Monday, November 13, 2017

Modular Homes vs Manufactured




What Are Modular Homes vs Manufactured?

Modular Home
 Modular homes look just like traditional homes. © Big Stock Photo
By Janet Wickell
Updated February 28, 2017
When you are buying a home, you might hear the terms modular homes, manufactured homes and site built homes. It's important to understand how they all differ, no matter whether you are purchasing an existing house or plan to build on land that is subject to restrictions. The differences can affect a home's price and its resale value, and even dictate whether or not it can be built on your land.

What Are Site Built Homes?

  • They are constructed entirely at the building site.
  • Common construction materials are 2 by 4s and 4 by 6s precut wood used for framing and trusses.
  • They conform to all state, local or regional codes where the house is located.
  • Often called 'stick-built' houses, they make up the majority of all new homes constructed today and are the favored way to build a home.
  • A well-built, cared for site-built home generally increases in value over time, although its location plays a key role in value.

What Are Modular Homes?

You might find this hard to believe, but the photograph on this page is of a modular home. It looks just like a regular house built on top of a slab with 2x4s, doesn't it? You cannot really tell the difference these days. Modular homes are typically very well built. Here are more facts about modular homes:
  • Modular homes are built in sections at a factory.
  • Modular homes are built to conform to all state, local or regional building codes at their destinations.
  • Sections are transported to the building site on truck beds, then joined together by local contractors.
  • Local building inspectors check to make sure a modular home's structure meets requirements and that all finish work is done properly.
  • Modular homes are sometimes less expensive per square foot than site built houses.
  • A well-built modular home should have the same longevity as its site-built counterpart, increasing in value over time.
  • Read ​​more facts about modular homes

What Are Manufactured Homes?

  • Formerly referred to as mobile homes or trailers, but with many more style options than in the past.
  • Manufactured houses are built in a factory.
  • They conform to a Federal building code, called the HUD code, rather than to building codes at their destinations.
  • Manufactured homes are built on a non-removable steel chassis.
  • Sections are transported to the building site on their own wheels.
  • Multi-part manufactured units are joined at their destination.
  • Segments are not always placed on a permanent foundation, making them more difficult to re-finance.
  • Building inspectors check the work done locally (electric hook up, etc.) but are not required to approve the structure.
  • Manufactured housing is generally less expensive than site built and modular homes.
  • Manufactured homes sometimes decrease in value over time.

What Do the Differences Mean to You?

Restrictive Covenants and Deed Restrictions
  • Communities generally have no restrictions against traditional, site-built homes. Many housing developments do set minimum size requirements and stipulate you must build a house that conforms to published restricted covenants or be approved by an architectural review committee.
  • Most developments allow modular homes. Some do not, but, in those cases, the restrictions seem to have been imposed because of an ongoing confusion about the differences between modular homes and manufactured homes.
  • Restrictive covenants and deed restrictions often exclude manufactured homes.
Investigate the deed restrictions thoroughly before purchasing land for any type of new home. Further, obtain a copy of the Covenants, Conditions and Restrictions, also known as the CC&Rs for your new neighborhood. Study the plat map and know where your easement boundaries lie to make sure you do not place your modular home on top of any easements.

Are Prefab Modular Homes the Same as Shipping Containers?

Shipping containers can also be called a modular home but they are generally very different from your typical modular home.
A conventional modular home looks very much like a traditional stick-built home. It is hard to tell the difference. Whereas a shipping container home, constructed from an actual shipping container and not a replica, looks like a shipping container home, made from corrugated metal.
A single pod modular home built from a shipping container can be used as a cabin, getaway or tiny home. For more space, consider joining together two shipping containers.
At the time of writing, Elizabeth Weintraub, CalBRE #00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
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The Worst Reasons to Buy a Home




The Worst Reasons to Buy a Home

Getty Images
By Alaya Linton
Updated July 24, 2017
Pursuing homeownership is something that is ingrained in our culture, to the point that owning a home is considered an integral part of the American Dream. The path most of us are encouraged to take goes something like this: graduate college, get married, buy a home, have children. It seems to be just what you do.
Unfortunately, many people step into homeownership based on myths or misguided information.
  If you’re in the market for a home, beware of these common but ill-advised reasons for becoming a homeowner.

It’s the Right Time to Buy

“If you don’t buy now, you’ll miss your window.” Ever hear that one? A popular reason potential buyers chase homeownership is the so-called “right time to buy.” Whether it’s because interest rates are low or home prices are down, it’s easy to get caught up in thinking that if you don’t strike while the iron is hot, you’ll miss out.
Yes, buying when interest rates and home prices are low obviously works to your advantage. But favorable conditions in the housing market is not in itself a reason to jump into homeownership. Overextending yourself or prematurely purchasing all in the name of the “right time to buy” will later come to haunt you.

Social Pressure

Maybe you're the last in your social circle to buy, you can’t visit the in-laws without being asked if you’re looking for a home, or you’ve been told that owning is a sign of financial well-being.
Giving in to social pressure — whether it’s brought on by yourself or inflicted by others— will get you into trouble, especially when you're talking about a purchase that’s potentially hundreds of thousands of dollars. Put your blinders on and don’t let the urge to keep up with (or please) the Joneses dictate such a major financial decision.

An Expected Life Change

There is a misconception that about 10 minutes after you marry, you need to buy a home. Or that if you have a little one on the way, you cannot bring them home to a rental — because a baby needs more space and the peace of mind that mom and dad are homeowners.
Do not fall for the myth that you need a home purchase to accompany a significant life change. Your life will not be “complete” simply because you own. Rushing homeownership to coincide with the timing of marriage, birth, or another major event could cause you to purchase something you otherwise wouldn’t.

Renting Is a Waste of Money

The renting versus buying debate is nothing new. There are scenarios where renting makes sense, and some where buying does.
If you are in a strong financial position to purchase and you want to do so, then buying likely is a path you should pursue. But do not seek homeownership mainly because of the myth that renting is throwing your money away.
Comparing the two is more complicated than just sizing up the payments next to each other. This calculator will help you weigh the costs of renting against buying, taking into consideration the variables of both scenarios.

A Home Is an Investment

You might be considering homeownership because you see it as an investment.
But it can be argued that your personal residence is a liability.
There is no guarantee that the value of your home will go up. Depending on when you buy, when you sell, and how much you put down, it is possible to lose money on this “investment.” Throw in the costs of maintenance and upgrades; interest paid; and depreciation, and it is clear that there are no guaranteed returns on purchasing a home.

Determine Your Reasons to Buy

If you’re in the market for a home, carefully weigh your motives and your desire to own. If you’re primarily motivated by one of these reasons, take a step back and reassess your goals. You do not want to find out the hard way that you bought with the wrong intentions, or before you were ready.
Purchasing a home will affect your life and your finances for years to come.
Make sure you do it for the right reasons.



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