2007-01-10 04:36:04 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
'Modular' is a term many people mistake for manufactured.
Modular homes are pre-built in sections in a factory using quality products and approved building techniques. They are normally stick built and brought to the job site in unassembled sections. Once combined the product is normally indistinguishable from a site built home. Modulars are treated as SFR by most lenders and will appreciate in value. In fact most are actually stronger then site built since they typically use 2X6's for framing versus 2X4's in a site built home.
Manufactured homes on the other hand will depreciate over time. They are assembled in a factory on a steel frame and then towed to the job site. They can come in 1-4 sections depending on the size of the home. Once on the site they are placed on the foundation, services are hooked up and the wheels taken off. The determining factor here is that the steel fram can not be removed and will always be a part of the home. This type of structure is difficult to deal with since it technically can be moved from the property at anytime using basic techniques. This mobility makes lenders scared since you could default on the loan, tow the home away and what does the lender have? A plot of land with no home on it!
So depending on the exact home your really discussing... modular can and will appreciate and manufactured will depreciate.
Kevin 866-562-6838 x 106
kruorock@firstratelending.com
2007-01-10 07:21:25 · answer #1 · answered by Mudisfun 3 · 0⤊ 1⤋
Stick built homes do not depreciate under normal market conditions. They actually appreciate in value. The same goes for true modular homes. Doublewides and what are termed "on frame modular" homes depreciate in value over time. Though usually the value of the land they sit on increases, which increases the overall value of the home.
2007-01-10 04:45:18 · answer #2 · answered by Joe L 3 · 1⤊ 1⤋
Yes, they do depreciate faster than a regular home. That has to do with the fact that they're constructed with cheaper products and their overall ability to last is not as long as a regular constructed house. a regular house can last hundreds of years based on its construction. Modular homes usually don't last more than 40 years without complete deterioration.
2007-01-10 04:44:26 · answer #3 · answered by Cherokee Billie 7 · 1⤊ 1⤋
Years in the past i offered a house from one among those trailer locations. They instructed me it replaced right into a double huge MODULAR. i found out later they spoke out of turn. there's a difference. They thank you to inform is the way it relatively is introduced in. If it relatively is introduced in like maximum -- in a million/2 -- it relatively is a trailer. A modular is introduced in in a distinct way, with something like a fork raise. So if it relatively is trucked-interior an identical way as a trailer, it relatively is a trailer. Admittedly, I enjoyed my double huge. the only element lacking with them is an attic, so be conscious. yet with abode expenses being at an all time low, there is way less human beings determining to purchase double wides suitable now. do no longer decrease cost them, however: we've been given a number of thousand money ($5,000 i think of) and a wholesale catalog, and have been waiting to grant our abode the way we needed. It replaced into incredible!
2016-12-16 06:04:59 · answer #4 · answered by roedel 3 · 0⤊ 0⤋
Houses are very rarely depreciated.
But modular homes are depreciated on the same basis as machinery & equipment i.e. they rarerly appreciate.
2007-01-10 05:43:09 · answer #5 · answered by boston857 5 · 0⤊ 0⤋