Therefore, it’s no surprise that so many people believe modular homes are their way into the housing market or an opportunity to upgrade. Building a brand new home is becoming more appealing as there is plenty of land available. Due to the cost and time involved, it may never become a reality for some. In spite of this, modular homes offer a unique opportunity to homeowners. You can customize and build a new home for less while making a sound investment at the same time while making a new home for less.
The Modular Home
It is also important to note that modular homes offer additional safety features. It should be noted that modular factories build for different states, which means that it is easiest for them to ensure consistency if they adhere to the strictest guidelines and codes that are in place in their state. In terms of electrical building codes, it doesn’t matter if they are state-specific or not, because the modular factory is going to adhere to the highest standard set by the state in regards to yours. Yet, you aren’t paying more for it. The standard they set is the highest possible standard.
As a result, modular home builders often offer in-house inspectors to ensure that the quality standards of the build are met throughout the entire construction process. When you go to a bank, they will treat the modular home just as they would treat a stick-built home if you went there. The bottom line is that modular homes are more likely than not to appreciate in value over the course of their lifetime, especially when compared to a mobile home. Due to the fact that mobile homes are always on the move, they depreciate over time. Lenders do not differentiate between modular homes built in a factory versus those built on-site when it comes to modular homes, they treat them the same as any other type of home. There are also a number of manufacturers who offer financing options as well.
If a home is on a permanent foundation, then it is treated as a single piece of real estate along with the land it sits on. This is why it’s financed the same as stick-built homes and it offers modular home buyers an advantage. Not only do you have the finance options on offer from banks, but many manufacturers offer their own finance options as well. This offers you the edge in ensuring you get the best possible finance deal.
So, the big question is do hold their value? Okay, we touched on it briefly, but let’s get into some detail.
The Foundation & The Advantage
There has been a common misconception for a long time that modular homes depreciate because of their value. There are no problems with the home itself, since it’s financed in the same way as a stick-built home, which is why it’s not the house itself that causes any issues. Rather, what matters is the foundation of the building. It is important to make sure that the modular home is properly anchored and set up on a permanent foundation in order to ensure that it will retain its value over time. You can expect it to appreciate in value at the same rate as a stick-built home in the same area would do.
Modular homes are cost-effective. The cost of manufacturing is lower, so the cost of purchasing is lower as well. As soon as it is placed in a neighborhood, it will immediately increase in value in line with other homes in the neighborhood as soon as it is placed there. It’s a boost between the market value and the actual cost, and it’s always a win for you.
Often, modular homes sell for more in the second sale versus the first sale. If it is well-designed, and the construction is properly managed, a modular home could be a profitable investment.
The Verdict
You can find a modular home that meets your style from a variety of floor plans. It doesn’t matter if you’re into ranch homes, American craftsman homes, California bungalows, or a mansion, you’d better believe there’s a modular home that will meet your needs. It is important to keep in mind that modular homes are fully customizable, so once you select your floor plan, you can customize it so that it meets your specific wants and needs. You can expect your home’s value to rise in line with the rest of the neighborhood if you build a high-quality modular home. It’s a win-win.
