The Grissim Guides to Manufactured Homes and Land

My situation is a bit different than most, but not more different than the situation that a lot of people my age are finding themselves in during this incredible age of rising housing prices.

You see, I am retiring. I have owned a design firm for over 30 years and a real estate syndication firm for over 35 years. I have a good working knowledge of the construction trades. I am, however, as they say "of a age" and I am a widow, so I had hoped to purchase a somewhat instant home to place on some property I own in Northern Arizona.  The land was already improved with the setting of utilities to the site and a septic tank installed.

During my years of real estate I learned a bit about factory building and its value as opposed to the problems you can have with site built. Especially when you live in FL you want a new home in AZ. Wanting a relatively "instant" home, I decided at first on the ultimate instant home... a manufactured home. Now mind you, I have over $150,000 in cash and a fairly high credit rating and I was looking at triple wides, or double wides plus a TAG. Substantial homes.

At the start, I was only interested in dealing with factory-owned retail outlets, as I believed (mistakenly, as it turned out) that since they were dealing with a single product, their conduct and sales would be somewhat regulated by their regional sale directors. Little did I understand the mentality that pervades this particular industry!

I simply "shopped" as a single woman off the street who told them that I was "gathering information", I was "a cash buyer", and I was a "very serious buyer" who wanted to have a home ready to close in June of 2006. I was friendly and polite, but unwilling to be manipulated, double-teamed or hard-sold.

The first problem I encountered was the sales peoples’ inability to knowledgeably answer my questions about their product. The second was the difficulty in getting a basic price, including delivery and set-up. The across-the-board excuse for this was that hurricane Katrina had driven up the construction materials prices and they were still rising. Sales people came right out and said I better act fast before the prices go up more...and, also, because it was now taking six months or longer to deliver a home!

I was still unwilling to be "pushed", but said I was serious and would sign a deposit agreement when I felt I had adequate information for a decision.

In the case of Palm Harbor Homes it took me three months of talking and emailing...finally even to the actual factory. I finally got a basic price, but with constant threats to either place a deposit on that price to guarantee it (for a short period of time), or risk losing it to the spiraling new prices. (I never got prices on the options.)

Cavco and Silvercrest had no company-owned stores and worked only through independent retailers. Fine, but those independent retailers didn't want to deal with me at all without a deposit and both said the deposit would have to be a high amount because I was a cash buyer.

I never got any prices from the Cavco retailer, even after I called their factory "boss"

As for Silvercrest, I had to call the Silvercrest California factory to make a stink before I even got to speak with their retailer, who promptly gave me the basic prices for two of their "Manor" series homes and then made me beg to speak to her again each time I had a question. She refused to return telephone calls or answer emails, saying she was too busy for that.

When, during a telephone call, I said that I'd fly out to AZ with my checkbook in hand, BUT before coming I wanted to read over their blank sales agreement and warranties and the warranties of the transporter and installer, I was told that they would "go over" the terms of the sales agreement with me when I signed, and, by the way, the warranties were from the factory, not them. She added the transporter and installer were licensed with the State and I could research that if I wished on my own.

I had a few polite but choice words to say about how I viewed that response and I walked away in total disgust with the unprofessionalism...and just plain bad vibes I got...with the world of manufactured homes. I'm sure its needless for me to say, I won't be purchasing a manufactured home.

My emotional response was that I swung almost entirely back to site built homes. I decided to take a look at panelized homes...but despite leaving telephone calls and sending emails via their websites, no one responded...ever!

I then took a closer look at modular homes. I began as before, even with two of the same players as manufactured homes, as it seems that it is they who are now the big players in modular. I started with Palm Harbor's Discovery Homes. This time I found complete professionalism and good knowledge of the product. They were very helpful. The only thing I had a problem with is the exorbitant pricing per square foot, which essentially is about $10 per square less than stick built IF you don't make many customizing changes. And the options offered are VERY limited.  Same with Genesis Homes.

Example: the Palm Harbor Discovery Homes model, "The Buckeye w/ Family Room" was quoted to me at a Base Cash Price of   $169,000 + $50,450 for an "alternate"  exterior. They are using the very misleading terminology of "alternate" when they, in fact price, it out as "OPTIONAL"...in this case, stucco with tile roof.

Another caveat: Although it is not mentioned on their website, Palm Harbor does not, as it turned out, offer the "alternate High Country" exterior in the high country of AZ!) + $25,000-40,000 (double or triple) for a matching, attached garage. This price does not include options, add-ons other than the garage or the general permits & fees, site prep, paving and landscaping....and, of course, the cost of the land. You do the math. When completed, this home is going to cost somewhere in the neighborhood of $350,000.

Too rich for my retiring boomer's pocketbook, which is looking for something in the neighborhood of $200-250,000 max...and, surely, don't I represent exactly the market that they must have had in mind?!

I decided, in order to bring down the overall cost, to downsize my "ideal" home and with the addition of a smaller family room, I choose The Lantana, which is a smaller version of The Buckeye model. After saying that I found the marketing of the exteriors available VERY misleading, I also said that I would accept what I assume to be the "standard" Craftsman exterior and add a single car garage. I went back to the manager of the Palm Harbor Discovery Homes whom I was dealing with before and asked for that to be priced out for me. For whatever reason, I have never received a response.

I have listed my property on the market for sale now, and as Kingman, AZ, is currently a hot market, I expect it will sell rapidly. And for an "instant home", I am now actively looking at builder's spec houses in developments that suit me with even more cash in my pocket.

That is the whole story of my attempt to buy a factory built house.

Moral of this saga:  I was a fully "converted" believer that factory-built is the way of the future. I owned my own land & I could afford to pay (at least mostly, in this market) cash for the home.  However, IMHO, it would seem that the mentality of those at the top in the administration of the factory itself, and their pricing and marketing strategies, are the biggest problem for the industry at this time. They seem to still have a "fuzzy thinking" problem that just can't separate itself from their beginnings.