Sticker shock on land/home packages

[Tracy]

When we got serious enough at the dealerships where we were actually quoted prices on small home/small land packages, we came away with sticker shock.

Some moderate sized land/home packages we were quoted were about double the cost of "stick built" homes we've been looking at. Of course the stick builts aren't brand new construction, but they are in good condition and in good neighborhoods.

Even with a very small piece of land, the new MH's are being quoted to us as more than a similar square footage pre-owned stick built. And the land is all in very rural areas, requiring extensive commuting.

I guess based on the costs of later model used land/home packages and stick builts, we were expecting quite a bit less. But the Palm Harbor dealer said that a good portion of the total quoted to us was in "land improvement and setup".

Price examples. We looked at a 1360 square foot home "Camino" and asked for a _small_ land plot. For the Camino, with no upgrades, one acre of former pasture in a very rural area, land improvements and transportation/setup the total cost would be just under 130K. For a smaller piece of land, it was still right around 100K. The dealer pretty much didn't want to work with us when we explained that we wanted a _small_ piece of land. He said that it wasn't really worth buying less than acre. And it would be "very hard" to get us into _any_ land home package for under $100K. Maybe in a very basic very small home in a very, very isolated rural area. But nothing that met our needs of reasonable commute into the city (Southwest side of Houston, TX).

So, we pretty much gave up on manufactured housing and are looking at suburban stick builts in the $75K to $85K range. There are some amazing pre-owned MH land-home packages on large lots that aren't so rural and isolated in our price range. And we're looking at those too as we find them.

I guess neither of us were expecting to hear that a MH land-home package would be _that much_ more than the stick builts we have been interested in.

Tracy

[rmurray]

This is not really a good comparison...might be for you...but not for most..

Most manufactured home consumers want to be away from the cookie cutter subdivisions..places where the neighbors are with in coughing distance...

Second..you are not comparing apples to apples...20 year old stick builts will have much higher energy use and MUCH higher maintenance costs than a new manufactured home...

To compare..you should be looking at used manufactured home packages in the area...

Have you looked for land yourself?????...This is the most important step and you and others should not leave it up to the salesperson (who might be getting a referral fee) to do this work...Palm Harbor...or any dealer would be happy to do a "land/home" finance package on land that you have found...

Something here seems odd...I know Houston is a fast growing area...but my guess is the home should be priced about $50K or less...How could a 1 acre site sell for $80,000.......The math is just not right...Maybe you should check with other dealers in the area with other high quality homes...

Sorry for your disappointment..

[Sherry]

We already have rural land in WI and are looking to put a home on it. We have to do all the upgrades on the land: the foundation (For us a basement), well, septic, driveway, site prep, hook-up to electircit and the like. It all adds up- to perhaps tens of thousands of dollars. We are budgeting about as much for the home as for the land improvements ( hope that we will pay less than that- but we also don't want to be caught short; for eample we won't know how much the well will cost until they actually do it since price is based in how far they have to dig). I would do more investigating of the actual price for the home alone and do reserach (library and web is where we got lots of info) to see what are the real costs for the land improvements. Also try to talk to people in your area to get an idea of the prices. At least that way you will know what you are paying for.
sherry

[Charlotte]

I am in the throes of acquiring my mh that I have researched and looked for for several years, nearly 5 to be exact.

I have chosen my home, and the options to go in it. I as yet do not have a "real" price of the home but have been told that for the floor size, 1505 sq feet will probably end up being around 45.00 psf; the land that I have also been paying on for five years (the purchase price $40.000) I owe $19,000.00; the foundation is about $11,075.00. Which brings the approximate cost of my home to around 100,000.00

I am lucky in that I don't have to 'develope" the land, theree is already septic, telephone, electrice, natural gass, water both county and city there And I consider myself to be lucky

That end price isn't the final cost yet.

[JohnnyJ]

If you want to know more... the price of OSB, plywood, and building material
in general has almost doubled since April of 2003. I'm told that we are
shipping a large quantity to Iraq and that the housing boom here is making
the supply low. New housing starts on "stick built" homes are already
seeing huge price increases. Expect the MH industry to line up with the
increase very soon.

BTW, the resale on used homes is also up markedly.

good luck

[Pat]

We bought land - 3.6 acres 3 years ago - in rural area on a former peanut farm 47 miles away from our jobs - for $12,500. We live in a county without a building inspector although the commissioner checks out hookups for electric, etc. and the health department approves septics, etc. We put our power pole up the first year and fenced 3 sides. We put the well in the next year ($2,850 for 1 1/2 hsp pump). We knew - ballpark- what it would probably be because of a high water table in the area. Then we added a white board fence across the front and double gates. Last year we found the perfect house for us - an upgraded Fleetwood on the lot with the perfect floor plan - 32 x 76 - for $58,900 including all the furnishings. We didn't need them but they went with the color scheme so we took them. Price would have been $1000 less without. We got two couches, two love seats, 2 coffee tables, 4 end tables, 4 lamps, 7 nice pictures and some mirrors, a dining room table and four chairs. Upgraded appliances, carpet, cupboards, storm windows, insulation. The only utility financed was the septic tank. The land was paid for. It is a gorgeous well set home!! We moved in two weeks after purchase with everything done. We love it - even with the drive - which is all paved highway with minimal traffic - most of mine is 4 lane. But that is where you find affordable land!

[Ellen]

Don't even talk about sticker shock to a California girl. We're buying a really loaded Silvercrest and a lot in a mobile home community. Sticker shock is $236,000. Of course, you can't get a condo here for under $300,000 so we're not doing to bad! LOL.....