Modular vs Manufactured, Get it closed!!!

Real Estate Broker/Owner with Complete Realty, LLC

At recent Flint Chapter Women's Council of Realtors meeting, modular and manufactured homes were discussed.

Modular and Manufactured Homes are built in a factory. The factory is climate controlled. Great building conditions and assembled on the property.

Modular homes are appraised same as a stick built. It is possible for a 2nd homeowner, Realtor® Appraiser and Home Inspector not to be able to identify the home is a modular home. When the modular home is put on the foundation, it's the same as a stick built home. Modular homes are made to BOCA code, conforms to city and township building codes. The modular home is financed the same as stick built home.

Manufactured homes depreciate very quickly. A manufactured home contains tags on each outer section and in the inside. The tag on the inside of manufactured homes can be placed in the cupboards, on the furnace room door, the electrical panel and many other places. The tag contains the serial number, make, model, vin and year built. The tag information is needed for financing. The manufactured home is titled as a car with the secretary of state.

If the tags are removed, a surety bond must be purchased and the proper paper work filed to clear the title.

For most types of financing, the manufactured must have an engineered inspection. This inspection assures the lender the wheels are gone and the home affixed to the property and cannot be moved.

The next step for a manufactured home is the affidavit of affixture. This document removes the title forever. The manufactured home becomes part of the real estate. Most title companies will take care of this paper work.

Thank you to Ben Guzak of Allied Appraisers and the Citizens Bank crew...

Comments (7)

Wayne Miller
San Diego, CA
Thanks for the post...hmmm, both seems to be the same to me.
Oct 06, 2007 08:03 AM

Modulars are much simplier to purchase.  Modulars are built to city and township codes.  Modulars appreciate.

Manufactured are more difficult and depreciate.

Oct 06, 2007 08:08 AM
Craig Smith
Re/Max Achievers - Frederick, MD
Frederick MD Real Estate
Yes, most people don't know the difference. If I say modular they think mobile. Modular are just like stick built and very few people would know the difference.
Oct 06, 2007 08:21 AM
Lauren Corna
Archway Realty, LLC - Southlake, TX

Angie-  Great post !!  There is definitely a difference between modular and manufactured homes.... It's also important to know that not all lenders will lend to Buyers buying manufactured homes....

My neighbor builds modular homes... If you know anyone that is in the market, give me a call and I'll hook you up !!

Oct 06, 2007 08:22 AM
Angie Ridley
Complete Realty, LLC - Flint, MI
Broker, ABR, CRS, PMN, WCR, At Home With Diversity

Thank you for the for the post Craig and Lauren.  In our area modulars and manufactured are scatterred through out the suburan areas.

I don't beleive the public is educated well enough to make an informed decision.  Personally, my next and last home will be a modular.  They are built in a climate control factory, they appreciate and I like the storage.  Modulars seem to have more storage then stick builts. 

Oct 07, 2007 03:01 AM
Lauren Corna
Archway Realty, LLC - Southlake, TX

Angie-  Great Post !!  It's also important that the Buyers find a lender that will even touch a manufactured home loan.  They are tricky for most Loan Officers because of all the red tape and all the hoops you have to jump thru to please the Underwriters....

Oct 07, 2007 06:14 AM
Angie Ridley
Complete Realty, LLC - Flint, MI
Broker, ABR, CRS, PMN, WCR, At Home With Diversity


My mothers family name is Colley.  My aunt moved to Texas for a while and visited Colleyville just because.

Thanks for the comment.  Gotta love the underwriters.  Can you imagine the bigger mess we would be in without them.  I hate conditions, but after seeing all the foreclosures ect...


Oct 07, 2007 12:21 PM