Thoughts of R Scott Pierce Real Estate Appraiser

What is a manufactured home and how does it differ from a modular home?

I keep getting ask this question and thought I would clarify the difference between manufactured homes and modular construction.  As you might know, modular homes have bursted on the scene during the past few years.  More blogging on this later but heres the difference as described by my website www.rscottpierce.com

A manufactured home (also known as a mobile home) is a single or multi-sectional home built on a permanent frame, like a steel undercarriage/chassis, with a removable transportation system (hitch and wheels). The unit is permanently attached to a site-built foundation and is subject to the 1976 federal standards established by the Department of Housing and Urban Development (HUD).

A modular home is constructed in a factory using conventional home floor joists and delivered to a site on a trailer or flat bed truck. The delivered home may be in the form of panels that are assembled at the site, may be pre-cut and assembled on site, or may be pre-built and delivered in one piece. The home, panels or pre-cut panels are lifted from the trailer and attached to a foundation. A modular home may be single or multi-storied. Modular homes are not subject to HUD standards, but must be built to state and local Uniform Building Codes.

During the past 2 years hattiesburg has experienced value increases up to 30%, and to talk to several home-owners and builders that percentage can be as high as 50%.  (forgive them for they do not know).  Hurricane katrina is the culprit for this confusion.  Demand has been very high during the last 2 years with transfers from new orleans and the surrounding southern counties and parishes. 

CORRECTIONS ARE COMING:

In the coming months we could see a correction in the market and notice values start falling in some areas.  With that being said; appraisers, and realtors,  are gonna be frustrated with "what happened" comments from homeowners and builders that think this trend of growing values will continue.  Remember appraisers are  "slaves to the market" if you will.  Even if cost continue to rise, market values will have to eventually effect builders who regularly use the excuse of cost over-runs. 

BE CAREFUL WHO YOU TRUST:

If your thinking of building a new home, look at the numbers hard, and do not always depend on the builder for your appraisal.  Builders generally have close ties to one or two appraisers which could make your future refinancing very difficult, when you find your original value was stretched by the builders appraiser.  I suggest two appraisals with almost every large transaction.  That extra fee could save you a lot of heart ache and money in the future.

THIRD PARTY APPRAISALS ARE BEST:

This is a new trend in the lending and appraisal business.  Basically lenders hire third parties to order appraisal reports.  Meaning, very little pressure is put on appraisers to hit a number.  These third parties can be found on line and include companies like...LANDSAFE, INC. AND APPRAISALPORT.    

LETS BLOG:  

Please add thoughts to this blog and I'll try to answer with future comments.  I appreciate you reading and if you need any real estate answers, etc., visit WWW.RSCOTTPIERCE.COM