Asking Murray

[Tom]

I know the difference between a manufactured and modular home. I was looking at a manufactured home to put onto some property in Louisiana. The appraisal came back to approximately $140,000. That includes the home, land, and all improvements. The price of the whole package came out to be approximately $165,000. Palm Harbor recommended going to a modular home. I have done research between the two and modular homes go up in value where manufactured homes go down. I have also found that Manufactured homes have HUD certification where modular homes don't. However, modular homes have to meet the state and/or local requires of regular homes. This is possible due to the fact that modular homes, like that of regular homes, are not designed to be moved once set in place. What would your inputs be? Should I stand my ground for manufactured or take the recommendation to go with modular?

V/R
Tom

[David Oxhandler]

Tom-

You have been misinformed about home appreciation/depreciation - But dont feel like your alone. "Many Americans have been victimized by an outdated conception of manufactured homes—one which has been perpetuated in the news media... IN FACT, manufactured homes held up well, even when compared to site-built homes. That this was be the case should not really surprise anyone: since 1999, manufactured homes have been built and installed to standards tougher than any but the most recent codes for site-built structures." (http://www.builtstronger.com/myths.html)
For a point of view from the Lakeland Florida area, where there are more manufactured homes per sq mile than any place else on earth, take a look at this article from LEN BONIFIELD. He tells us "As with all real estate, location and maintenance of the home play a huge role in determining the rate and extent of appreciation. In a community setting, location equates to amenities, location in the state, proximity to rivers, lakes coastlines, etc. In most average communities, homes that are 25 to 30 years old can be found selling for $15,000 to $30,000, when they sold new for under $10,000. It's not much, but it is some, appreciation. A recent newspaper article related a manufactured home for sale for more than $250,000 in Broward County. It is common to see 30-plus-year old homes sell for more than $100,000 in the Fort Myers area." He tells us "If you go to Natalie Estates in Stuart and hundreds of other good communities in Florida, you will find 1970's parks where housing has appreciated greatly. California is another classic example of selling prices several times more than they sold for originally." Read the entire article - Factory-Built Homes Appreciate Consumers Union also has point of view different than yours http://www.consumersunion.org/pdf/mh/Appreciation.pdf Read it and learn that "average appreciation rates of manufactured homes packaged with owned land are statistically in line with the site built market, and there are few inherent reasons that a home built in a factory should perform differently than one built on site"
DONT SUBSCRIBE TO MYTHS GET EDUCATED PRIOR TO SHOPPING FOR YOUR HOME.You can visit The Manufactured Housing Book Store Tuition is very low when you purchase e-books and you can be reading them in a matter of seconds. How To Buy A Manufactured Home And Save Thousands Of Dollars, E-Book Version Are you interested in quality construction? This book goes into detail about construction methods and how to avoid paying for a poorly built manufactured home. If you are considering A Modular Home you can learn how to save thousands before you buy from the Modular Home Buyers Guide E Book

[rmurray]

David is exactly right about manufactured homes and value...but unfortunately a few sellers have fallen into the myth and sold too cheap....For a new loan appraisers MUST compare a manufactured home and land with other manufactured home sales in the area...But modular homes are usually compared with stick home for the purpose of developing an appraisal......It is probably true the same home as a off frame modular (as PH builds them) will probably appraise much higher....surely enough to continue with the loan...

For your information..I should tell you that I work for PH in GA..We also have this same problem in some of our market area...Especially were there are hardly any high quality manufactured homes for the appraisal to compare with...Often we have to give our clients much the same advice you have gotten from your housing consultant..I myself have a customer home delivery next week that is exactly the same way..except we knew before we ordered the appraisal and advised the customer then...His modular appraisal came in at about 225,000 for a 2100 ft. home on 3 acres...As a manufactured home the highest appraisal we have had in the same subdivision had been at $140,000...Which was not enough to complete the deal...

As far as holding out for manufactured..I AM convinced your investment will be well protected..and you will end up with an extremely high quality home...Of course you would have to be ready to commit the $25,000 needed to close....Knowing PH's pricing structure, I know that PH could NOT make up this kind of difference with a price reduction...Make a decision soon...The Dell Computer promotion is ending in 2 weeks..and the next round of price increases could well be as soon as 4/1....Good Luck....

If you are buying in Bossier City...Say HI to our friends there...

[Tom]

Thanks for all the information.