Before addressing this topic, it’s best first to understand that the term “modular” refers to the way a home is constructed rather than a type of home. Once a home is assembled and finished, it is almost indistinguishable from a well-constructed, site-built home, which is why modular refers to the method of construction and not necessarily a type of home.
Although understanding has become much better in recent years, there is a common misconception of the word "modular," and what it means. To those not yet educated about the subject, this word might connote trailer home. This could not be further from the truth. Modular homes are similar to site-built homes because they are permanent structures. Modular homes also go through stringent quality assurance checks throughout the building process and must comply with the same applicable codes as homes built on-site.
The majority of a modular home is completed at the production facility and is then delivered to a home site. A builder with a set crew installs the modular units on a permanent foundation, where the home is usually completed in about 60 to 120 days.
An appraisal is needed to get an estimate of a property's value and is required by a bank or mortgage lender to receive a home loan. An appraisal is needed by a homeowner to match the property's value to the investment. A modular home appraisal process is the same as a site-built home's valuation process. An appraiser will visit the property, look at the neighborhood, perform measurements and conducts a physical observation of the property.
He then will gather information to get a comparable or “comps”. A comp is a record of homes’ current selling prices of a similar style and square footage. From that information, he will make a fair determination about a home's value and render an appraisal estimate of the home. It is important to know that the appraiser makes no distinction in assessing in his comps between a modular home and a site-built one.
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