Modular homes are rising in popularity due to their easier construction and a number of other factors. However, many potential homeowners are wondering whether or not modular/manufactured homes are the same as site-built homes. Many customers are not sure about this construction method because they don’t know if their modular home would appraise in the same way. A thorough appraisal is crucial not only for buyers and sellers but also for lenders, insurers, and other stakeholders in the real estate market. Let’s break it down.

What is a Modular Home and What Makes the Construction Different

A modular home is constructed inside a factory setting and then transported to the site in modules for installation. They are assembled on a permanent foundation and these houses must adhere to the same building codes and standards as traditional site-built homes. Therefore, modular homes gain value in the same ways that traditional stick-built homes are and are appraised in the same manner that traditional homes are appraised.

The main difference between the homes is the construction process. Stick-built homes are built on-site, cost more, take longer to construct, and have other variables as well.  

Process for Appraising a Modular Home

The appraisal process for a modular home follows most of the same processes as a stick-built home. Appraisers assess the property’s value based on various factors, including the home’s condition, features, location, and comparable sales in the area. An appraiser will consider the following items from an inspection done the property:

Exterior: This can include the walls, roofing, foundation, garage, and attached surfaces like a deck. They assess the overall condition, looking for signs of wear and tear, damage, or needed repairs.

Interior: This often will include viewing floors, ceilings, cracks, window and door damage, water damage, and other interior material. Other things that can be assessed are cabinetry, countertops, fixtures, and appliances.

Property Size and Layout: They will record the lot size and layout of the property including the number of rooms and bathrooms. 

Market Analysis: An appraiser will also conduct a market analysis of the modular home to similar properties that have recently sold in the area.Renovation: An appraiser will also include any upgrades to the home you have done whether they be recent or when you first bought the home.

Challenges in Appraising Modular Homes

Many of the same challenges you face when doing a traditional home appraisal, and you will also run into your modular home. Here are some specific things to be on the lookout for in modular homes as well as some general things to know for appraisals:

Stigmas:

Potential home buyers may have certain stigmas and misconceptions when it comes to purchasing modular homes. However, that should not affect the appraisal and price of the home as they are built to the same standards as a stick-built home.

Market Perception:

The acceptance and popularity of modular homes can vary by region. In some markets, modular homes are widely accepted and valued similarly to site-built homes, while in others, they may be less familiar. You’ll need to check within your own state or country if there are any rules that affect modular homes in a specific market.

While these can cause some challenges when appraising a modular home, they can often be dealt with quickly and easily. If you are considering a modular home for you and your family, but are not sure where to turn to, don’t worry 360Connect can help.

Just fill out our 1–2-minute form and we’ll contact you to verify your information and needs. From there you can receive up to 5 quotes from suppliers. It’s that simple!