600sqft stick-built house vs new 1700sqft manufactured house?

Question

If you had your own land, and you can either: 1. Build a 600 square foot stick built house or 2. Put a brand new 1700 sqft manufactured home on permanent foundation, what would you rather do? Stick built houses appreciate better, right? Is it better to go with a 600 sqft stick built or 1700 sqft manufactured (brand new)? Assuming that we're looking at just the value, and we don't care about how big the house is.

Tony SanFilippo · Answer

I would say no brainer, put the larger manufactured, as long as it is NOT a HUD.  IRC homes are appreciating assets in my market (verify yours), but See below:

There is a big difference with mobile home (HUD) homes and Manufactured homes that meet the International Residential Code (IRC)
 building standard.  Manufactured IRC mod home sand are just like a 
stick built home.  They also don't have the same financing issues as HUD
 Mobile homes and can use conventional financing.  Many people say that 
the manufactured home are build better because they are build indoors in
 a controlled environment.  They are not getting rained on or snowed on 
during the building process and you can drug test your employees at the 
factory, vs. a job site contractor.  Below is a picture of a 
manufactured home, it was set on a foundation in one day, back in 2004. 
 Sold in 2017 for $490K $250/sq.ft.

Here
 is a stick build "brick" home within just a couple blocks in the same 
neighborhood with a 3 car gar. that sold for $460K $247 cost per sq. ft.
 (5 months after the above home sold).   The brick house about 15% less 
Square ft., but the basement was finished, the Manufactured home had an 
unfinished basement.

So I would say the manufactured home on owned land has kept it's value comparable with a stick build Brick house.

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Ellie Narie · Answer

I'm just worried that, say, 10 years down the road I will owe more on the manufactured home than it would be worth. Do new manufactured homes hold up their value if they are tied to land?

Ellie Narie · Answer

Well, I'd want to live in it for a bit, then rent it out, but I feel like if I get the manufactured home, I wouldn't be able to sell it if I needed to.

Account Closed · Answer

These days, yes they do. Pre 1978 no they don't. A 2018 unit will be around for a long time and will be in high demand. Properly treated of course, just like any other home. With 1700 sq ft you are obviously talking a doublewide.

Account Closed · Answer

600 sq ft houses are hard to get financing for and people rarely want something that small. So, it might be difficult to sell unless the buyer has cash.

A brand new manufactured is easier to sell. Talk to a couple of mortgage brokers in town (banks are harder to work with) look up "Mortgage broker" or listen to the radio for their ads, usually on the weekends. Or call a real estate office and ask who they recommend for a mortgage broker. Ask the mortgage broker what the requirements are for financing a manufactured and just make sure you adhere to their underwriting rules so that you will be able to sell in the future.

Account Closed · Answer

Depends on the goal of course. To live in? To have as a rental? or To sell?