manufactured vs site-built homes

[rudywoofs (Pam)]

Does anyone have an opinion about manufactured homes' quality vs a site-built home? I know they are a lot less expensive, but why is that? Especially if the manufactured home is well-kept and on it's own property, why would they be looked down upon? (by banks as well as the general populace)

[Woody]

From a therapist view point Pam ... I would point out that at least they used to have very narrow hallways and doors. This made it hard for the handicapped. The walls were also thin and less safe to wind etc. Things may have changed over the years ... I don't know.

[rudywoofs (Pam)]

That's true about the doorways and hallways - they do seem to be very narrow. Being an owner of a manufactured home, I never thought much about that. I was wondering about the construction too, though. I've not had any problems with wind/rain leaking in, but I did have to put a new roof on the house after only 6 or 7 years. That seemed a little early to me.

[LynnDel]

I have lived in a manufactured home 1991. it is built exactly like a site-built home except that we had the exterior walls built with 2X6s so that we could put in extra insulation. I believe the water pipes are half inch instead of 3/4".

If you have looked at manufactured homes, you will see a wide range of quality and therefore price. Some of them are gorgeous, and some are just basic.

The main drawbacks, in my opinion, are that they are considered a depreciable item, and it is hard to get financing, at least in my area, and just as hard to get refinancing when you want to get more reasonable interest rates.

[rudywoofs (Pam)]

I did have a problem at first when I wanted to refinance for a lower interest rate, but my bank came through for me and gave me the same rate as a site-built home. I was surprised, but pleased. I do believe my home also was built with 2x6 framing, and does do an excellent job keeping me warm in the winter and cool in the summer. (Well.....the heat pump helps.) My home was also built in 1991, LynnDel.

[Dr. Shane]

Manufactured homes normally use cheaper building materials. The plumbing and light fixtures are of a cheaper quality. The wiring and pipes are also cheaper. That is part of the reason they are cheaper. The other is that they are built in a factory setting which is more efficient than on site. The workers are more productive. Additionally the basic materials like carpet, sheetrock, doors and windows are purchased in bulk using negotiated contracts which decreases the cost of these materials. The exterior framing of the homes is good and likely to be better than on-site homes because of the quality control. The interior framing is normally not as good and thus the homes seem to age faster than on-site homes.

Manufactured homes normally depreciate because of where they are located. If they are located on leased property or in bad neighborhoods it is highly unlikely the will appreciate. Property value appreciating is normally tied to the land. Businesses are allowed to claim depreciation on structures on real estate they own. So in reality on-site homes also depreciate but the value of the home is tied to the value of the land and the land is appreciating faster than the on-site home is depreciating.

I also live in a manufactured home and yet my property tax increased last year. My home actually depreciated but my land appreciated greater than my home depreciated. In my case the county breaks the value of the home and land apart. If it was on on-site built home they would lump them together. However the fact remains if I were to sell my property (with my home) I could sell everything together for more money than I purchased it all for.

[rudywoofs (Pam)]

I *did* have a problem in the master bathroom with a pipe breaking. That was a lot of fun. So, the reason for using PVC pipe instead of metal pipe (at least in the bathroom) was economic reasons on the part of the company?

Quote:

I also live in a manufactured home and yet my property tax increased last year. My home actually depreciated but my land appreciated greater than my home depreciated. In my case the county breaks the value of the home and land apart. If it was on on-site built home they would lump them together.

My property tax lumps both the property and house together, but breaks it down so a person can see what the tax is for the two separate things. As with yours, Shane, my land is appreciating and the house is depreciating much faster than, say, my parents' site-built home 5 blocks away. But the taxes keeps going up and up. Seems like it should level off at some point.

[Dr. Shane]

Yes, they use cheaper building materials because the people that look to buy manufactured homes are living on a smaller budget.

Does the county lump your parents on-site home value together with the property or do they show the value of the on-site home separate from the value of the land? Typically with on-site built homes it is all lumped together and thus it appears the value of the home itself is appreciating.

Consider this for a moment. If I buy a manufactured home for $40K and move it to a poor neighborhood the value of the home starts off at $40k and depreciates from there. If I move it to a rich neighborhood it still starts off at $40K and depreciates from there.

If I take a set of blue prints to the bank and try to borrow money to build a home for $150K in a neighborhood where the average home value is $150K I will have no problem getting a loan provided I have the credit. If I take the same blue prints to the same bank but want to built the home in a neighborhood where the average home value is $50K it will be much more difficult to get the loan. Why? Because should I default on the loan the bank would have a more difficult time selling the house in a poor neighborhood than a rich neighborhood. Even though it is the same house. It would never sell for $150K in the poor neighborhood. That is the reality of land value contrast with home value. A $150K home built in a poor neighborhood would not be worth $150K in reality.

[rudywoofs (Pam)]

The county where I live lump sums the land and the house together for the payment of property taxes for both site-built and manufactured homes on their own lots. The Assessment bill comes with the taxes divided out so you can see what the house is valued at and what the land is valued at. With my little manufactured home, the home is depreciating a lot, but because there are a number of $200-300K homes just around the corner from me, my land is very valuable, so I take a big hit on the land-side of the property tax.

[Dr. Shane]

When you think about it, an on-site home is deteriorating just like a manufactured home. Its roof is wearing out. Its foundation is aging. Its electrical and light fixtures are wearing out. Its carpet and doors are aging. The big difference is that the quality of the original products in an on-site built home were better to begin with so the quality of the home will last longer. However everything wears out and it will all need to be replaced eventually. If it is maintained the home may last for centuries but the same can be said of the manufactured home.

[olger]

6-7 years on a new roof is unusually low.

[Woody]

My parents manufactured home leaked from day one and now some 10 years after ... it has continued to leak each and every year. The problem is around the sky lights. Let's pray you don't have sky lights.

[olger]

Ps. Spray foam insulation is the best insulation available. Fiberglass is at best a pink air filter. Avoid it at all costs in new homes. It is also on the environmental hit list for carcinogenic substances (inorganic).

Warm regards,

oG

[rudywoofs (Pam)]

My parents manufactured home leaked from day one and now some 10 years after ... it has continued to leak each and every year. The problem is around the sky lights. Let's pray you don't have sky lights.

I have a skylight in the kitchen but since getting the new roof 7 yrs ago (I had a 30-yr type roof put on) I've had no leaking problems anywhere - except where that dratted pipe broke.

They probably didn't use spray foam insulation on my manufactured home...

[olger]

They have decent skylights available that are very dependable. Velux is one.

Yet, as the owner of a roofing company let me say that many skylights are notorious leakers. I could tell some stories..

I'm olger and I approve this discussion about roofing.

oG

[Woody]

And it is not necessarily the skylights ... sometimes it is the roofing that is trying to be fitted AROUND and up against the skylights.

[Dr. Shane]

That is called flashing and yes, that is normally where the leaking comes in. In the South I see no reason to have sky lights at all. Not only are they more prone to roof leaks, they allow a lot of heat gain which drives up energy costs. In the north they do let more sun light in which can help uplift the spirits during some gloomy winter days. However they do let a lot of heat escape as heat rises and escapes through the roof anyway. So they come with a big energy price tag in the north too.