Ask Me Help Desk - Opinion on buying a Modular Home

Opinion on buying a Modular Home

Hi there,

What do you think about buying a modular as the first time home buyer?

Will it deprecite the value, any advice, experience is welcome!:)

Thank you!

Go for it. I know people that have them, and they are very well built for the price.

Thanks for the advice.
My concern is does it depreciate? What is the difference between that is built on the land and one that is manucaftured?
Thanks a lot.

In my opinion (my mother has one) and they are just trailers built on a foundation. Poorly constructed. She has been in it for 9 years now and really regrets buying it rather than having one built on the property.

Quote:

Originally Posted by J_9

IMHO (my mother has one) and they are just trailers built on a foundation. Poorly constructed. She has been in it for 9 years now and really regrets buying it rather than having one built on the property.

Thanks J_9, what do you suggest for the first time home buyer then?:)

My first home was just a small 3 bedroom home in my price range and good school system for my children. It was 3 years old when I bought it.

Very nice, close to school, 3 bedroom, although it's small but it's warm because of love.:)
Where did you find your house?( I mean through real estate? Or newspaper or... ) it sounds like a perfect home for a first buyer with kids.How did you manage to pay for it?

The town I live in is very small so everyone knows everyone. LOL My in-laws found it for us before we moved here. We rented for 2 years and then bought it from the landlord.

How did we pay for it? Jobs, we worked. I'm a student now so hubby works. My in-laws gave us the down payment as a housewarming gift.

Contact a realtor in your area.

Realtor.com

I've looked into manufactured homes and the quality is wide ranged. Tour some and see what you think. Some can be built on basement foundations, and have nicer materials. My aunt & uncle have a 2-story home that is a gem. Some are just glorified trailors and aren't worth 1/2 a cent.

Some modulars are solid and well-built, some are crap, so be very sure what you're buying. Also, I wouldn't be in a very big hurry to buy at this particular time because the overall housing market is soft. Real estate generally is sensitive to interest rates--the super-low rates of the last few years fueled the boom, and the recent upward trend in rates helped bring on the bust. In many areas prices are flat or declining, so you have some time to look around and educate yourself before jumping in.

Most real estate transactions depend on borrowed money, so that part of the effect of interest rates is obvious. But in addition to that, there is a tendency for money to flow into and out of real estate based on the returns available in alternative investments such as stocks and bonds. When interest rates are low, returns on those investments also tend to be low, so investors go looking for other places to put their money and real estate becomes attractive. The influx of this "hot" money into the market adds to the upward pressure on prices and becomes a self-fulfilling prophecy--until interest rates quit falling and/or the stock market takes off, or market psychology shifts, at which point the money goes rushing somewhere else in search of the next hot investment and the bubble bursts.

If you expect to stay in one place for 3-5 years, and can buy in a neighborhood that is becoming better instead of worse, a home is probably a good investment, because you'll be paying rent otherwise, and you KNOW you'll never get a return on that investment. But do be very careful WHERE you buy. Don't buy a really nice house in a bad neighborhood just because it's cheap, and don't reject a modest house in an improving neighborhood just because it's not as nice as the others on the street. That kind of house is far more likely to repay any investments you might make in improvements. The improvements most likely to pay off are kitchen, bathroom and landscaping upgrades. Avoid like the plague anything with foundation/basement problems, or substandard electrical or plumbing systems. These are very expensive to fix and won't really add "curb appeal" to the house, so are not likely to pay off in resale value. It is quite possible to end up with more invested in improvements than you can get back when you sell, especially for short-term periods of ownership, so be very careful.

Quote:

Originally Posted by ordinaryguy

Some modulars are solid and well-built, some are crap, so be very sure what you're buying. Also, I wouldn't be in a very big hurry to buy at this particular time because the overall housing market is soft. Real estate generally is sensitive to interest rates--the super-low rates of the last few years fueled the boom, and the recent upward trend in rates helped bring on the bust. In many areas prices are flat or declining, so you have some time to look around and educate yourself before jumping in.

Most real estate transactions depend on borrowed money, so that part of the effect of interest rates is obvious. But in addition to that, there is a tendency for money to flow into and out of real estate based on the returns available in alternative investments such as stocks and bonds. When interest rates are low, returns on those investments also tend to be low, so investors go looking for other places to put their money and real estate becomes attractive. The influx of this "hot" money into the market adds to the upward pressure on prices and becomes a self-fulfilling prophecy--until interest rates quit falling and/or the stock market takes off, or market psychology shifts, at which point the money goes rushing somewhere else in search of the next hot investment and the bubble bursts.

If you expect to stay in one place for 3-5 years, and can buy in a neighborhood that is becoming better instead of worse, a home is probably a good investment, because you'll be paying rent otherwise, and you KNOW you'll never get a return on that investment. But do be very careful WHERE you buy. Don't buy a really nice house in a bad neighborhood just because it's cheap, and don't reject a modest house in an improving neighborhood just because it's not as nice as the others on the street. That kind of house is far more likely to repay any investments you might make in improvements. The improvements most likely to pay off are kitchen, bathroom and landscaping upgrades. Avoid like the plague anything with foundation/basement problems, or substandard electrical or plumbing systems. These are very expensive to fix and won't really add "curb appeal" to the house, so are not likely to pay off in resale value. It is quite possible to end up with more invested in improvements than you can get back when you sell, especially for short-term periods of ownership, so be very careful.

I am taking notes on that! :) Excellent OG!:cool:

First of all, there is a difference between a modular home and a manufactured home. Manufactured homes are "tied down to a foundation" and many banks will not lend on them. They are in the same category as a trailer.

A modular home is built in sections off site and delivered to a location with a foundation in place and is permantly affixed to it. I have done loans on them with much success.

Quote:

Originally Posted by DianeV Sr Loan Officer

First of all, there is a difference between a modular home and a manufactured home. Manufactured homes are "tied down to a foundation" and many banks will not lend on them. They are in the same category as a trailer.

A modular home is built in sections off site and delivered to a location with a foundation in place and is permantly affixed to it. I have done loans on them with much success.

Thank you Loan Officer, do u know if most of them depreciates these years? If I want to sell the house after two years, do u think I can make a gain? How much gain/loss is it usually?:) Thank you again!!

I bought one in Florida, and so did my brother. We both made money on them, its location location location that will increase its value. GOD BLESS and fight the good fight