Is it required to disclose that a home is a modular home in the listing ?

Asked by megatron, 01545 Sat Apr 21, 2012

Is it required to disclose that a home is a modular home in the listing ? We got an accepted offer, and just did the homes inspection recently, and found out that the home is a modular home. From the outside, it is really just like the usual single family home (cape style). The age of the home is almost 20 years.

Does the value of modular home usually depreciate more ?
Do you guys know if the home insurance more expensive for modular home?


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Ruth and Per…, Agent, Los Gatos, CA
Sat May 4, 2013
Yes it has to be disclosed.

Right depreciates faster and your future resale can be low, and insurance will be higher.

Good luck.
1 vote
They don't depreciate, the on frame modular or manufactured home may, but my home is a two story home beautiful and a custom modular by a very reputable modular builder. My home has surpassed many "stick built" homes in value and solid build. I hand drywall hardwood floors granite and ceramic floors so why would you say that?
Flag Mon Jun 29, 2015
Wow so wrong. A modular/irc is way different than a manufactured/mobile home. Modular construction is as good usually better than site built, state approved and in almost every way the same as site built except for where they are built and where the load bearing walls are. Terrible advice.
Flag Sun Mar 15, 2015
Modular construction often exceeds site-built. There is no reason other than pure ignorance that this type of home would have any problem selling. In most states, once a home is set on a permanent foundation the construction does not have to be disclosed. Agents need to be educated
Flag Tue Mar 18, 2014
Not True! Be careful of advising people of this. You are thinking of mobile homes. Modular homes are not the same as mobile homes. They are built, inspected and approved by the State of Florida just like any other site built home. They only depreciate if they are not taken care of, the neighborhood changes, the comps in the area go down, etc. JUST LIKE A REGULAR SITE BUILT HOUSE.
Flag Fri Oct 25, 2013
Modular homes do not depreciate. They appreciate in value the same as a stick built home. Manufactured, or mobile, homes depreciate. As an agent, you should know this.
Flag Fri Jun 14, 2013
Kathryn Acci…, Agent, Wakefield, MA
Tue Apr 24, 2012
I agree: it should be disclosed. However, in speaking with appraisers, there is no difference in value between a stick-built versus a modular home. As far as quality goes, modular homes are constructed in a factory, which means there are consistent engineering standards applied. Modular homes still have a stigma attached to them which is really unfounded. The reality is that construction is only as good as the crew that builds the house. If you like the house, go for it. Good luck!
1 vote
Christine Mo…, Agent, Wilbraham, MA
Mon Apr 23, 2012
Modular homes are typically less expensive than stick-built or site-built homes. Using prefabricated modules cuts down on costs as does not having to deal with weather conditions. Modular homes are usually quicker to build as well. The plumbing, electrical and roofing of modular homes are the same as what you find in stick-built ones. In addition, many modular homes look the same as stick-built ones.
Many people are confused, mixing the term "modular" and "manufactured" or mobile homes. This leads to the belief that the resulting structure is not like normal homes and is somehow less sturdy. This couldn't be further from the truth. This has led to town rules and regulations that add more fear for new home builders, which steers them into the traditional home-building route.

A modular home is built in a factory, usually with an assembly line. After the modules are built, they are transported to the building site as separate units. The materials are the same as your standard-built home, they just come together differently.
1 vote
Steve Levine, Agent, Shrewsbury, MA
Sat May 4, 2013
The real question that comes up is what constitutes modular? I would concur that they are of equal or better quality, and if they are put together properly (which is sometimes not the case) you really can't tell the difference...however modular can mean many things to many different people.

For example, to some, modular means that the entire home is dropped off a truck onto the foundation. For others, it means that the pieces of the house are brought to the site and then put together. Still others would stretch that definition to include homes that are build as panels, and then put together on site. In our region, for example, some might say that all of the Toll Brothers homes at Shrewsbury Hunt and other such developments are modular, as they arrive as prefabricated panels which are then assembled on site.

I would concur with my colleagues, when in doubt disclose, but it really makes no difference.
0 votes
Michelle Wil…, Agent, Westborough, MA
Wed Jul 11, 2012
Great Answer by Christine Moran! Hits the nail on the head..
I would only add that the Modular homes of today are not the Same as they were 20 yrs ago, as you mentioned this home to be.
Also in the listing info., you should find, (or ASK if not) the TYPE of Construction, i.e. Stick Built, ect.

I have visted a Penn. Modular Home Manu. & was very impressed with the Quality of the build. Imagine they must Travel via Trucks , very Far distances, in alot of cases, so they have to be Durable. Plus all the electrical, ect. is inspected on site and must pass the same codes as a stick built home..

Im interested in knowing how it all turned out for you? I hope you are happy with whatever home youve chosen :)

0 votes
Di Wu, , Westboro, MA
Fri May 18, 2012
Always disclose.
Or you may lose the deal later on when they find out
0 votes
Wen Farina, Agent, Reading, MA
Sun Apr 22, 2012
I think is best when in doubt to disclose that way buyers can make a more informed decision about purchasing. I haven't really seen much of difference in insurance cost
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0 votes
Terri Vellios, Agent, Campbell, CA
Sun Apr 22, 2012
Everything should be disclosed if it would affect a buyer's decision to purchase.

On another note how does your lender view this home? Will it create a financing concerns?
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0 votes
Louis Wolfs…, Agent, Needham, MA
Sun Apr 22, 2012
Depreciation is based on many factors - there is functional depreciation, external depreciation both of which have nothing to do with if a home if modular or not. Physical depreciation has to do with the life of componets of the building, some of which has to do with maintanance. Economic depreciation can be based if the public does not want modular homes then the value will go down, if the public feels the construction is better because it is controlled then the values will increase.

I have not found insurance to be more expensive
0 votes
Amy Mullen, Agent, Shrewsbury, MA
Sun Apr 22, 2012

A modular home is the type of construction and yes it should be disclosed. I personally have seen some that are better built than traditional frame houses.

I would check with your insurance specialist but I am not aware of a different rate. If you don't have one, please let me know and I can connect you.

0 votes
Judy Boyle, Agent, Marlborough, MA
Sat Apr 21, 2012
It does not need to be disclosed but really should be!
0 votes
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