Modular Homes Section
Modular Home Resale Value
A common question new home buyers ask is "What is the resale value of modular homes?". This is a very logical question to ask before you make the biggest purchase of your life. The most accurate answer to this is question is that it depends. Just like a stick built home the resale value of a modular home is dependent on multiple factors. A modular home resale value is generally the same as stick built home.
Before we get into those factors we should spend a little time clarifying what we mean when we are talking about modular homes. We are not talking about mobile homes or manufactured HUD homes. Those homes are not placed on permanent foundations like a modular home is. Mobile homes and manufactured HUD homes are also subject to special zoning which hurt their resale value. Modular homes follows the same building code of on-site stick built homes. Once a modular home is placed on its permanent foundation it should be almost impossible to distinguish it from an on-site stick built home. That is why it generally will have the same resale value of a stick built home.
Now let's talk about the resale value factors of modular houses.
Zoning & Location
The zoning and building codes of your building site will have a big impact on your resale value. If the modular home is placed in or near a busy commercial area you will lose resale value. If you have your modular home placed in a quiet residential zone, its resale value will benefit. Also the land that you permanently place your modular home on is very important. If your building lot is in Manhattan, NY you will be much better off than if your modular home is placed in a swamp.
A modular home can look like almost any stick built home which is good. This can also cause trouble if you let your personal preference go too far. Let 's say you love the Cape Cod look and decide to have your Cape Cod modular home placed in a neighborhood that is all two-story colonial style homes. Then you pick an exciting electric yellow exterior paint. You may have your dream home but it is also going to be the odd duck in the neighborhood. When designing your modular home you should balance your personal preferences with advice from a realtor on what local home buyers generally are looking for. If you make sure your modular home style matches the neighborhood your resale value will benefit.
If you are worried about the resale value of a modular home you should be careful when designing your modular home. You may not care about having certain features in your home but they may be vital when it comes to selling your home. The number of bathrooms is very important. You may only want one bathroom to save on construction costs but that will hurt when it comes time to resell your home. You may want your permanent foundation to be a slab or crawl space. If all the other homes in the neighborhood have full basements then you should match your home to their specifications. If you overbuild your modular home with bonus square footage, extra bathrooms, oversized master bedrooms and basement space you can increase the resale value when you are ready to leave your modular home.
Lot Size & Orientation
Most new home buyers do not think about lot size or orientation too much. It is very important to the resale value. A huge house with no lawn will not sell as easily as a moderate sized house with a nice lawn. When you are dealing with modular homes it is easy to get too involved with drawings and blueprints and to be surprised on the delivery day of your modular home. Make sure to layout stakes on your building lot to clearly understand the size of the home once it arrives from the factory. Also you should stay on top of any design changes. More than once a modular home buyer made changes and did not double check them. Then when it came to delivery day they ended up having their home facing backwards, well almost. The builder in both situations was able to fix the misunderstanding but it cost more money and wasted a few weeks. Make sure your modular home is proportional to its lot and it surrounding neighbors.
Overall resale value of a modular home will depend on how well you design your home. If you design your dream home and make the modular home too unique you will have a hard time selling it. If you design your modular home to be just like all the other homes on your block you will be fine and have a good resale value. When in doubt talk to a local realtor about what home buyers ask for and then make sure you include that input into your modular home design.
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