Modular Homes VA Blog
Traditional Construction Labor Shortage Causes Decline in Quality and Increase In Price
Part of the fall-out from the slowdown in the home construction industry is the fact that a large volume of home building craftsman and laborers have left the industry. This labor shortage serves only to significantly increase the already strong comparative value of custom modular homes over traditional construction.
An executive from TC Modular Home's supplier, HandCrafted Homes (Henderson, N.C) says the differential in price between modular homes and stick-built “has sure tightened” as subcontractor labor has gotten scarcer and more expensive. Realize also that fewer traditional home building laborers means the volume of quality laborers has significantly declined as well. Those who purchase traditional stick built homes really are buying a box of chocolates....they just don't know what they are going to get.
But you know what you are getting from your TC Modular Home selection. Our builder enjoys the benefit of a skilled and stable labor force manufacturing high quality homes to the strictest of industry and company standards. We're so proud of our products (such as our Cape Cod Concord and the Chapel Hill Ranch) that we actively encourage prospective buyers to tour the Handcrafted Homes factory. You'll know exactly what you are going to get and when you are going to get it. Our average delivery time averages an amazingly short 60-90 days. You won't get that efficiency out of any stick builder.
Modular Homes are Totally Different from Mobile Homes
If you are considering building a home, you may be considering modular construction. But modular homes are not to be confused with manufactured or mobile homes. These are two very different animals. Because the terms and the construction process are so often confused, we have tried to explain the differences below.
Modular Homes
Modular homes are sectional prefabricated houses that consist of several sections called modules. The modules are six sided boxes that are built in a factory, and then delivered to the property. With a crane, the modules are set onto the foundation and joined together to make a modular home. With modular construction a wide variety of configurations, floor plans and styles are available in the building layout.
All modular homes are constructed according to local, state and federal building codes. Modular construction can and often do exceed these standards with upgrades for energy efficiency and overall performance.
Often, modular construction is less expensive because modular homes manufacturers purchase building materials in volume, and the homes are built in a controlled environment, utilizing systems engineered construction methods. There are no costly weather delays in the construction process. The materials used in modular homes are the same as site constructed homes. All modular homes are designed to sit on a foundation or basement.
Modular homes are also designed to be stronger than traditional homes. Nails are replaced with screws, and glue is added to all joints.
Manufactured Homes and Mobile Homes
Manufactured housing is a type of prefabricated house that is mostly assembled at factories and then transported to the sites of use. Mobile homes are not designed to sit on a foundation.
The construction of manufactured or mobile homes is regulated by the HUD Code. Most manufacturers view the HUD Code as minimum performance standards.
The HUD Code covers the construction of the home, and the heating, air conditioning, ventilation, plumbing, thermal and electrical systems.
These homes are less labor intensive to make and also require a shorter production time as compared to a standard site built single family home.
Modular homes should never be confused with a mobile home. However, it is very easy for a lay person to confuse a modular home with a traditional site built home because they are just as beautiful and can be custom designed.
For more information on modular construction, contact Tidewater Custom Modular Homes.
Excerpts – The Mortgage Network
What You Need to Know About Modular Homes
The base price of the modular home is less expensive than having a crew labor on-site for months which enables new homeowners to customize them very nicely.
Modular homes, or prefabricated homes, offer a variety of benefits for home buyers who want to build on a plot of land. Here are some things you should know:
1. Prefabs Are Faster to Build
Depending on the complexity of the home, it can take around three months to build and get it move-in ready. From start to finish, it takes about nine months to a year to construct a stick-built house.
Home modules are constructed and inspected in a factory, where weather won't delay the process. The modules are then transported to the final building site. It takes about three days to fully assemble those components at the site.
Additional site work, including electrical and plumbing hook-ups, driveway paving, final grading of the land and landscaping, also need to be done as in site built homes.
2. Preset home plans, a-la-carte options, or customized homes
For manufacturers that offer preset home plans, the base price of a modular home typically includes construction, transportation of the modules to the final build site, and setting the home on its foundation. For an additional cost, buyers can tweak a builder's preset plan, hardwood rather than carpet, for example.
Site work, like septic and utility hook up is an additional fee, just like in stick built homes.
3. Modular Homes Are Surprisingly Durable
In assessing damage to residential neighborhoods after a Category 5 Hurricane, the Federal Emergency Management Agency reported "relatively minimal structural damage in modular housing developments. The module-to-module combination of the units appears to have provided an inherently rigid system that performed much better than conventional residential framing." Translation: Prefab homes can hold up better in extreme weather conditions than traditional stick-built structures.
4. You Can Remodel Your Modular Home
After construction, there's nothing that would preclude the reconfiguration or remodeling of a modular home simply because it's a modular build. Just like a stick-built home, you need to account for the structural support and layout. Prefab homeowners looking to remodel should let their contractor know early on that they have a modular home because there may be some slight differences in the structure of the beams that support the home.
For more information on building modular homes, contact Tidewater Custom Modular Homes.
Kiplingers
Reinvest Rental Property Capital Gains Tax Free Into a New Modular Rental Home
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Now, we are not tax attorneys (nor do we play one on TV), but we’ve come across a few people who have sold rental property elsewhere in the country and are now looking to us here at Tidewater Custom Modular Homes to reinvest the realized gains here in rental property here in Hampton Roads. If this is your intent, do you know that you can avoid paying federal capital gains tax on some or ALL of that profit?
The process by which to do this is called a “Section 1031 Like Kind Exchange”. Again, you must talk to a federal tax expert for the details, but simply put, you work the process through an intermediary who handles all the sale of your current and purchase of your future rental property. Because you never actually take receipt of the profit on the sale of your old property (because this profit is directly transferred by the intermediary during the purchase of your new property), federal tax law concludes you have not actually received a cash gain, YET that is. Sometime in the future when you (or your heirs) sell this new rental property, then the federal government will come calling you to pay tax on the gains.
So rather than write a check to Uncle Sam this year, you can reinvest your hard earned money into a new modular home perfectly suited for rent. Small low-cost ranch style modular homes such as "The Austin" or a cottage style modular home such as “The Ashton” can immediately put you into positive cash flow on your new custom modular rental home.
For more information, contact us today.
Modular Construction is Taking Off
Modular homes are prefabricated, residential homes that are becoming increasingly popular because of their elegant and affordable features. Sturdy modular construction and affordability of these homes along with the design possibilities and the ability for customized floor plans are just some of the factors that are letting modular construction take off.
The process of building a modular home begins with the design. The home is then built in modular sections at a climate-controlled factory, to the specifications laid-down by local and state building codes.
Cranes and trucks, transport the modules to the building site for final assembly, which includes setting the modules onto the foundation, installation of plumbing and electric, sealing up the home and adding the siding and decks.
Modular homes use traditional construction materials, but are built faster and more efficiently.
Other factors that contribute to the rising popularity of the modular homes are:
1. Modular homes take much less time to construct
2. Provides a profitable option to an home owner
3. Building and maintenance costs around 30% less, (depending on design options)
4. Manufactured in a climate-controlled environment, the house is not vulnerable to weather and other external factors that could affect the project completion.
5. A greener solution to home construction because of the low waste
6. More energy efficient than stick built homes
For more information on modular construction, contact Tidewater Custom Modular Homes.
Modular Construction for Vacation Homes
Modular home construction is a concept that is growing rapidly. Why? Because it is more efficient, sturdy with a faster construction time. Modular homes can be constructed in just 4-8 weeks once the design process is completed. This is why modular construction for vacation homes is the perfect option.
There are those who subscribe to the theory that you should buy your vacation home first and enjoy life. So if you are considering buying a vacation home, consider building one instead. With modular floor plans that are standard to custom designed, we can build the modular vacation home you really want on the piece of land you love.
Oftentimes, it easier to buy the perfect piece of vacation land than it is to buy the perfect vacation home. Now, you can build the perfect second home and be enjoying it by the time summer rolls around. Tidewater Custom Modular Homes is accustomed to constructing modular vacation homes. We are in the heart of vacation land!
For more information on modular vacation homes, contact Tidewater custom Modular Homes.
Custom Designed Modular Homes are More Popular
Modular homes from Tidewater Custom Modular Homes are catering more and more to high-end homebuyers with customized, amenity-filled homes.
Homeowners in the Virginia who want to design and build their own homes are building modular homes because modular is just as luxurious and just as sturdy as traditionally built homes, or more so. However, modular homes are built faster and in climate controlled factories, facts that many who are building homes like.
When folks choose to build a home, they want a custom home. They are building because they want a new home, but they want a new home that fits their needs, their hobbies and their families. Most new home builders do not want a cookie cutter home. They may want a cape style home, but they may want one with an extra bedroom, a studio, or a wine cellar.
With modular construction, buyers can choose from standard home floor plans and make changes as they see fit, or they can work with an architect to have a home designed that can then be adapted for modular construction.
For more information on building a custom designed modular home with amenities, contact Tidewater Custom Modular Homes.
Modular Homes Are Changing Their Old Reputation
Modular homes are changing their reputation, as climate-controlled home-building factories increasingly cater to high-end home buyers and investors with customized, amenity-filled homes.
Real estate agents are coming across more and more modular homes being built and put on the market, a sign that homeowners and homebuilders are seeing these homes as luxurious and just as sturdy as traditional homes built on site.
When they show these high-end homes, people don't know they are modular. Interest in modular construction is growing because there is a strong market for new homes with more amenities. Modular homes are really about customization and giving the client what they want.
Modular home construction is getting away from the old-school way of sitting down with a catalog and picking a house. Now you can build anything you want.
Another advantage of modular construction is that while prospective buyers can dicker with traditional contractors or home sellers, pricing on modular homes is less flexible. Once a price is quoted, it's set.
Modular homes also save on labor costs because builders can buy products in bulk rather than for specific projects and can avoid extreme weather that can delay construction.
For more information on building a custom designed modular home, contact Tidewater Custom Modular Homes.
Excerpts - Post Gazette
Modular Homes on the Rise
Factory-built modular homes appear to be on the rise, as climate-controlled home-building factories are increasingly are catering to high-end home buyers and investors in the region with customized, amenity-filled homes.
Edward Mathis, a Re/Max agent for 12 years, has recently come across more than a few modular homes being built and put on the market, a sign that homeowners and homebuilders are seeing these homes as luxurious and just as sturdy as traditional homes built on site.
In the United States, about 3% of homes are modular homes.
Mathis said that when he shows high-end modular homes, people don't know they are modular. He said that he thinks interest will grow because there is a strong market for new homes with more amenities.
"It's really about customization and giving the client what they want," Mathis said.
Modular homes are getting away from the old-school way of sitting down with a catalog and picking a house. Whereas now you can pretty much build almost anything you want.
For more information on modular construction, contact Tidewater Custom Modular Homes.
NorthJersey.com
VA Guarantee for Modular Homes
The VA will guarantee loans for prefab homes and modular construction. However, it's all about risk. So, here is what is important to remember, and what is not.
A. The VA does not loan the money, it guarantees a portion of the loan that the lenders or banks make for the purchase of you modular home. That means that the VA takes the risk out of the loan by assuring that (typically) 25% of the loan will be paid off. It is truly the only government guaranty available on the market.
B. Lenders lend the money. These lenders are mortgage companies and banks who rely upon the VA Guaranty to make your loan. Lenders honor the rules of the financial markets, rules that are set by Fannie Mae and Freddie Mac.
A modular home is not the same as a manufactured home for VA purposes. Although the parts or sections of a modular home are built in the factory and then moved to the building site, the home must still be put up and completed at the building site. A veteran may obtain a loan to purchase a modular home under VA's regular home loan program.
Modular Homes
These can sometimes be called prefab homes. The pieces of the home are actually built in a factory. They are then shipped to your building site, assembled, wired, finished, equipped with sinks and furnaces, connected to utilities, inspected and handed over, all in the space of a few days. The result is a custom designed, newly built home with everything brand new. This approach to new home ownership can often be the best possible bang for your buck. And, banks lend on modular homes the same as a stick built house.
However, there is sometimes confusion in the Fannie Mae Freddie Mac world about manufactured homes and modular homes. You and your loan officer need to approach with care to make certain that everyone understands that the VA term for manufactured home is not the same as that often used in the residential mortgage world.
Bottom line
For modular homes, if otherwise qualified for the loan, the VA will guaranty the loan and the lenders will do the deal.
For more information on modular homes for veterans, contact Tidewater Custom Modular Homes.
Excerpts - Ezine