The Grissim Guides to Manufactured Homes and Land

News & Notes Archive - September 2006

Ratings Guide a brisk best seller, second printing ordered. Industry feeling the impact of the first-ever construction ratings – some builders unhappy with their low scores.

I am pleased to report that sales of The Grissim Ratings Guide to Manufactured Homes have been so strong that we have just ordered a second printing keep up with the continued demand. As we had hoped, when the book was published earlier this year, it was an immediate hit with consumers who have long wanted a Consumer Reports type of guide that tells them who’s who in the MH universe and what kind of homes they build. Interestingly, many MH builders and retailers have also purchased the guide, if only to see what I had to say about them and their products.

When I began researching the book, I heard from several sources that some manufactured home producers were furious that an industry outsider would be so presumptuous as to attempt rating MH builders. I also heard many were cringing in anticipation of what their report cards would say about them.

As I anticipated, some manufacturers were not at all happy with their rating, but as I have been quick to say, “Don’t shoot the messenger. All I did was hold up a mirror.” The truth is, some MH builders turn out a poorly constructed product. Some of their homes are so cheap you can probably kick your way out of them. I have no quarrel with the builders of these low end homes as long as they’re honest about their products and refrain from deceptive sales practices, trying to sell them as something they’re not.

What I did not expect (but certainly hoped for) was the MH industry would consider the guide to be on the whole accurate, fair and unbiased. So far that is the feedback I have received. I’ll be the first to admit that the guide isn’t perfect, but it’s a start.

Not surprisingly, some manufacturers were happy with their rating. Some wanted to reprint the positive things in their listing while ignoring any negative comments. I refused. My rule: either you print the whole listing comment or none at all. I have exercised careful control of the Ratings Guide content, insisting on written permission for any usage.

Yes, I could make money by licensing my name and selling permission to use the ratings content, but I refuse to do so, for the simple reason that doing so would compromise my credibility as a journalist and consumer advocate. For the record, other than the revenue from book sales, I neither accept nor solicit a dime from the industry about which I write (and that includes freebies of any kind), and my readers have my assurances that I intend to keep it that way.

So far, I have given permissions to only two manufacturers–Jacobsen Homes of Florida and Laurel Creek Homes of Arizona–to use content from the guide. If you see any other retailer or manufacturer making use of The Ratings Guide for advertising and promotion, I invite you to contact me to verify that they are doing so with permission.

Manufactured home production totals down significantly. What this means for MH shoppers.

Figures released early this month for the total number of HUD-code homes shipped from factories around the US for the month of July (the most recent month for which numbers are available) show a nearly 14% drop in output (to just over 8,000 homes) compared to the same month the previous year. This is the biggest decline since February, 2004. Multi-section homes which comprise 70% of the MH market saw a drop of nearly 17% –not a good sign for an industry that had just emerged in 2005 from a severe six-year down turn.

Showing the steepest declines were the previously hot states of California (down 33%), Florida (down 42%) and Arizona (down 17%) as well as the Northeast. The housing market in general has cooled off considerably in those states, particularly in southern Florida. At this rate, analysts are predicting the total number of manufactured homes built in 2006 will be around 125,000, the lowest in many years. Earlier this year the prediction was as high as 140,000.

There were bright spots in MS, AL and LA where post-Katrina rebuilding is gathering momentum, but in general the MH market is flat to anemic. What this means for home shoppers is, retail sales centers in states where sales are down will be anxious to win your business, putting home buyers in a strong negotiating position. In addition, fewer factory orders mean a faster delivery of the home you order–four to five weeks instead of two or three months.

The Grissim Buyer’s Guide to Manufactured Homes & Land provides a lot of information on how to negotiate the best price, as well as how to determine the fair asking price of a home.