6 Facts To Consider Before Buying a Manufactured Home

Manufactured homes are gaining more popularity in recent years, especially within the 55 and older community. And, why shouldn’t they? They’re simple. Cost-effective. And, everyone’s favorite – lower maintenance. But, how do you know if buying manufactured is right for you? What do all buyers need to know? If you’re considering the purchase of a manufactured home, start here by first considering these 6 facts!

1. Federally Regulated Construction

The US Department of Housing and Urban Development (HUD) oversees and enforces construction standards commonly referred to as the HUD Code. The HUD Code is in place to ensure the health and safety of homeowners. It sets standards for “design and construction, strength and durability, fire resistance, energy efficiency, transportability, and quality control.”

The HUD code ensures homes are safe, durable, and meet specific criteria in several key areas:

• Design and Construction: The HUD Code outlines specific requirements for the structural integrity of the home, including the frame, roof, walls, and foundation. This ensures the home can withstand various weather conditions and meet earthquake and wind safety standards.
• Strength and Durability: The code specifies the materials used and their quality. This ensures the home is built to last and can resist wear and tear over time.
• Fire Resistance: The HUD Code mandates the use of fire-resistant materials in specific areas of the home, such as walls, floors, and ceilings. This helps minimize the risk of fire spreading and allows for safe evacuation in case of a fire.
• Energy Efficiency: The code sets standards for insulation, windows, and appliances to improve energy efficiency. This translates to lower utility bills for homeowners and a reduced environmental impact.
• Transportability: While manufactured homes are typically placed on a permanent foundation, the code ensures they can be safely transported from the factory to the final location. This involves specific requirements for the frame and chassis to withstand the stresses of travel.
• Quality Control: The HUD Code includes provisions for inspections throughout the manufacturing process. This ensures that each home meets the code’s requirements and maintains a consistent level of quality.

By adhering to the HUD Code, manufactured homes offer a level of safety and quality comparable to site-built homes, providing peace of mind for potential buyers.

2. Manufactured Homes Are Not Mobile Homes…Technically

“Manufactured” and “mobile” are words that are pretty often used interchangeably. However, you might be surprised to find out they’re not actually the same thing; well, not anymore at least.

The term mobile home officially refers to a prefabricated home, built on wheels, that was made before 1976 (when the HUD Code went into effect). Anything after became known as manufactured. Think of it as a sort of rebranding. The new name tells the consumer that these homes are clearly built safer than mobiles were. Of course, it’s worth mentioning that a manufactured home is still movable. It’s factory-built on a steel-framed chassis for towing. Just, once it makes it to the homeowner’s land, it’s generally not moved again.

Here’s a breakdown of mobile vs manufactured:

Mobile Homes (Pre-1976):

• Built before June 15, 1976: Mobile homes refer to prefabricated homes built in factories before the implementation of the HUD Code in 1976.
• Limited safety standards: These homes were not subject to the same rigorous safety regulations as manufactured homes. This means they might have:
  • Weaker construction: They may have used less durable materials and simpler construction methods, potentially impacting their ability to withstand harsh weather or seismic activity.
  • Lower fire resistance: The use of fire-resistant materials might not have been as strictly enforced, potentially increasing fire safety risks.
  • Less stringent energy efficiency: They might not have been built with the same focus on energy-saving features, leading to higher utility bills.

Manufactured Homes (Post-1976):

• Built after June 15, 1976: Manufactured homes refer to homes built in factories after the introduction of the HUD Code.
• Enhanced safety standards: These homes adhere to the HUD Code, ensuring they meet specific safety and quality criteria in areas like:
  • Sturdy construction: The code mandates specific materials and construction methods, resulting in more robust and durable homes.
  • Improved fire resistance: The use of fire-resistant materials in designated areas is strictly enforced, minimizing fire risks.
  • Increased energy efficiency: The code sets standards for insulation, windows, and appliances, leading to more energy-efficient homes.

3. Manufactured Homes May Come Cheap…But, Don’t Forget the Cost of Land!

The US Census Bureau reports the average sale price of new manufactured homes is around $120,000. Naturally, the cost depends on location and size. Nevertheless, it is still substantially cheaper than buying a new single-family home. As of November 2021, that average price tag is about $417,000!

A manufactured home’s price might be right, but don’t forget to factor in your land purchase! Land can cost upwards of $10,000, depending on location and acreage. Also, remember utility connections. Electricity, fresh water, and sewage can cost around $25,000 or more.

4. You Don’t HAVE to Live in a Manufactured Home Park

Traditionally, manufactured homes were primarily associated with manufactured home parks, also known as mobile home parks. These communities offer pre-built pads with utilities and often come with amenities like community centers and pools. However, potential buyers shouldn’t feel restricted to this option. Manufactured homes offer surprising flexibility:

Owning Your Land

Instead of relying on a park, you can purchase land and have your manufactured home placed there. This opens up a wider range of possibilities:

• Location freedom: Choose a location that suits your preferences, whether it’s a quiet rural area, a suburban neighborhood, or even a specific development with larger lots.
• Customization potential: Depending on local regulations and the specific property, you might have more control over the surrounding environment. You could potentially build a deck, add a garage, or personalize the landscaping, creating a space that truly reflects your style.
• Potential for appreciation: Owning the land beneath the home can contribute to its appreciating value over time, similar to traditional site-built homes. This can be a significant advantage compared to homes within parks, where land appreciation is typically not a factor.

Finding the Right Land

Consulting a realtor specializing in manufactured homes can be invaluable in this process. They can help you:

• Navigate local regulations: Different areas have varying zoning laws and restrictions regarding manufactured homes on private land. A realtor can ensure you find land that complies with these regulations.
• Locate suitable properties: They can search for land listings that meet your needs, considering factors like size, location, and budget.
• Understand land costs: They can provide insights into associated costs like land preparation, utility connection, and permitting fees.

5. Manufactured Homes Can Be Really Energy-Efficient

Adhering to the HUD Code, which sets standards for heating and air conditioning, plumbing, thermal, and electrical systems, is a good start. Still, added measures for energy efficiency can be easy to do! Almost any updates that can be done on traditional homes, can be applied to manufactured homes. Solar panels, energy-efficient windows – just find a green contractor, and you’re in business!

6. Manufactured Homes Appreciate in Value

A common misconception surrounding manufactured homes is that they depreciate in value over time, unlike traditional site-built homes. However, the reality is more nuanced.

Factors Affecting Manufactured Home Appreciation

While manufactured homes built before the HUD Code (pre-1976) might have lower resale value due to less stringent construction standards, homes built after 1976 adhering to the HUD Code can appreciate in value at a rate similar to traditional homes, under certain conditions:

• Well-maintained condition: Just like any other property, regular maintenance plays a crucial role in preserving the home’s value. This includes addressing repairs promptly, keeping the exterior clean and presentable, and maintaining the landscaping.
• Curb appeal: The overall visual impression of the home, including landscaping, paint condition, and any exterior upgrades, can significantly impact its market value.
• Market conditions: The overall real estate market in your area plays a role. If the general housing market is experiencing appreciation, it can positively affect the value of your manufactured home, assuming it meets the other factors mentioned above.

Understanding the Nuances

It’s important to keep in mind that appreciation rates for manufactured homes might generally be slightly lower compared to traditional site-built homes, even if they meet the mentioned criteria. This can be attributed to factors like:

• Land ownership: In most cases, manufactured homes in parks don’t appreciate in land value, unlike site-built homes on owned land.
• Perception: There can still be lingering social stigmas associated with manufactured homes, which can slightly impact their resale value compared to traditional homes.

More Help

HUD Office of Manufactured Housing Programs Homepage

Minimum Property Standards

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