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Updated over 5 years ago on . Most recent reply

User Stats

9
Posts
1
Votes
Rob Marzolf
  • Realtor
  • Fayetteville, AR
1
Votes |
9
Posts

How does build quality affect the price of commercial real estate

Rob Marzolf
  • Realtor
  • Fayetteville, AR
Posted

I have recently discovered a company that prefabricates living Pods.  These pods are created in factory then shipped to the construction site. The pods are considered one "hotel" room.  They are placed together and connected to each other and then finished out via normal means of construction i.e. Sheet rock, sparkle, paint, ect. 

The problem I see is that modular or mobile homes have little to no value.  I am lead to believe that is because they can be moved.  Well when it comes to a modular home the banks still don't assign much value to these properties due to its lack of foundation and build quality. Would these concerns transfer over and affect the value of a commercial multi fam property? 

Given the type of construction, basically a modular hotel at this point, does this affect how the building is valued, or borrowed against. 

Any help would be great. I will find more specific answers if anyone would be willing to help me figure this out.  

Thanks 

Lamont 

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