and your agent if you are considering one. The last person I had who looked at a modular home, it took us a LONG time to find a lender who would lend on it.
Web Reference: http://www.yourstlhome.com
0 votes Thank Flag Link Sun Dec 4, 2011
Hi Ashley,

Just like the previous agents answered, in Missouri mobile (manufactured) home will depreciate faster. They have a longer life expectancy and are much harder to market in the event you would like to sell the property.

Modular homes these days are constructed very well and if installed on a quality poured foundation will last a long time. From the outside its hard to tell the difference between a modular home and a home build on site.

I offer my clients a service called Listing Book. Its a user friendly version of the MLS agents use and its more up to date then the standard consumer sites. Check it out. I hope it helps.
0 votes Thank Flag Link Sun Dec 4, 2011
I'm from southeast Michigan. In my area the mobile (manufactured) home depreciates much more than a modular home.

The quality of the mobile home isn't as good as the modular home. Lenders give a life expectancy of 30 years to a mobile home. It's difficult to get financing for a mobile home if it's on a piece of property as opposed to a manufactured home community. Once a home has been moved from one location (example: mobile home community) to another (example: vacant land), it's next to impossible to finance. You want to consider resale value when you purchase it also.

I've been inside modular homes and unless I know what details to look for they're difficult to tell the difference from a stick built home. They're built inside, not outside like a stick built that is built with the elements (snow, rain, etc.). Their value is comparable to a stick built and they don't depreciate as much as a mobile home.
0 votes Thank Flag Link Sat Dec 3, 2011
Hello Ashley,
Definitely a mobile home has greater depreciation. Many modular homes of recent construction are sometimes of better quality than custom homes as they have to go through rigorous inspections and approvals. They are not considered to be of poor quality any longer if they were built in the past few years.

Hope that helps.

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Sat Dec 3, 2011
In my area of Minnesota- a manufactured (mobile) home depreciates the moment it leaves the sale lot- much like a car.
Web Reference: http://topbrainerdagent.com
0 votes Thank Flag Link Sat Dec 3, 2011
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