Choosing the right home to buy can be a nerve-wracking process, especially for first-time homebuyers. Property is one of the significant purchases one can make in their lifetime. When not done properly or without prior research, it can mess up your financial stability.
Today, there are many different forms of housing options. Some people live in mansions and others downsize into condos. Today we look at manufactured homes and how they work. With the worsening housing crisis worldwide, easy and affordable housing is needed now more than ever.
If you’re seeking a new way to acquire a house, this may be the answer. Continue reading to know more about it.
What are Manufactured Homes?
Manufactured houses are constructed in off-site factories before being moved to the actual property where they are intended to be.
Manufactured housing has experienced a lot of improvements in the last couple of years. It has more features, better quality, and a better public impression. That is why many people opt for manufactured homes in recent times.
A subgroup of manufactured housing is modular homes. These are homes that are split into many sections that are built in another area. They are then brought to the property and combined there. The building process is because manufactured housing can vary in size. Some homes are as small as 500 square feet, while some can be as massive as 3,000 square feet.
Manufactured Housing Costs
The costs of manufactured homes usually are for the lower-income bracket individuals in the more rural areas of a country. This is an excellent first home choice for young professionals and young couples. It can also be a good option for senior citizens looking for a home to spend their sunset years in.
The costs of a manufactured home can depend on a few things. It can depend on the size, the area where it will be built, the amenities, and many more. Ultimately, manufactured homes are more cost-efficient compared to site-built homes because of a few factors:
- It is built in a factory. (No weather delay, can be made 24/7)
- Mass-produced (fewer costs)
- Lower property tax compared to site-homes
- Easier to maintain mortgages
- Less construction on-site
- Easier to get mortgages on manufactured homes
The prices on these homes can start as low as $45,000, and the more expensive ones are pushing upwards of $120,000 to $130,000. The price also depends on the kind of manufactured home. There are single-wide homes, double-wide homes, and triple/multi-wide homes.
It may seem like the same prices for on-site homes. Manufactured houses give you more space and more quality for the money you’re spending. There is a notable difference when you compare a $50,000 manufactured home to an on-site home.
Pros and Cons of Manufactured Homes
Pros
Cost-Friendly
When compared to traditional types of homes, manufactured housing allows for lower average costs. This makes the dream of becoming a homeowner that much more attainable, even for the everyday working person. Manufactured housing can be one of the major combatants of the growing housing shortage.
Sturdiness
Manufactured homes abide by the HUD code approved in 1976. It was federally mandated and administered for proper factory production processes. It is also for houses to meet a specified standard for structural integrity and other safety factors. Everything from natural disasters to its transportation to the site must be considered when the home is built.
Flexibility
Long-term changes are available for manufactured housing. The starter manufactured homes have very affordable costs. Owners can have the option of eventually expanding their starter homes with additional components. The houses can also be relocated to another land if the owners decide to move. Manufactured homes can adapt to changing elements in a person’s life.
Efficient Building and Installation
Buying a manufactured home can allow the owners to move in sooner than traditional homes allow. The houses can be built in as little as 2-3 months and be ready for occupation. The home can be transported to the land and installed in about a day or two. Before you know it, you are already like being inside your new home.
Energy-Saver and Environment-friendly
Because manufactured homes follow the HUD code, it is considered dynamic energy consumption and being environmentally conscious. Many features of the home contribute to that, like energy-efficient windows, insulated skirting, smart water heaters, etc. The lighting and water in these homes are also tweaked to be more efficient and productive while minimizing wasted energy.
Minimized Construction Risks
Since the houses are built in an off-site factory, there are little to no construction risks and problems a budding homeowner will face. Stuff like shipping delays on materials, noise complaints from neighbors, typhoons or thunderstorm delays, worker accidents, theft all can cause problems. Both the manufacturer and the owner will have an easier time.
Mix and Match
These homes will provide the owner with more choices about how they would like to customize their house. Many components can be added to these homes to fit specific wants and needs. Homeowners can grow their starter homes to bigger ones as their income increases.
More Bang for Your Buck
The quality and finishes of these homes are top-notch. The flooring, amenities, and design can compete with the best of site-built houses for less cost. Manufactured homes will beat traditionally built homes more often than not if there is a given budget for a home. Even the finishes like the flooring, roofing, and other amenities can be customized. The process of adding these elements will even be faster than with site-built homes.
Cons
Availability and Adaptability
Manufactured housing is a reasonably new type of home. This is why the other less-developed areas and states may not have even heard of these kinds of homes. It would prove to be a disadvantage because lands in rural and suburban areas may only allow site-built homes.
Bad Wrap
Even with the rapid growth and progress in improving these manufactured homes, many areas still have a negative bias towards these. Some rural communities even ban manufactured housing altogether. So if you’re planning to move to a small quiet town outside of the meccas, it might pose a problem for manufactured homeowners.
Long-term value
The prices on these homes may not see a steady increase as it grows older. It might even experience a steady decrease. The only silver lining is that the property taxes may roll with the tide as well. But, as this market continues to expand, it may change the pace for the prices of these homes over time.
What to Do and to Avoid When Buying a Manufactured Home
What To Do
Choose the Right Type of Home For You
Take a proper examination of where you are in your life. Are you still young and single, living life to the fullest? Will you start a family in the next couple of years? Do you live with a partner? All these elements will help you decide what kind of home is right for your lifestyle.
Consider Your Budget
Examining your financial status is also essential to avoid biting more than you can chew. Mortgage loans can finance your purchase of a manufactured home, but there are other things as well. There may be more suitable financing programs for this situation.
Consider the Location
Manufactured homes may not be the best option for the less progressive areas. It may get some nasty looks from the neighbors or pose problems with zoning and property restrictions. For more modern neighborhoods, these homes won’t be a problem.
Things to Avoid
Ignoring Warranties
A homeowner’s manual, as well as warranties, will be given to you once the sale of the manufactured home is final. This will provide you an idea of what appliances and amenities in your home are covered by a warranty. You should be aware of the things that can void the warranty.
Worsen Your Credit Score While Closing
While closing on a manufactured home purchase, big purchases or taking on debt might derail that process. It is important to review things that can negatively affect your manufactured home buying process.
Buying New vs. Used
The main advantage of buying a used manufactured home is that these homes depreciate in price, so you might get a good deal. The con is unlike purchasing new manufactured homes. You won’t be able to customize the home to your liking. Everything from the cabinets and kitchens, all the way to the finishes, can be customized when buying new.
To Sum Up!
Manufactured housing can be a great option to become a homeowner early in life. It can cater to low-income individuals while adapting to their growing needs as they come across more money. It has its own set of pros and cons. These homes are one of the fastest-growing markets and may prove to be the future of housing. Is it better than site-built homes? The answer to that still remains.
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