Manufactured home vs modular home vs stick built home?

<<>> Manufactured homes, modular homes and stick built homes are often confused. All three types of homes are getting built better and better. I’ve seen two story manufactured homes and two story modular homes, but for the most part, in WA State, they are one story homes. Here is how you tell the differences between the three and a note on how they are treated in the appraisal.

There are three ways to identify a manufactured home. First, each section of the home will have a HUD tag attached to each section of the home. These metal tags are usually red, but many times, the owner has painted over them. Sometimes the owner has sided over them. Each tag will provide a series of letters and number. The first three numbers will identify the state that the home was manufactured in and the second string of numbers will identify the home.

Manufactured homes will have a HUD certification Plate. This is basically a one page piece of paper that is located on the inside of the home. This piece of paper is usually located under the kitchen sink attached to the side; however, sometimes it is located in the cabinet along side the cook stove or in the cabinet above the refrigerator. I’ve even found this information on the inside door of the electrical panel, so it just depends on the make and model of the home. This piece of paper will identify the make, model and serial number of the home.

All manufactured homes are built at a factory and moved to the site via a truck. As a result, all manufactured homes have an undercarriage or steel beams that are used to carry the home. This is unique to manufactured homes. If the HUD tags are removed and you’re not sure, look for the steel beams under the home. This is a good indication that it is a manufactured home.

Other factors that lead to further support that it is a manufactured home is a low roof line. This can not always be used, but normally, manufactured homes will offer a lower pitched roof as compared to other homes in the area.

Modular homes

Modular homes can look just like manufactured homes. No matter what the owner tells you, the quality can be worse than a manufactured home too. I’ve personally seen this to be true. A Modular home will not have the tag numbers attached to each side with the numbers to identify the home, but they will have a tag. The tag will be on one corner of the home.

Modular homes are brought to the site by a truck and the home is assembled from pieces. So the best way to explain this is that the homes are partially built in the factory and moved to the site in a truck and finished at the site. For this reason, Modular homes do not have an undercarriage or a steel frame that the home sits on. This is the main method on how to tell the difference between a manufactured home and a modular home.

While the modular home looks a lot like a manufactured home in many cases it is to be treated like a stick built home. Appraisers will use modular homes as a first choice, as these homes are most like the subject and stick built homes as a second choice.

The appraiser will use manufactured homes to compare with other manufactured homes. If they can’t find any in the same location as the subject, they will expand the market area and explain the reasoning in the appraisal.

Stick built (site built homes)

Stick built homes are traditional homes that are most common in the industry. These homes are built one piece of wood at a time until the home is complete. Stick built homes will usually never be compared to a manufactured home or a modular home. In my ten years of appraising, I used a manufactured home in one case when I needed to support the river views of the subject, but these will only be used for a last resort and must be explained in the appraisal.

In conclusion, manufactured home will usually only be compared to other manufactured home. Modular homes will be compared to modular homes for a first choice and stick built homes as a second choice. If the modular home looks like a manufactured home, appraisers may use one or two manufacture homes just because of the appeal and look. But for FHA purposes, it is noted that modular homes should be treated and compared to stick built homes. Stick built homes will be compared with other stick built homes and in almost all cases, will never be compared to a manufactured home. The only time this will deviate is when the appraiser must use a sale to support a unique feature such as river frontage, Lake Frontage or other unique feature.