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Modular homes keep their worth?

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  • Modular homes keep their worth?

    I was wondering, if you buy a modular home in those parks (not an over 55, but a decent "trailer park"), will they keep their value or appreciate or depreciate as a vehicle since a lot of them are brought in on a trailer in "halfs"?

    Trying to make some life decisions.

  • #2
    In a park I doubt they would at all. We were actually looking at one oursevles that was a prefab that was on 4 acres of land outside of town. I think that would have kept its value and everyone thought so to. That is though after it lost right around 40k on its value. It was purchased for 120k and selling for 80k. I think after it was all said and done it would have stayed about the same on value. I think even as nice as it was it would have lost much more if it would have been in a park.

    From what I had heard it all boils down to placement of the home. If it is in a good place it may not go down much. If it is in a park, even a very nice one I could see it dropping. Hope that helps.

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    • #3
      Well, it's so true about placement. I am staying at my parents trailer, yes a trailer, and it's on the water in NJ and it is probably worht about $100,000 for a rickety trailer at about the end of it's life . . .why? Because it has a water view.

      Now. . .that being said, did you account for the market drop when you made your opinion?

      I mean of course, everyone's home lost value - whether you live in a rickety old trailer or a million dollar mansion.

      I guess I am asking, right now, if I bought a modular home for $120,000 let's say. . .you know. . .one of those ones that look like a real saltbox type of house, in 10 years would it at least keep it's value? Even if you don't own the lot?

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      • #4
        Originally posted by Scanner View Post
        I was wondering, if you buy a modular home in those parks (not an over 55, but a decent "trailer park"), will they keep their value or appreciate or depreciate as a vehicle since a lot of them are brought in on a trailer in "halfs"?

        Trying to make some life decisions.
        I would not buy one with the idea of it holding value, but in the mindset of saving interest, taxes and insurance.

        I have lived in a mobile as an youth and owned one. I paid 11k for a new 83 model 14x80, then sold it two years later for 6900, I could have gotten more but was young and in a hurry.

        If I wanted to be completely debtfree and I were single, I would not hesitate to buy an good deal on a mobile and save cash for a house.

        If not for my wife, I would pay cash for an fixer upper house and sell every two years moving up each time.

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        • #5
          I can't imagine they hold their value. Think about it. I see lots of 50 and 100 and 200 year old homes. When was the last time you saw a 50 or 100 or 200 year old trailer? Our house was built in 1964. How many trailer homes built that year are still around and livable?
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

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          • #6
            Originally posted by disneysteve View Post
            I can't imagine they hold their value. Think about it. I see lots of 50 and 100 and 200 year old homes. When was the last time you saw a 50 or 100 or 200 year old trailer? Our house was built in 1964. How many trailer homes built that year are still around and livable?
            I'm wondering if he is talking about those prefabricated modular homes. They are a step above mobiles.

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            • #7
              The article on modular homes in Wikipedia might give unfamiliar readers a better idea what these are. I was surprised two see the two story on pictures on Wikipedia, though I have been in one elevated two stories on stilts on an ocean bay.

              Modular building - Wikipedia, the free encyclopedia
              "There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid

              "It is easier to build strong children than to repair broken men." --Frederick Douglass

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              • #8
                A true modular is built to the national building codes. They are treated as houses and can get traditional mortgages.

                "Manufactured" housing (i.e. trailer homes) are built to HUD standards, and thus have different financing options - mostly treated like vehicles.

                A modular house had the potential to rise in value, just like any other stick-build house. The others will see depreciation. This, of course, can be masked by an increase in the value of the property it sits on.

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                • #9
                  You know. . .I am in healthcare, not real estate or construction.

                  Yeah, I think the better description is a "pre-fab" house but they deliver them in halfs and hook them together.

                  They definitely aren't a "trailer" per se. . .they look almost like a real house. They seem better insulated, better constructed, pitched roofs, etc. Whether they are built to housing codes or not, I don't know. . .but you actually go to a place and shop through different floorplans and they deliver the house.

                  What is that called?

                  (sorry I am so ignorant - to me it's a "modular home" - in 2 modules)

                  Anyway, the consensus seems pre-fab, modular or trailer is an investment loss so it may be better to upgrade to a real house. It's funny though - there is a house that was built in 1950 and I worry about it's shape more than a modular house.
                  Last edited by Scanner; 05-28-2010, 11:36 AM.

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                  • #10
                    I would not dismiss it based on the opinion of people who do not even know that modular homes are not the same thing as mobile homes. Look a little further. My Dad, who was building commissioner for one of the 50 most populous counties in the US, has a high opinion of modular homes.
                    "There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid

                    "It is easier to build strong children than to repair broken men." --Frederick Douglass

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                    • #11
                      Even mobiles have different values. There are northern built and southern built. The northern built are supposed to be better insulated for colder weather.

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                      • #12
                        In my mind their are three different types

                        Trailer homes - Which are mainly for trailer parks and are for the sake of moving if need be from one site to another. These seem to not hold their value at all and lose a lot of value.

                        Manufactured Homes - Built pretty close to the same as a "Trailer home" but build most times on a permeant foundation. These will likely lose some value unless the house is well placed or it the land matures in price. They are built to HUD standards which is a national housing code but not to STATE codes. Financing is different for them and most tradtional banks will not approve them. When we looked into one we found one that would approve us, it was a bit higher (about .2) and they needed 20% down.

                        Modular homes - Modular homes are the ones that threw me off. I thought they were "Trailer homes" but they are indeed not. They are built somewhat like Manuf. homes but they use HUD and State codes for better quality, these are the types of houses you see sometimes with two stories. These typically hold their value, however one would guess they would not mature as much as a stick built or site built home.

                        The Manuf. house we were looking at was very nice, it had sheet rocking so the walls were thicker and it was built on a full block basement. It was 3 bed 2 bath and almost 1,700 square feet on 5 acres of land out a few miles from the city and not even 10 years old. It was cherry, but we did not do it because it was bought for 120k and they were selling for 85k 7 years later. The prob wasn't the price of course it was a great great value for the money and land. But the fact that even though most people I spoke with said it would not likely decrease much more (especially since with the basement it would have been a 3,200 sq/f home w/ a couple more bedrooms and bathroom). I did not want to take a chance on losing money on it. My wife and I are in our early and mid 20's. If we were older and were not going to move in around 10 years most likely we would have bought it.

                        If you want a home for cheaper and don't mind losing the money and are going to stay their for a long time, I find no reason in not doing it. You will lose money on the home but you will have more sq/f and less payments on the home compared to a stick built home.

                        Just my two cents.

                        Nick

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                        • #13
                          Modular home decreases value price over the years. I would not buy one for investing or wealth inheriting purpose. I think modular homes are way better than a crammed apartment living in high cost of living area but at the same time, it is hard to "move up" if you get tired of living in a modular home since you tend to get less money than you paid on the modular home when selling thus less money for the down payment for the next house. It depends on how content you would be living in a modular home long term.

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                          • #14
                            It's sort of a grey area. Some Modular homes look like trailers, and they will most likely decrease in value over time. However, others are brick, set on a full basement, and have a second story. You would never know it's a modular home if someone didn't tell you. Something like this will increase in value just as the other homes around it in the market will.
                            Brian

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