BSC Summit

Thursday, August 11, 2016

Site Builder Defends Their Homes Against Modular

I found this article by a site builder and read it about 4 times and decided I needed to share it with everyone. While not really saying anything bad or derogatory about modular homes, the article sure plants a lot of doubts in home buyer’s minds about modular.


Here is the article and the link to it. I have highlighted some parts of it in RED.

Building a new home vs. buying a modular home:
What you need to know

You have a piece of property that would be perfect for your home. All that is left is deciding what kind of home you want – one built for you from the foundation up or a modular home.

While modular homes have come a long way in terms of quality and variety, there are key differences between a pre-fab home and a newly built home that consumers need to understand, says Joe Houk Jr., vice president of sales and marketing for Heritage Homes of Alabama.

"A lot of people believe it costs more to build your own home, but that's not necessarily the case," says Houk. For instance, Heritage builds homes that range in price from $61,700 to $200,000, depending on the location and amenities.

With a modular home, buyers have to pay for transportation of the home and setting the home on the property.

Here is a list of items that are not included in the quoted price for either a newly constructed home or a modular home:

Lot clearing
Lot leveling
Septic tank  and water line installation
Driveway construction
Landscaping

"These are all the same things you would have to do to your lot to get it ready for a modular home to be placed on it," said Houk.  "There really aren't many differences when it comes to getting the lot ready for your home."

Another common misperception: Building your own home is a long process, requiring a generous time investment.

"Typically it takes six to nine months from start to finish," says Kristin Houk, director of marketing for Heritage Homes – and Joe's daughter. But the long-term benefits of taking the time to build your own home are worth it, says Joe Houk.

For instance, some home buyers prefer a home that is anchored to a concrete slab rather than placed on a foundation. "I just think people feel more secure," he said. "It definitely makes a huge difference in perception."

Perception certainly matters in terms of resale value, and traditionally constructed homes seem to hold their value better than modular homes, he says.

Houk urges potential homeowners to think about the investment for themselves and their children.

"Keep in mind that you may not be the one selling your home – it could be your children," Houk says. "It's important to consider your investment long-term. Which one will hold value? Which will sell more easily? What is the best investment for your family?"

5 comments:

George Morgan said...

The writer used the term " anchored to a concrete slab " vs " placed on a foundation "...one gives the feeling of solid construction ,, the word anchored gives one that feeling...and then the term " placed "on a foundation...gives the feeling of something designed to be taken off the foundation...does the writer deal in actual modulars or is he from the double wide world ??

I have heard the term Anchored referring to double wides....

just an observation .....

Anonymous said...

Someone must be getting in his knickers!

Sheri Koones said...

Regarding the anchoring issue -according to a FEMA report of December 21st 1992, regarding Hurricane Andrew in FL - "Overall, relatively minimal structural damage was noted in modular housing developments. The module-to-nodule combination of the units appears to have provided an inherently rigid system that performed much better than conventional residential framing."

Regarding time to build - Modulars in general are constructed much quicker than site-built homes. More often than not - site-built houses take longer than 6 to 9 months to build. Modular homes can be built in half that time.

Rarely talked about are the expensive change orders that builders charge customers on site built homes - this is literally eliminated in modular homes where the plans and costs are set before the house is built.

Another issue is the time builders take off from building because of weather conditions on site - again this is eliminated for prefab houses - factories can remain open 12 months a years.

Prefab is clearly the construction of the future whatever bias this builder might have.

Lorne Kelly said...

As a custom home builder in Canada, we understand the unique differences of site built (or stick) and the use of modular technology to achieve results. The author of this story is carefully using terminology to shape the outcome he wants...that site or stick built is in many ways superior or better. Where is the assessment of weather's impact on the build...the added moisture that comes with a site build. Where is the assurance of quality control and the inherent value of a 3rd party extended structural warranty. I wonder if the writer is losing a piece of his market share because the modular industry has caught up and may be passing his ability to compete?

Sheri Koones said...

Regarding the anchoring issue -according to a FEMA report of December 21st 1992, regarding Hurricane Andrew in FL - "Overall, relatively minimal structural damage was noted in modular housing developments. The module-to-nodule combination of the units appears to have provided an inherently rigid system that performed much better than conventional residential framing."

Regarding time to build - Modulars in general are constructed much quicker than site-built homes. More often than not - site-built houses take longer than 6 to 9 months to build. Modular homes can be built in half that time.

Rarely talked about are the expensive change orders that builders charge customers on site built homes - this is literally eliminated in modular homes where the plans and costs are set before the house is built.

Another issue is the time builders take off from building because of weather conditions on site - again this is eliminated for prefab houses - factories can remain open 12 months a years.

Prefab is clearly the construction of the future whatever bias this builder might have.