Buying a Manufactured Home

We've talked about this earlier, but the prefabricated home market is large.  To put things in perspective, new home sales reached just over $5 billion in 2008.  With that many new manufactured homes being sold each year, it's quickly becoming an important and significant market for both new and used homes.  That being said, we'd like to outline some tips to follow when buying a manufactured home.

Manufactured and Prefabricated Homes

Our tips are going to cover the basics of buying a prefabricated or manufactured home.  We're going beyond the mobile homes of old, and talking about how to identify a higher quality home, as well as some of the home buying considerations that might be unique to the manufactured home market.

Our tips are also going to cover a complete range of home-buying options.  That is to say, they will address both the used and new home market.  If you're thinking about buying a new or used home, then you can use this guide as a mental checklist whenever evaluating a home.

Federal Standards and Manufacturer Warranties

Buying a home is one of the biggest investments you'll ever make, so you want to minimize the possibility of making a mistake.  Your first line of defense against a "defective" home is a good understanding of the federal building standards that apply, and the manufacturer's warranty.

Federal Standards for Manufactured Homes

The quick rise of the mobile home market resulted in a competitive market and cost cutting measures that, at times, compromised the safety and integrity of the prefabricated homes.  Recognizing the need for quality standards in this market, the US department of Housing and Urban Development, or HUD, developed a set of standards that applied to the construction of manufactured homes.

Generally, these initial codes addressed workplace rules such as construction standards and safety.  In 1994, the HUD code was updated to include higher standards for thermal insulation and wind resistance.  Today's regulations also include design and construction, strength and durability, transportability, fire resistance, as well as energy efficiency.

Manufacturer's Warranties

Warranties offered by top manufacturers will vary.  Generally, you can expect them to cover defects in workmanship, plumbing, electrical, and heating systems they've installed as well as any appliance included at the time of purchase.  You can also expect that manufacturers will not pay for problems that stem from accidents, lack of maintenance, or unauthorized repairs.

When comparing warranties from several manufacturers, some of the items you need to consider include:

• Length of warranty
• Suppliers of warranties (manufacturer, transporter, installer, appliances)
• Items covered
• Process for gaining a warranty repair

When dealing with a seller, make sure you get all the warranty information in writing - especially if there is a promise that does not appear in written materials.  Many times used homes are sold "as is."  In some states you might still be covered by an "implied warranty."  This means the seller sold you a home and the expectation, or implied warranty, is that the home was suitable to live in.

If your dealing with a seller that is selling a home "as is," then you should check with your local consumer protection office to see if a limited "implied" warranty applies in your state.

Site Selection for Manufactured Homes

If you're buying a new home, then you need to select a site before the home is purchased or manufactured.  If you're buying a used home, it is very likely that the home already conforms to existing zoning requirements.

For new homes, you unusually have a choice of leasing property from a manufactured home developer or purchasing land yourself.  If you're dealing with a manufactured home developer, then they've probably already taken care of all of the site requirements.  If you're thinking about buying your own land, then you have a lot more work to do.

Local Zoning Boards

In many urban and suburban areas, there are zoning requirements established by local zoning boards.  These requirements apply to additions to existing structures and new homes.  It's possible a township has restrictions on prefabricated homes that apply to its exterior appearance and / or size.  You need to contact a local zoning board to see if there are any restrictions that apply to new homes in general, and to manufactured homes specifically.

You'll also need to work with local officials and utilities to determine their process for supplying those essential services to your home.  This would include electrical connections, natural gas lines (depending on appliance and heating systems), drinking water, sewerage connections, telephone, and cable television.

Site Preparation and Transportation

Prefabricated homes present buyers with special considerations since there is extensive site preparation work, and possible transportation of the home itself.  If you're working with a manufactured home retailer, then they should be able to supply you with these services or help you to find a local contractor that specializes in this area.

Before purchasing any land, make sure that the installer and transporter have approved the site for installation.  Keep in mind that you are moving a very large object, and with that will come challenges - the most important of which is accessibility.  That means the transporter must agree they can get the home to the property, and the installer must agree they can properly prepare the site for installation.

Site Preparation

Again, your manufactured home retailer should have a checklist you can work with to make sure you've found a piece of land that everyone agrees is an appropriate site for a new home.  Also keep in mind that the logical sequence of events should be finding a suitable piece of land before committing to purchasing a home.

The last thing you want is a home that is ready to be delivered, and you haven't found a place to put it.  That means you are going to work with your home retailer, while at the same time looking for suitable property.

Your installer will need to prepare the property to receive the home.  This includes building a foundation to support the home and anchor it to the ground.  Depending on the home selected, site's characteristics, and your budget, a foundation might be a "slab" or include a basement.  The installer should also ensure that rainwater drains away from the home.

Make sure you understand all the roles and responsibilities of site preparation.  After committing to spend a large amount of money on a new home, you don't want to deal with the expense of cutting down trees that you thought the installer would remove.

Transporting a Manufactured Home

Transporting a manufactured home often occurs in two stages.  First, the home is transported from the manufacturer's factory to your retailer.  Once there, it will be checked for damage that may have occurred during this first move.

Next the home is transported to the site you've prepared so that it can be installed.  Damage to the home that occurs at this stage is the responsibility of the transporter.  Make sure you have a written warranty from the transporter that covers any damage to the home that occurs during this phase of the move.

Installing a Manufactured Home

All prefabricated home manufacturers supply written instructions on installing the home.  Leveling the home, and anchoring it to the foundation, is performed by the installation crew.  All new homes are subject to settling and shifting.  It is important to make sure the home stays level, especially during the first year after installation.

Check with your installer or retailer if you suspect a shift in foundation that is resulting in an unleveled home.  Walls will eventually crack, and damage to the home will occur if leveling becomes a problem.

Finally, you need to understand the installation company's role in connecting all utilities - especially electricity, water, sewage and natural gas / propane.  And that brings us to our last tip.

Hidden Costs

It's important that you work with your retailer to understand your total financial obligation.  That means you need to understand what is included in the price of your manufactured home, as well as what's not included.  For example, does the retailer offer a bundled "turn-key" price that includes transportation, inspections and installation?  Or are you responsible for negotiating with contractors yourself?

Don't forget to ask your retailer for a written estimate of all costs associated with transportation and installation of the home.

Buying a home is a big expense.  A reputable retailer should have no problem providing you, in writing, all the "promises" that they've made to you during negotiations.

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