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What makes a mobile home expensive?
Due to strict Government laws all mobile homes are built to the same standard. So structurally, expensive and cheap homes are the same, they have to be.
So what's different? Some manufactures build their homes with better stuff than the government regulations require. Not much better, but enough to make a difference so they can sell you on the idea that their home is better than the rest.
What makes a home more expensive
1. OSB exterior, instead of cheap press board.
2. Some use TYVEK wrap instead of a cheap paper wrap or plastic wrap that won't breathe.
3. The ability to customize a floor plan. Customization can really be costly and at the same time really affordable. If you need to customize your floorplan most manufactures will do it for a fairly small upfront cost (100 - 200 dollars). This process is much more expensive than that, so they spread the cost out in each home which drives up the cost. If you don't need to customize you are still paying for everyone else's customization, which makes it very costly for the person who doesn't need this service.
4. The more options a home has, the more overhead a manufacturer has and it drives up the price of the home. So, lots of cool options like drywall, wood clad windows, wood trim, berber carpets, and other fancy stuff make each home more expensive even if you don't purchase those options.
5. Quality fixtures and accessories makes a home more expensive. Solid bathtubs, metal faucets, good door handles, good door hinges, good doors, good windows, good carpets and other quality standard options really drive up the price of a home.
6. Shipping costs. This is huge! Out of state shipping charges can add up to thousands of dollars. I used to pay almost 4,000.00 dollars to order some of my homes from a manufacturer two states away from my shop. Buying from local manufacturer can save you a ton of money! (note: you still have to shop wisely.)
7. Overall attention to detail. This is something I don't know how to teach you. I saw the difference after 18 months between different manufactures. I would recommend going to a few different plants and touring them yourself if you can. Look at the little things like: how corners fit, windows open, doors close, is there glue on walls, are the cabinets not hung straight, is the siding on crooked, do the marriage walls not line up.
8. Great Warranties.
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What makes a mobile home cheap?
Due to strict Government laws all mobile homes are built to the same standard. So structurally, expensive and cheap homes are the same, they have to be.
So what's different? Some manufactures build their homes exactly to the government regulations required. This means that the home is really at a bare minimum and typically not up to most peoples standards. But these homes are really, really inexpensive.
If you buy one of these inexpensive homes and you know what to expect then you won't be so upset in the long run.
What makes a mobile home cheap...
1. Very inexpensive fixtures and accessories. These products will probably break or wear out on you within a couple of years. Thin carpets, plastic faucets, thin plastic sinks and bathtubs, metal windows, cheap outer doors, ugly thin wallboards, wrapped trim, 2X2 wall studs, bare minimum structural requirements, cheap siding, cheap cupboards. You get it right?
2. Not being able to customize anything doesn't make a home cheap but it does make the home less expensive.
3. Just a few options. This makes a home less expensive.
4. Poor attention to detail. Slapped and glue together. (Just kidding)
5. Bad warranties.
6. Locally made doesn't make a home cheap, but it may make it less expensive.
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How do I find the best price on a mobile home?
This is a simplied way to shop.
1. Find out how much you can afford or want to afford.
2. The home is only one part of all the costs of this project, so go out and do your own homework on all the other costs that will occur. Here is a short list to get you started.
a. blocks to set up the home.
b. pads that go under the blocks.
c. skirting
d. electric hook up
e. water hook up
f. stairs
e. phone hook up
g. set up costs
h. lot rent
i. insulation
j. tie downs if required
3. Once you have the construction costs nailed down you can start looking for homes. I'm serious don't go look for homes until you know what going on. I know you won't follow this advice. If you do this though, you'll know more than most of the sales people you'll meet. I know, Scary..
4. Get a general idea of how many square feet your budget will allow for. If you give the salesperson a 50,000 dollar budget, they'll show you what they have in your price range.
5. Once you have the square feet down, find a floor plan that you like. I would get every floorplan in your square footage that is sold in your state or area.(many retailers will build from hundreds of miles away.)
6. Once you have a floorplan down, lock it down to a manufacturer. They all have very simular plans. You don't want to shop different manufacturers because you won't know if you're getting the best price or not. If only one retailer sells the plan you like then you risk not getting the best price for the home you want. You might get a cheaper price from one retailer on a different floor plan, but since it's not the same home there isn't any way to tell if it's a good deal or not. In the end it's obviously your choice.
7. Once you have one floor plan from one manufacturer, go find every retailer that sells that home in your state. Most manufactures web sites will give you a nice list of all the retailers that sell their homes.
8. Pick one retailer and spend a ton of time with them picking options and nailing down costs. Always write down what they tell you or have your own list ready and fill in the information so you can give the list to other dealers.
9. Never ever ever never put down any money until you are done shopping. Not for anything. Don't do it. It will take you for-----------ev-------------er to get that money back to put down on the other dealer. I know it's the law, 24 hours and they have to give it back. Don't do it. It won't happen. If it does, you got lucky. Don't do it. Get it?
10. If you feel that everything you want in your home is all laid out and every cost is covered it's time to go out and shop for your bottom dollar. I'm talking about the price of the home, options, and retailer costs like delivery, set up, and whatever else they'll try and charge you for.
11. Take a copy of your list of costs and with a huge smile on your face, hand it to the salesman and ask him if he can beat it. Of course, he won't like the situation. He doesn't want to do the work of coming up with a better price and have you walk away to the next dealer (which you'll do) so he'll try and pressure you into some sort of deal. Just get the new price, in writing, so you can take it to the next guy. His list of costs should match your list of costs perfectly. Don't let him leave anything out that he may charge you for later.
12. By the time you're done you should have the best price possible.
Exception to the rule...
If you are buying a used mobile home it is almost impossible to shop a model. You will have to shop a size.
Tip... If there is a time when buying stops in your area, like winter, this would be the best time to buy. Sales people get hungry at this time and are willing to part with their profit faster.
Warning...Getting the best deal, like paying almost no profit, is a good and bad thing. Be prepared when your sales person doesn't want to spend a bunch of time and effort on your project. You took away all their money and motivation because now they are working for next to nothing. You really need to stay on top of things to make sure everything gets done.
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What do I need to stay away from with mobile homes?
Nothing that I can think of. Every manufacturer has it's good and bad aspects. Oh, stay away from spending too much money.
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Can I put a mobile home on a basement?
Only if you create a special beam system to hold the house up.
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Should I buy a mobile home lot model?
Only if it fits in with my shopping model.
Can you save money?
You might. Sometimes dealers are willing to lose money in order to get rid of the lot model so they don't have to make payments on it to the bank.
What could happen?
You could pay full price for a used home. Then you pay for extra stuff liking paying for the first setup, then you get to pay for it to be torn down, then you get to pay for it to be moved, and finally pay to set it up again on your lot. Not a pretty idea. It happens.
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Construction tips for mobile homes...
1.Putting in your own skirting can save you a ton of money.
2. Buy your own blocks and pads and have them delivered.
3. Find you own stairs.
4. Try and find retired electricians that will work inexpensively.
5. See if the park manager will hook your water up for free.
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Service tips for mobile homes...
This is one of the most frustrating areas of any new home purchase. There isn't much you can do to ensure good service. For some customers service is great for others it can be a nightmare.
Service tips...
1. Call the state and see what kind of complaints are against a retailer. Almost all retailers have complaints so don't panic if the retailer you have chosen has some. What you are looking for are numerous (too many) unresolved service issues. You can also call past customers, but they will probably only give you customers that are happy.
2. When your home has just been finished and you feel the retailer still needs to go back and fix something, many times the retailer feels differently than you. Are you surprised? One way to solve this problem is to have your friendly loan officer or lawyer help you draw up your sales contract stating that you won't pay the retailer the last 10% until you are satisfied they have finished the job. They hate it, it's great. The reason your loan office will help you is that they don't want to have a loan on an unfinished home. Try and get everything done right away so you don't have to fight them to come back.
3. Be aware of non existant service crews. At times the store I worked out of didn't even have a service crew. Our toter driver would go out and try and fix whatever he could when he had the time. Not too cool. So, find out how many people are in their service department, obviously the more people the better. If the store has a bunch of independant contractors doing their work that's good too.
4. Having the manufacturer come out to your home is ok. The manufacturer can be a bit slower than the retailer.
5.Don't give up when they don't come out. The person that calls the most and screams the loudest gets the quickest service. Being rude isn't good either... if you tick them off too much kiss them goodbye.
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What is PAC on a mobile home?
Most of you probably know what PAC is. It's the profit that almost never comes out of the deal. Salespeople get paid on whatever money they can get above and beyond PAC. PAC pays for the overhead and typically doesn't make the retailer too much money.
PAC...
1. A sales person can't drop the price below PAC. Typically, the manager can't either, PAC is set by the owner of the company.
2. Large retailers typically have higher PAC's than smaller retailers because their overhead is larger.
3. Narrowing your shopping down to one home helps you find who has the lowest PAC and least amount of profit for them.
4. I've heard of PAC's ranging from $0.00 to $2,000.00
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Are they really throwing it in for free?
No. Unless they've offered everything they are willing to offer and you are down to your last retailers and going back and forth between offers.
By the way, it's not free unless you didn't pay for it. The only way your not paying for it is if there isn't any profit in the deal, which I doubt will ever happen. So don't think of it as free just one more thing you're paying for at the same price.
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Are mobile home sales really saving me money?
No. Run away from Sales.
Unless you are at the end of your search and it fits in my shopping model.
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Do I need to put a mobile home on a foundation?
Only if you want your floors to be flat and your home stable and even. Most laws require a foundation.
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Is buying a used mobile home a good idea?
It can be. Mobile homes that aren't fixed on a foundation with property lose their value pretty quickly. In other words if it isn't Real Estate it depreciates.
That means it's possible to get used mobiles from private parties at a good price. Used mobiles from retailers are too expensive.
It might be harder to get a loan if you don't use a retailer but not impossible. Get the home inspected by someone who knows mobile homes.
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Are there options I should buy when ordering a new mobile home?
Obviously extra options cost you more money so pick and choose as you can afford.
Buy as you can...
1. Upgrade your carpets.
2. Standard kitchen sinks are typically way too shallow, upgrade if you can.
3. Upgrade the back door if you don't want frost on the inside of it.
4. Upgrade to vinyl windows if they aren't standard.
5. Put OSB on the exterior walls.
6. Drywall will help on the resale value of your home.
7. Upgrade your water heater if you have a huge tub.
8. Upgrade to 220 electric service.
9. Put in an exterior water faucet and electrical outlet.
10. Put in service entries for plumbing.
This is not an exaustive list but a good start.
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Do mobile homes have a good resale value?
Mobile homes have a better resale value if they are on a fixed foundation on property.
Mobile homes in mobile home parks can lose their value quickly. There are instances where mobile home parks have a very good resale due to lack of space and high demand. In my experience these parks are few and far between.
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Are some mobile home brands better than others?
Read why some mobile homes are more expensive.
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What is a good deal on a mobile home?
A good deal is more than price. Here is my idea of a perfect situation.
Good deal...
1. Very knowledgable salesperson that knows the new construction process like the back of his/her hand.
2. Buy the home 2,000.00 - 3,000.00 above invoice.
3. Get the central air and whirlpool thrown in the deal after the final price is negotiated.
4. Hopefully the salesperson gets paid off that 2-3 thousand so they'll actually work for you.
5. Home ordered and you moved in after a couple of months, completely serviced and happy.
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Do mobile homes fall apart?
For some reason people don't take care of mobile homes as well as other types of dwellings. Because of that many homes that need maintenance never get it.
If you buy a cheap home (see above) then the inexpensive things in the home will wear out and you will have to replace them. All homes require maintenance so if you're prepared you won't be so upset.
Some things I have seen...
1. Siding fading at different rates.
2. Floor joists bowed up or broken.
3. Cupboards falling off the walls.
4. home needs re-leveling.
5. Skylights leaking.
6. Shingles falling off.
7. Carpets wear out in one year.
8. Bowed wall studs.
9. Windows don't close correctly.
10. Trim falls off.
11. Doors don't close correctly.
12. Leaky roof
13. Cold floors
14. Frozen plumbing
Some of these things also happen to site built homes so don't panic.
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Financing tips for mobile homes...
If at all possible don't take the financing through the Retailer you purchase the home. By financing your home through a local bank you will have more control when it comes time to get the last problems with your home finished.
Lenders that work directly with the Retailer may not give you the rights you deserve.
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How much are they making off me when I buy a mobile home?
Lucky for you there are profit limits for how much a lender will give a loan for. If I remember correctly it is around 36% above invoice, it might be less. If you're not careful, you'll pay as much as the lender will give plus your down payment. Those kinds of rip offs are common. A typical profit is around 3,000 - 5,000 dollars. A good deal for you is around 1 - 2,000 dollars. Less than that is awesome.
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What is the invoice of a mobile home?
The invoices for mobile homes change so quickly even the salespeople can't keep up with them. Invoices can be as low as 0.00 for a used mobile home to 30,000 dollars for an expensive one.
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Should I buy a mobile home from a big or a small retailer?
There a benfits of both. A big retailer can buy the homes for less, so if you shop right, you might be able to get the home for a better price than the smaller retailer. Big retailers typically don't or can't take care of their customers like the small retailers can. Smaller retailer can have smaller PAC's and save you money that way. Sometimes service can be really good at some smaller retailers, where customers are really valued.
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Mobile home Tricks and Scams...
Many salespeople try a bit too hard to make the sale. They will do anything to get you to buy. These are smooth people and you'll never know what hit you. Everything will seem great and you'll even be happy about your decisions. You may never even know you were taken in by their lies. Some people don't care and if that's you, most of my information should get you half way. But, these people can make you pay more than you should, sometimes it's just a few hundred dollars, other times it a few thousand and for the unfortunate ones it can add up to 15,000 - 20,000 dollars. more....
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