Manufactured vs. Modular

[Melissa]

What is the difference between a Kit Manufactured home and a modular home? Are they both in the "mobile home" family? As far as depreciation, is there one that tends to depreciate more than the other?

[Marty Peltier]

What exactly do you mean by "kit manufactured"?

Do you mean panelized? Or simply manufactured?

A manufactured home is kin to what used to be a mobile home.

The main difference between a modular and a manufactured home is the frame. A manufactured home retains the steel beams supporting the home after setting on the foundation. A modular home is slid off the frame and sits on the foundation the same way as a site built home.

Also, the modular homes have standard features which are optional on even the best of the manufactured homes, like drywall throughout, better flooring, ect. And most modular homes do not come with a furnace or appliance packages as the manufactured homes do.

Modulars can be purchased as ranch homes, or two story homes in cape cod and colonial styles.

As far as depreciation goes, while the manufactured homes are built at least as well or better than the modular or site built homes; appraisal seams to be lower (especially if the home looks like a manufactured home. If the home is placed on private land with a permanent foundation, depreciation should (should) be the same a any ranch style home that fairly compares. I say should because most of the world still thinks of a "trailor" when you mention a manufactured home. Any educated consumer would give a (more) fair appraisal when building or purchasing used. On the other hand, if the home is placed in a park and/or is built unlike a site built home (vinyl wallboard instead of drywall, cheap fixtures, substandard materials, ect.) your depreciation will be more severe.

A Modular should appraise and depreciate the same as any site built home.

And a panelized or "kit" built home is essentually a site built home from the get go.

[Melissa]

Thanks for replying Marty. We are looking at a place in the country - it is on a permanent foundation - Sellers are referring to it as a Kit Manufactured Home (I am assuming Kit is the brand name). What caught our attention was the fact that when looking underneath the house we noticed that it does indeed have the steel beams you referred to. We then got to wondering if it was a home that was brought out in 1/2 sections and then put together or what. The home was built in 1989 - what's the best way to go about getting an idea of what the home itself is worth, other than going through an appraiser? We certainly don't want to make an offer until we have an idea of what we're looking at, because the whole package is over $100,000 currently.

[Marty Peltier]

Where is the home located?

Does the home have the typical manufactures home profile?

What you might do is ask the real estate broker to "comp" the home for you.

Or pull listings of similar homes in the area. Then look at the homes being comped to see if the are similar. Curb appeal or what the home looks like from the curb is very important to appraisers. It should also be important to you if you are trying to figure what it is worth on your own.

[Bill Fry]

If this home is a manufactured home and has the original siding it should have the HUD red metal plate on the front of the house on the right corner and the back of the house in the
left corner.you can also check either in the electricial breaker box, closets, or somewhere in the cabinets for more documention if this is a HUD home(manufactured)If it is you will need the HUD number before anyone is going to finance it.

[rmurray]

Kit is a manufactured of manufactured homes...This is a factory built home..The value of the home alone is not important...The value is the home on that location with the features that it has ans the condition of the property....compared to others like it in the area...Hence..only a local appraiser can determine the value of the package....

If you like the home...it is in good condition...compares well with other properties in the area...go for it...like any 14 year old home...you should have it inspected by a professional home inspector....

Good Luck