Manufactured homes have many pros and cons. Today, I’ll be addressing just a few of these from a Realtor’s perspective that has lived in, and sold, a ton of manufactured homes over the years. You may be surprised at one of these pros, but a couple of the cons may surprise you too, so be sure to read through for each of those.

FIRST, we need to define what a manufactured home IS. A manufactured home, also known as a mobile home, or a trailer, is a prefabricated home, built and assembled in its entirety, that is then transported to a site where it is placed on a foundation of some sort. For the purposes of our discussion today, we’re addressing manufactured housing being placed on land that is owned by the homeowner, so it’s classified as real estate. As a Realtor®, those are the only kind I can help with. If you’ve got real estate needs of any sort here in Central Florida, simply pick up the phone and give us a call.

Expense

Let’s start with the most common pro of manufactured homes, the cost to purchase. Manufactured homes tend to be less expensive. As of today, a brand-new manufactured home will start around $55,000 for the home itself, although you can easily spend $150,000 without batting an eye, depending on the upgrades that you choose. Now this is often BEFORE setup fees, permits, wells, septic systems, the land to put it on, etc. That is still a LOT of dough, but it’s often still less, sometimes about half, of that of a conventionally built home, at least on a price per square foot basis. Plus, taxes on a manufactured home may be less than that of a conventionally built home. An existing manufactured home on land typically costs significantly less than that of a conventionally built home. It’s worth noting here that any manufactured home with lot rent is not considered real estate. Be careful here, because these homes could cost significantly less, but that lot rent could be significant and could rise for as long as that home is on that lot in a community.

Nice?

I don’t really understand it, but there seems to be this thought that living in a manufactured home is somehow less desirable than a conventionally built home. A few years back I sold this absolutely gorgeous quadruple wide manufactured home that was like a castle. The primary bedroom and bathroom suite were like half the size of my house. It had beautiful, ornate trim, walk-in closets, granite countertops, and a kitchen that was as big and as nice as almost anything I’ve seen. Plus, they’ve got more options for customization than you can imagine, all at a lower price as I noted before.

Versatility

Because of this lower cost, manufactured homes offer a good bit of versatility.  Manufactured homes can be placed on land and removed to be replaced by a conventionally built home. They aren’t making any more land, and if you’ve got the right location, then sometimes it’s better to keep the land and simply change the home. If you DO decide that you want to move your manufactured home somewhere else, that’s usually an option. You may have to spend $10,000 to $20,000, depending on the logistics, but I’ve had numerous manufactured homes moved over the years and was glad I did because the numbers worked for my situation. It’s important to note that if a mobile home is moved, a future buyer may have trouble obtaining financing, which is a downside to this pro in my mind.

Time to “build”

The time to build a conventionally built home may be between six and twelve months, whereas you can literally walk into a storefront and pick out a home, and potentially have it delivered just a few weeks later. Of course, if you want one custom made, it could take just as long as a conventionally built home.

Energy efficiency

Back in the day, these manufactured homes weren’t built with energy efficiency in mind, but today they are. They’ve got all sorts of features to help keep utility bills down. From Energy Star shingles and appliances to ventilation systems, to OSB sheathing, these aren’t your grandmother’s manufactured homes.

Safety

Just the other day I heard someone say they’d never buy a mobile home because of the hurricanes here in Florida and I just chuckled. Yes, a tornado CAN destroy a manufactured home, but I’ve seen those same tornadoes tear up a concrete block home, too. The safety requirements that HUD, the Department of Housing and Urban Development requires are quite stringent, and whenever a home is sold with financing, they’re often required to be brought up to the latest safety codes.

It can be quite a headache, and an expense, when selling a home, but it’s often comforting for a new homeowner to know that their home’s safety is secure. You just don’t get this updating with a conventionally built home. There are a ton of these manufactured homes out there, but have you ever noticed how many of them were built back in the 60’s and 70’s? We’ve got hurricanes here in Florida just about every year and these homes are still standing strong!

Stigma

Next, let’s address some of the cons of manufactured housing. The lingering stigma of manufactured homes is still “a thing”. Some people still look down their noses at the IDEA of manufactured housing. I believe local governments can do that, too. Many counties, at least here in Central Florida where I sell real estate, don’t allow for manufactured housing to be placed on most of the land, suggesting that it degrades the overall housing market in the local area. Perhaps this is why we often see manufactured housing in more rural areas. Of course, there are some that treat their homes like trash, but the way I see it, that happens with conventionally built homes, too.

Financing

Yes, contrary to popular belief, you CAN get financing for manufactured homes, and sometimes you can even get the land that it sits on financed too. However, financing for manufactured housing tends to be more expensive. Interest rates fluctuate significantly from time to time and lender to lender, but they can be significantly higher than financing with a conventionally built home, and that doesn’t even consider the upfront costs, or collateral that may be required.

Long-term value

Now I may get flamed for this one, but I’ve heard it said many times that manufactured homes do not maintain their value, but I can tell you with certainty, after selling probably a hundred mobile homes over the years, that manufactured homes as real estate DO appreciate. However, the con here is that they often do not appreciate at THE RATE that conventionally built homes appreciate, but they’re still appreciating. How does this appreciation correlate with the initial investment? Is the initial investment WORTH spending to obtain this appreciation? These are tough questions that I believe are dependent upon the homeowner’s situation and are questions that I believe are worth considering.

Plumbing

Years ago, manufactured housing relied heavily on polybutylene plumbing, which was the latest and greatest innovation at the time. However, this plumbing eventually showed signs of these pinhole leaks and today many insurance companies are having a fit, raising rates and declining coverage for many with polybutylene plumbing. When I’m meeting with a seller of a manufactured home today, addressing the plumbing is one of the first things I do.

If you  have any questions about manufactured housing or any other real estate questions, please don’t hesitate to give me a call. To watch our video on The Pros and Cons of Manufactured Housing or other topic, please visit our YouTube Channel.

Published on June 05. 2024 / no comments.