Pros
- More affordable
- Mobile/movable
- Faster construction
Cons
- Land needed: to purchase or to lease?
- Can decrease in cost as they age
If you’re looking for a home in a lower price bracket, you’re likely to come across several manufactured, or mobile, homes. Today, we’ll look at the pros and cons of manufactured homes, and whether or not they may be the correct choice for you!
Manufactured homes are buildings that are partially pre-assembled and get fully assembled when they reach their destination. They don’t have poured, in-ground foundations like normal buildings, instead sitting atop cinder blocks or another non-permanent foundation type. This allows for the building to be moved, hence the unofficial name of mobile home. They come in either single, double or even triple-wide variants, depending on the width you want for your home.
READ: New vs Resale Homes: Which Should You Pick?
There are several benefits of manufactured homes. The biggest, of course, is the cost. Manufactured homes are one of the most affordable living options, usually coming in under $120,000 brand new for the nicest options, and far less on the resale market. They’re mobile, so if you need to move, you can bring your home with you. And you get to choose your location. Unlike normal homes, you won’t ever need to be stuck in an area or a neighborhood you don’t want to be in. Manufactured homes are also faster to build than traditional homes – on average, you’ll be able to live in your new manufactured home in under 90 days.
Manufactured homes do come with significant downsides, however. The largest issue is that you’ll need land to put your manufactured home on. You can either purchase land, which gives you the freedom to choose where you want to live but comes at a cost, or you can lease land. Leased land is typically found in manufactured home parks or communities and cost a regular fee. The upside to these communities is that they’ll already have power, water and sewer ready and they can have additional amenities, like pools or parks. Some communities have covenants, conditions and restrictions, limiting what exactly you can do with your space. While normal homes typically increase in cost with the market, manufactured homes can decrease as they age, much like RVs or vehicles. However, once a manufactured home is added to a piece of land on a permanent foundation, they appreciate in price like any other ordinary home. Manufactured homes are often a temporary living situation for people, making them a stepping stone as buyers move on to larger homes. Depending on age, some lenders don’t even offer loans for manufactured homes for this reason, so you’ll have to check with your lender if you’re looking for manufactured homes. Here on our team, we work with many lenders who give loans for homes in parks or on rented land, so if you’re interested in financing a manufactured home, contact us today!
So, is a manufactured home the right option for you? They can be fantastic choices if you’re looking for something lower cost to get into quickly, a home to build equity, or something to live in while you wait to buy a larger home. A $100,000 manufactured home will always be far, far nicer than a $100,000 normal home. Manufactured homes can be long-term options too, of course, but you’ll have to consider the cost of land or leasing when looking at living in one permanently.
Are you interested in purchasing a manufactured home? Our Buyer’s Agents would be more than happy to assist you in the process, and we can connect you to several lenders who will help make it happen! We have several parks with available homes or lots, including parks just for senior citizens. Whichever you choose, we can assist you in navigating and negotiating homes in parks or on land. If you are considering a manufactured home, contact us and let us know how we can help!
