Honest Disclosures...         

     The more I work in the real estate industry, the more it intrigues me. For example, what is the definition of "Site Built"? For the average laymen purchasing a property, or some Realtors® representing one party or the other, one could or would, logically assume the definition to mean, "Conventional Stick Built" construction from ground up, on site by tradesmen and laborers. 
     But what about manufactured housing? These properties are "constructed" by tradesmen and laborers as well. They are "Conventionally Stick Built" off site, manufactured in an assembly plant, then shipped to the construction site on trailers where they are put together "on site" on conventional foundations in an controlled environment where the final assembly takes place. All this is designed to maximize profits for the builder. In some areas, these too carry the label of "Site Built". So my question to the industry is, are they "Site Built" or "Site Assembled"? It seems as if the real estate industry, as a whole, makes no differentiation between the two. However; the unsuspecting public associates the term "manufactured housing" with trailers or modular homes. These are often considered to be "Sub-Par" construction as compared to what the public considers the "norm" for the industry. Oftentimes, if the buyers knew the difference, they would not have put an offer in on the property.
     Then comes the area of "Honest Disclosure". For arguments sake, one could assume that the Realtor® or home owner does not know that the property is manufactured housing. However; the home inspector knows, or should know that the construction methodologies used do not conform to what the public deems "standard construction" or what one could consider "Conventional Stick Built" practices by design. Who now bears the burden of "Honest Disclosure"? How do they disclose their findings as to not upset the apple cart? 
     Home inspectors are being sued out of business due to failure to properly disclose their findings. However; they must rely on Realtors® for their existence. It is a slippery slope we constantly walk. Is it not time, the industry as a whole takes a look at how they define or what constitutes the definition of "Site Built" vs "Site Assembled"? Should not the unsuspecting public and agents as a whole be aware of the differences between the two construction methodologies? Or is the fox, once again, looking after the chicken coop?

 

This posting and the contents herein are the intellectual property of Michael Thornton CEO of Complete Home Inspections, Inc. We provide quality real estate and commercial inspections for Brentwood, Franklin, Nashville, Davidson, Williamson County TN and surrounding counties. This post is a contribution to the ActiveRain Real Estate Network.
    

This posting and the contents herein is the intellectual property of Michael Thornton, CEO of The Complete Group.

Complete Home Inspections, Inc
615.661.0297
Brentwood, TN
 
Our Website address is:

This post is a contribution to the ActiveRain Real Estate Network.

 

 
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45 Comments on Honest Disclosures...

20 Most Recent Comments Displayed Show All

APR
12
2012
525,270 Points 10 Featured Posts Outside Blog Called Shot Master

Modular, Manufactured, Pre-Fab, Mobile, whatever ... if it's ever been dragged down a road, it needs to be Disclosed.

 
9:02pm • #26
1,100,447 Points 94 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Don't have much of the site assembled homes around here. Never thought about it being a disclosure item before.
9:30pm • #27
APR
13
2012
Outside Blog Called Shot Master

Michael,

I had a situation at an inspection  that everyone said that they had no idea it was a manufactured home until I told them.  In fact for a short time they argued that it wasn't.  The additions and interior decorations made the exterior and interior look custom.  I proved that it was a manufactured home but it was the little things that made me think about the type of  construction early in the inspection, things like ceiling height and trim are nearly always an indicator before the bolted beams are found below and above the living area.
3:56am • #28
1,055,964 Points 287 Featured Posts Outside Blog Called Shot Master

Michael, Definitely a difference in my mind and something I'd personally want to know.  Until site assembled has the same quality levels as site built they need to be distinguished from each other.
4:19am • #29
590,765 Points 62 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master
There are a lot of terms that are subject to interpretation. People use the terms updated and remodeled interchageably. They are very different.
5:26am • #30
731,668 Points 15 Featured Posts Outside Blog Called Shot Master

Michael, I think the terms are left open to interpretation. Best to know how these terms are defined locally for the specific area.
7:34am • #31

Disclose, disclose, disclose.  Great Post!
8:00am • #32

Hi Michael. One would think that the sellers and home owners would know which type of home they bought, so once it is placed on the market for sale, that listing agent will be able to properly disclose which type of home that it is. There is a huge difference it seems between a site built vs a assembled built home. Disclosure should be required. Sorry to hear that inspectors are being sued over this issue.
9:02am • #33
590,865 Points 56 Featured Posts Outside Blog Called Shot Master

Forgot to log in at comment # 35

Hi Michael. One would think that the sellers and home owners would know which type of home they bought, so once it is placed on the market for sale, that listing agent will be able to properly disclose which type of home that it is. There is a huge difference it seems between a site built vs a assembled built home. Disclosure should be required. Sorry to hear that inspectors are being sued over this issue.

  
 
9:04am • #34
500,277 Points 13 Featured Posts Outside Blog Called Shot Master

Hi Michael, we can usually tell and the proberty appraiser is a resource as well.
9:35am • #35
120,116 Points 1 Featured Post Outside Blog

I have heard it said, maybe here, that you can't over disclose. I have to agree.

Having said that, I consider a modular home built in a controlled environment potentially a better built home than a site built one, especially here in Minnesota. Imagine the difference in roofing inside a warmed building as opposed to rushing to get a roof on before a storm hits. Quality can go fairly quickly if you are wet and freezing. Also they must be strong enough to withstand the rigors of over the road transport without damage.

Downside is that they are fairly bland in styling, what I call personality free.
9:54am • #36
154,437 Points Outside Blog

As another poster commented, if it was ever on wheels, it's not "Site Built".
10:19am • #37
1 Featured Post Outside Blog Called Shot Master

I want inspectors to be honest and protect my client.  I don't like the occasional inspector that will make something easy to fix sound like it is a scary problem.  This is just don't get.
11:40am • #38
702,782 Points 39 Featured Posts Outside Blog Called Shot Master

I have to say that no one has ever asked that question. I assume that when you get up into the custom construction range that might come up but I'm not sure why.  Disclose what if no one really cares or understands to care?  I was not aware of any problems with 'manufactured offsite brought to the home' problems.  I know that many times the trusses are preconstructed elsewhere & shipped in.

Travis has a point about 'home parts ever being on wheels'. That sums it up for me then, not site built.
12:15pm • #39
587,638 Points 106 Featured Posts Outside Blog Called Shot Master

Interesting. They must build them differently in other parts of the country.

Our area is littered with everything from single wide mobile homes to huge modulars - but anyone driving by can tell that's what they are. They simply don't look the same as home built from scratch, on site.

It's amazing to me to think that a seller would not know the difference.

1:42pm • #40
548,932 Points 9 Featured Posts Outside Blog Called Shot Master

Michael:

I don't think that is an issue here.  At least I have never heard about it.  Some of our older homes, bungalows were built from kits.  Home's build in the 1900-1920.  But I don't know if that means they were assembled or built at the site.
1:51pm • #41
196,487 Points Outside Blog

FYI, manufactured homes built specifically for permanent placement on a property's foundation are built and inspected to meet or exceed any city or county building codes anywhere in the USA. Any manufactured home is as good as any stick built home and often times is a better built home because of the manufacturing process and inspections that are conducted during the construction process. 

All manufactured homes have tags to identify their existence and is recorded when first sold so this information should be readily available to any buyer, so go to a home show and examine the quality of a manufactured home and I'll bet most would be surprised at what they see.
3:36pm • #42
1,024,215 Points 15 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Tell the truth - but have a good bedside manner and don't comment if you are not qualified in that area.
8:56pm • #43
APR
14
2012
424,610 Points 16 Featured Posts Called Shot Master

Michael, great information, thanks for sharing.  It is an issue that I have not see so far.
12:01am • #44
APR
16
2012
293,252 Points 3 Featured Posts Outside Blog Attended Rain Camp

It does make a difference for lending and possible resale if it's a stick built or manufactured home. I haven't seen this  commonality with the "site built" used as much around Flagstaff, but will certainly keep an eye open. Some manufactured homes have been able to get foundations put on and change their status with the county to single family, but my understanding is that with lending, once manufactured, always manufactured.
5:26am • #45

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Michael Thornton - Nashville, TN area Home Inspector - 615.661.0297

Brentwood, TN

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