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Q & A with Dennis Walsh

I'm currently working with a developer who's interested in considering some different possibilities for a parcel of land at the outer edge of our area. In a recent conversation, he was asking what I might know about modular or prefabricated homes. Do you have any advice on this?

Thank you,

J.B., Cranberry, PA

Dennis Walsh, creator of Certified New Home Specialist answers new home sales questions

This is a question that's been coming up more often in the last several years … and it's no wonder as the cost of building continues to climb in many areas. One of the most significant factors contributing to these growing costs is the increasing shortage of skilled labor in the construction industry. The use of factory-built components including trusses, wall panels and modular systems is considered by many to offer the solution to this labor shortage in the long run.

Additionally, the controlled environment in a factory allows for a more efficient use of labor and machinery as well as the ability more easily monitor workmanship quality. These efficiencies, coupled with time savings in the field including fewer weather delays and shorter construction cycles typically result in significant savings in the overall cost of construction.

Although there are hundreds of manufacturers offering various products and systems, most factory built homes fall in the following categories:

1. Manufactured Homes – These are homes built to meet the requirements of the HUD building code. They are built on frames supported by axles and wheels for transport. Since they are built to the HUD code as opposed the local building codes, manufactured homes are appraised, financed and insured on a different basis than other forms.

2. Modular Homes – This refers to homes that are built in sections, or "modules", typically in the range of 12' wide by 24' long to allow transport by truck to the jobsite. These homes are built in the factory to meet the building code requirements of the community where they will be "live". Modular homes are offered today in many creative designs and once assembled, are often indistinguishable from site-built homes.

3. Panelized Homes – This includes various types of systems that involve the site assembly of separate sections or "panels" of walls, and sometimes floor and roof systems, that have been previously "panelized" in a factory. These are also built to meet the requirements of the local building codes.

This gives you a quick overview. For a more detailed understanding, I’ll first suggest that you complete our Residential Construction Certified™ course if you have not already done so.

Secondly, I recommend you explore some resources online including the Manufactured Housing Institute (MHI), as well as the sites of various factory-built housing manufacturers. You can also visit the National Association of Home Builders (NAHB) at NAHB.org for more information. The NAHB offers some information and resources through its "Systems Building Council". From the MHI, you should be able to gather information about member manufacturers as well as national events showcasing manufacturers and their products.

While there is often resistance to overcome due to the lack of consumer understanding, the pursuit of factory-built alternatives may be very worthwhile for you, your developer and prospective home buyers. As the building and real estate industries both work to find affordable solutions for our customers, the systems building industry continues to make great strides in providing viable solutions.

Best of luck to you, Dennis


Have a question for Dennis? Write to question@sellnewhomes.com...

 

Summer 2007 Newsletter


Home Builders Face Economic Challenges
 
Building for Today
 
Lofty Aspirations
 
Material World - Nature vs. Nurture
 
Agent of My Success - You!
 
Q & A with
Dennis Walsh

 

Real estate's #1 new home sales training program!



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