Payment process

[arickis]

I am about to purchase a new manufactured home in The Villages FL. The manufacturer said it takes 4 weeks to build, two weeks for permits, one week for demo of old home and site prep. I am paying cash, and I am wondering what is the proper payment schedule? How much should a deposit be for a $70,000. home. Half paid at beginning etc?? Final payment due when?? Thanks for any advice.

[David Oxhandler]

There is no traditional formula. The time and size of the payments is something you should negotiate with the dealer. Use the retail price of each item you are paying for as a guide.

For example I would not put more than 10% down upon signing the contract. You have not gotten anything but a promise at that point so ten percent is a reasonable sign of your commitment.

If the home itself is 65% of the total 10% on signing and 55% upon delivery.

Pay for each phase as finished and ACCEPTED by the building inspector. No part of the dealers obligation is over 'till the inspection is done.

In Lake County FL you can not get the power turned on until the project has passed all of the county inspections. I would hold a minimum of 10% until you get the certificate of occupancy and/or the power is turned on. That final payment is the ONLY leverage you will have to insure the dealer and his sub-contractors perform as you expect.

You are moving into one of the finest communities anyplace. I have lived about 15 miles from the Villages for the past 32 years. It is the largest retirement community in the world. It is astounding that in today's housing market they are still building hundreds of new homes every month that are pre-sold.

It started as a small mobile home park called Orange Blossom Gardens that is now renamed the "Historic Section". Back in the late 70's I was one of the local bad boys that drag raced on the country road that is now the main highway through the Villages.

In this part of the county the majority of problems we have with any manufactured home is from settlement. Your new manufactured home is covered by a Federally mandated warranty. BUT the installation is not. Try to negotiate for a written commitment from your dealer to send a LICENSED installer back one time during the first year to re-level your home.

[arickis]

Thanks for the advice. We have lived in The Villages for the past 3 years in a manufactured home in Orange Blossom Gardens. Many people are now to the point where they have to replace the original manufactured home from the 70's with a new one. We are very impressed with the Jacobsen line and are trying to decide which dealer. One in Fruitland Park or the one on Ocala. Any thoughts?

[David Oxhandler]

I don't know the owners of either of those businesses. There is a good chance they are both company stores, owned by Jacobsen. I would get pre-qualified if you are going to finance. Most often you can find better rates than are offered thru the dealer.

When you arrive on a dealers lot with that pre-qualification letter in hand you can negotiate like a cash buyer. Then work them both to see who gives the best price.

Jacobsen builds a qyality home and has a good reputation for customer service.

The choice of a dealer is critical to the future of the new home. You can use each of them to bring down your price but sign with the one that you feel will give you the best service AFTER the sale.

[sinter4911]

I agree with the above response. The one thing I do know that several manufacturers will only build for a retailer when they sign off on the order agreeing to buy the home no matter if the customer defaults or not. Because of this it may sometimes be difficult (But not impossible) to be able to pay in stages. A company owned community or retail center may give a little lead way.