Buying a home is a major life milestone for people who are looking to settle down with their family or loved ones. Understanding the difference between modular homes and traditional homes before building or buying your house can help you make decisions that you will appreciate in the future.
Here’s everything you need to know about modular homes and their resale value!
Modular Homes & Their Resale Value
Modular homes are equivalent to stick-built homes regarding resale value. Different modular manufacturers offer homes in different layouts, sizes, and construction timing. They are titled as “real” property so that homebuyers have the same legal rights and protections, same financing options, and same tax treatment as stick-built houses.
Estimating the resale value of any home depends on variables like size, location, and curb appeal. Since modular homes are not highly concentrated in many housing markets, it creates the impression that they do not appreciate in value like homes built on-site. In reality, modular homes appreciate at the same market rate as site-built homes in the same neighborhoods.
Here are a few reasons why these homes can be as valuable as stick-built homes when it’s time to sell.
The foundation of a home is one of the greatest factors that determines its durability and longevity. Modular homes are installed on a solid, permanent foundation – similar to site-built homes. This is very different from mobile homes that are built on a chassis and can be shifted from one location to another. Under state law, a home built on a permanent foundation qualifies to be treated like any other piece of real estate.
Since modular construction takes place in a controlled environment, it is more likely to achieve better construction quality than a standard site-built house. Every aspect of the home (the sturdiness of the walls, roofing, and other structures in the home) is taken into account before it’s assembled on a permanent foundation. This workmanship quality and consistency of the building process boosts the value of modular homes because the materials are similar to or better than what is used in site-built homes.
Same Materials & Systems
A modular home isn’t intended to move once it’s been placed on the lot. That means that modular home builders use all of the same materials as traditional home builders. And, they are held to identical building standards.
The mechanical elements of a modular home are inspected before being delivered. The inspectors certify that the home is built with energy-efficient HVAC, electrical systems, and plumbing. They also verify that the homes are built with quality insulation.
Age & Condition
As long as a modular home is in great condition and abides by the local building codes, its value grows the same as a regular home. Just like with traditional stick-built homes, things like a lack of modern improvements, poor upkeep, or neglected maintenance can negatively impact the resale value of a modular home. A modular home that is in ideal condition is likely to have a better resale value than a traditional home that is neglected and in poor condition.
Build a Home That Will Appreciate Over Time
Both traditional and modular homes increase in value over time. Every area is different and the housing market is always changing. It’s important to understand the appreciation rates for your local area and what you should expect from your local market.
If you have any questions about modular homes, contact the pros at Family Dream Homes. We’re here to help you every step of the way!