Tidewater Custom Modular Homes Blog

Often there are questions regarding the value, appraisal or retail value of a modular home. Modular homes appreciate in the same way as a traditionally built home, and sometimes there value is higher than a traditional home of comparable size and layout.

Modular Homes are built to more consistent, high standards than traditionally built homes, they are also built more sturdily, using screws and glue. Because of this, often times the wear and tear on a modular home is less despite being in the same geographic location. However, for simplicity, and because home value depends on how the home is maintained overtime, we say that modular homes retain value consistent with stick built homes.

Banks and mortgage companies consider modular homes to be the same as traditional homes. Most modular home factories are well known to lenders, and the construction time is faster therefore, lenders often like to initiate construction loans. But for the homeowner, the interest generated on the loan is less too because of the shorter construction period.

Contact Tidewater Custom Modular Homes if you are interested in learning more about the value or appreciation of modular homes to help you in your decision making process.

The question often arises: Do modular homes appraise for the same value as a traditionally built home? Simply put, yes.

In order to buy a home, it must be appraised so you can begin the process of getting a mortgage or loan. An appraisal is the estimated amount a home buyer can expect to pay for their new home. When buying any piece of property, including modular homes, you need a licensed professional appraiser. The question then becomes, if the home is not yet built, how is it actually appraised?

The appraiser will inspect the modular home plans to have an idea of how much your new home should cost. Generally, they use information on labor rates, building costs, and depreciation and appreciation locally where the property is being built. The appraiser will use sales comparisons, prices and values of compatible homes sold in the area, to determine the current value of the modular home.

Once a thorough analysis of the property has been completed, a report is created which is used to initiate the mortgage or loan process. Included in the report would be the property specifications, the replacement cost analysis and the above mentioned comparative sales analysis.

The replacement cost analysis is the total amount spent on the construction and materials of the modular home, and the lot value.

All this will determine the current total value of the property. The modular home appraisal will then be finalized so that the loan transaction can take place. The calculated total value of the modular home will help you determine future expenses such as utilities and real estate taxes.