MANUFACTURED HOMES • January 2, 2015

Will a Manufactured Home Appreciate in Value?

Will a Manufactured Home Appreciate in Value? Image
Why would millions of people purchase a manufactured home if they didn't expect it to retain some value? These homes are very affordable, well constructed, and in high demand. Lets see how appreciation factors, regulations, and construction qualities could affect home appreciation values.
Home Appreciation
Market factors determine whether a home will appreciate in value regardless of the type of home. You must take into account the cost of the house, the housing market, local community, age, and inflation. In addition, the condition of the house and where the home is located affects home appreciation. A manufactured home often has higher appraisal value when it's placed on a fixed foundation and is located on private land.
Factory-made homes are regulated, and they must meet stringent codes for energy efficiency, fire resistance, durability, strength, construction, and home design. Taking these things into consideration, a home made in a factory offers at least the same quality or better than a site-built home.
In addition, homes constructed in a factory must be extremely well constructed in order to be taken to a site without damage. A factory-made home can offer all the same amenities of a site-built home, and it is constructed with the same building materials. In other words, they have the same qualities and should appraise similarly.
A study revealed that factory-built homes, which were permanently sited, exceeded condominiums in appreciation. It also showed that they rated very closely to site-built homes in appreciation.
There is a lot of controversy over whether a manufactured home will increase in value over time. These types of homes are subject to the same market conditions as homes built on site. Therefore, if they are maintained and kept in good shape, they stand to increase in value like other homes.