Cost of On-Frame Modular Home

[hillcountrybuyer]

I'm in the middle of purchasing a Patriot Home. The house is a smallish, on-frame modular model. The cost from the get-go is some $10,000 more than the same model labeled a HUD/Manufactured home. On top of that, the dealers says it would be an additional $12,000 to have to home placed off-frame. At that point, the house would be some few dollars more per sq. ft. that comparable stick-built homes in the area.

For instance, there's a 1700 sq. ft. house for 129,900, site-built, 2 car garage... that's 76 a sq. ft. In my city, in a similar, or nicer area. Off-frame I'm paying $78 sq. ft. altogether, $87 for off-frame. Another example: an off-frame similar in size to mine, also w/o a garage, on a similar lot, in a similar area is going for $83 a sq. ft.; but is a little too far away for us.

I believe in typing all of that, I just answered my own question. But to others, does it sound like I'm being had?

I've read in many posts and around the internet that an on-frame modular is pretty much a manufactured home, built in a HUD/manufactured factory, with a different sticker on the side. From the looks of things, I'm on route to throw away $10,000 for a sticker, a bigger floor joist, and maybe a few more electrical outlets. Am I correct in my thinking? Someone please help.

Thanks.

[rmurray]

Such comparisons are VERY hard to make...The only stick built comparison would be a custom built on your location with the same features, quality, floorplan and warranty...From info you have found, my guess a NEW custom built home would be near or over $100 per foot..Call a local builder and get exact quotes..Remember time frames and construction interest for the time the home is being built...You might go see the $83 mod and ask the builder if he will build you one on your lot...Of course if it is currently occupied, it is used and not a valid comparison..Same goes for the ranch...

The junk you have read from uninformed folks about the mod being a HUD with a different sticker (sounds like a sales pitch from a sales person who cannot sell a mod) is all wrong...The codes are completely different..Candidly warranty enforcement is better on the HUD home..Best place to get exact differences is the engineer at the plant you are considering...It IS true that a plant that builds a sloppy HUD home will build a sloppy mod, just as some custom builders are very sloppy.All the more reason for a plant visit...In both homes the land prep, foundation,set and finish all local services,will make or break the sale. Be sure the "builder" dealer is high quality and the best you can find.

[David Oxhandler]

If price is a pressing consideration, as it is for many of us at this time, a HUD home that is properly installed will give you many years of excellent use, with a minimum of regular maintenance. The end product today can have an attached garage or any other residential feature like decks, a screened room, carport, etc.

If price is not pressing look for upgrades...Find out about custom building. You can option in energy savings features into your HUD home that will more than pay you back over time.

or consider a modular. The "off frame" modular has a higher price new than a HUD home and a much higher installation cost. HUD homes have been proven to hold their value, and follow the value of all residential property in a given area. You would expect a higher resale from a modular. Will it be enough to make up the difference in the original purchase price? ... .. how much is enough is what you must decide.

If you would like to research modular homes jump to http://modularhousingnetwork.com

[Joseph]

Ask the dealer to show you the list of materials for each type house(ie mod/manuf). The extra costs for the mod upgrade may be recovered at resale time and maybe peace of mind. The key differences are hidden because the mod is built to city/state codes. Sheetrock/roofing/upgraded appliances/siding/floor deck/ are some of the upgrades. I don't think you can compare stick/mod prices because the builder may not use same materials like 2x6 walls and there is a cost savings when companies buy materials in bulk, something your builder cannot do. When I compared prices between stick/mod, there was a cost difference around 15-20 a squafe foot higher for stick built. My Patriot modular is very comfortable, has very low utility bills, and is more impressive than the stick built home I was going to build. I also have had no problems since. The cost of the crane to lift the house into place is part of the higher cost to install.

[hillcountrybuyer]

Thanks for the great input. I think I'm going with the on-frame modular to make it fit within my loan amount.

One other question. Is it common practice to have the builder/dealer pay closing costs? Some typical closing costs can be wrapped into our USDA loan, but that still leaves a little over $2K to pay up front.

Thanks again.

[rmurray]

Actually the builder never pays anything..The only money he has comes from you..It is common that dealers raise the price to pay allowable closing costs..Commonly lenders allow the dealer (seller) to pay upto 6% toward costs..When this is done all he does is raise his best price and add it to the home..Much more sensible for you is to pay the costs and not finance them for 30 years.

[AZRealtor]

Cool, I've been looking for a chance to disagree with the experts. I think you hit it on the head with your comment that "it's a hud home with a sticker other than some floor joists, etc". My personal experience has been that a consumer does not feel one bit of difference between a modular or manufactured home.
Nobody has asked you yet:
Does the subdivision you are consiering allow manufactured housing? If so, weigh it carefully. The factory should have accommodations for a tour and should be prepared to answer difficult questions during the tour ie: what is the difference?
Will it make any difference to you?
With regard to resale values, from my extensive personal Real Estate profession dealing with site built, manufactured, and modular homes, I can tell you that there ARE circumstances where modular homes drive a higher resale. It is usually when they're located in an area that allows modular but does not allow manufactured. Look at your surroundings! If there are manufactured homes and site-built homes, but no modular homes, does it make sense?
I had one listing on a modular home that was priced really aggressively, yet did not receive any viewings. I knew that it was because many Realtors forget to check the box under "type". I could not change it to site-built due to local board regulations, so I switched it to manufactured. I had an offer within a week!
BUYER BEWARE! There is a lot of information out there, access it and digest it the best that you can. Make an informed decision.

[hillcountrybuyer]

Yes, the subdivision allows everything except temporary dwelling and pre-HUD mobile homes. It's largely covered by HUD/Manufactured homes, although there are some stick-built houses and some possible modulars.

We did go with the on-frame modular. I think there are some benefits in the more stringent regulations/inspections and future financing/appraisal/resell prospects. I'm not sure that we'll notice the difference MOD vs. HUD living in the home, but requirements on thicker sheetrock, larger floor joists, and being classified under the same code as stick-built houses will hopefully account for something when we sell, sometime when the market's friendly to sellers.

Even with the added cost of being modular vs. HUD, the house is a great value. Looking at what's for sale at our price point convinces me of that.