Home buyers often do not have a good understanding of home purchasing options and the impact on resale each choice offers. As a result there are many misunderstandings when it comes to home values and which options appreciate in value the best. Real estate agents and mortgage lenders are in an excellent position to educate home buyers and help them understand which home buying options will provide them with the best investment.
Modular homes have been around for years, but have not become popular housing choices until recently. Too often home buyers look at modular homes in the same light as manufactured homes. While both start out in a factory, the differences are significant and impact the value of these homes. One of the biggest differences is that manufactured homes are considered personal property, whereas modular homes are considered real estate. A modular home is much closer to a stick built home in construction, quality and appreciation.
In the aftermath of Hurricane Sandy stick built homes were taking an extended period of time to build due to labor shortages. Modular homes could be built off site, for less money, with faster delivery times. These modular homes filled the gap with high quality homes that met all the hurricane standards needed for the area. The frame and structure of modular homes are built in the factory. Foundations and the interior are completed on site. This maintains the quality of the home and maintains its value equivalent to stick built homes. Yet the completion rate is much faster and often at lower costs. From the time the framing is delivered it only takes around three months to have the home move in ready. During regular build times a stick built home takes around six months to complete. When a disaster strikes like Sandy those times can extend to well beyond a year.
The advantage of modular homes when it comes to replacing homes after a natural disaster is that so much of the home can be built in locations where there are no labor shortages. This enables delivery of the homes without schedule interruptions that are occurring near the disaster location.
The success that has been found in replacing homes after Hurricane Sandy has re-invigorated the market demand for modular homes. This increase in acceptance has increased sales for this type of home building. As the number of homes in the marketplace increase there will be more modular homes coming to the resale market. This is requiring a better education among buyers so they understand the value and financing options available.
Modular homes create the opportunity to reduce home building costs while still producing top quality housing designs that will stand up to the high standards of stick built homes. It has the potential to change the housing market. Not only for rebuilding homes after a disaster but in home building markets across the country.
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