Month: January 2023

Do Ohio Prefab Homes Appraise Differently?

Appraisals are an essential part of the home buying and selling process. Trained experts come onsite to offer a property value based on criteria. Ohio prefab homes are subject to similar scrutiny by assessors, but location, age of residence, and other factors come into play. Find out whether Ohio prefab homes are appraised differently and how to get a good appraisal. 

What is an appraisal?

An appraisal looks at the valuation of a prefab home to determine a reasonable asking price at sale. Homeowners may also get appraisals when they look to refinance for equity purposes. Appraised prefab homes are inspected by approved appraisers using guides like the NADA Manufactured Housing Appraisal Guide. This guide looks at values based on construction, depreciation, and the process of getting reasonable retail value for a prefab home. Ohio is a growing market for prefab homes, with individuals and families moving here for the ever-increasing economy, good schools, and lower cost of living. 

Choosing an Appraiser

Before the housing market crash, homeowners could select their appraisers. Then the federal government took over the state’s appraisal process of appraising homes and authorized banks to use an approved list. Appraisers will review construction plans, design, and more. An approved appraiser is a person who covers the state (Ohio) and the region where the home is located. 

Modular vs. Site-Built Homes

The federal government regulates the appraisal of homes in Ohio. Banks offer their approved list of appraisers who inspect the home and draft their reports. Ohio prefab and site-built homes are the same when evaluating construction, as they are held to the same code standards. The U.S. The Department of Housing and Urban Development (HUD) considers them the same type of structure. Reporting is the same for appraisal purposes. An appraiser is typically going to look at the following:

  • Neighborhood
  • Zoning 
  • Size of lot
  • Presence of a garage
  • Exteriors like siding, roofing, and foundation
  • Interior spaces like bathrooms and kitchen, the presence of a basement, overall square footage, and construction materials used.

Ohio Prefab Homes

When it comes to Ohio prefab homes, they are evaluated much the same as site-built homes. The key difference is where (neighborhood, city, town) and how they were built (construction materials used, etc.). Prefab homes are holding their own against traditional brick-and-mortar homes in value and investment potential. Since Ohio is an up-and-coming market for prefab homes with great places to build, there is excellent potential in buying or selling a prefab home with retained value now and in the future. 

Millennials Are Struggling to Buy a Home: Are Modular Homes the Answer?

Millennials were born in the 1980s or 1990s, also known as ‘Gen Y.’ They would be approximately 26-41 years of age in 2022. Homeownership rates for millennials are lower than average. Rental costs have skyrocketed along with the cost of living expenses in many major cities across the United States. Millennials now number over 72 million people, outpacing the growth of other groups like Baby Boomers. From wars to big recessions, this group has seen it all. Traditional home ownership seems to elude this generation but modular home ownership is on the rise. This could be an answer to the question many millennials are asking themselves about whether home ownership is in their future. 

Widening Gap

In 2020, millennials made up a large portion of eligible homeowners but less than 50 percent owned their own homes. Every generation seems to be struggling to find the best pathway to home ownership. In a study released around Millennial home ownership, they are attracted to cities for work, to play, and even to build families. Affordability is a challenge due to rising costs in cities but a small percentage are still opting to live with family or rent with a group of friends. Savings have dwindled along with the lack of increased wages to keep pace with the cost of living. This widening gap is growing but mod home ownership presents some great opportunities if millennials struggle to buy homes. 

millenials struggle to buy homes

Mod Home Ownership

Manufactured, or mod, homes are rising in popularity. Young adults to retirees are wanting in on a great opportunity to purchase an affordable home in their targeted city or town. Some key reasons mod home ownership appeal to millennials:

  • Millennials usually have less credit or savings which makes a less expensive mod home a great starter or long-term investment
  • Many mod homes are getting in on the eco-friendly building practices such as lower carbon footprint which environmentally conscious millennials love. Energy efficiency is also a factor as that can be built into many mod homes easier than retrofitting it into a traditional brick and mortar home
  • Eco-friendly and otherwise, mod homes tend to come with fewer taxes, costs, and overall upkeep than traditional homes
  • Mod homes make a great investment for single millennials are young families who want to look to the future
  • Customizing a mod home is simpler than recreating what millennials want in a typical home. From floors to furniture and exteriors, many choices are available and prices are often lower than traditional homes with quicker turnaround times from purchase to move-in ready (if building from scratch)

In this modern economy, millennials are looking for flexibility, versatility, and durability. Those three components along with affordable housing options give mod home buying a better outlook than traditional homes. Even when the economy is struggling, mod homes offer a variety of options and financing to help millennials afford a home they will love and keep their dream alive of building a future for themselves and their family.

Green Valley Homes offers a large selection of Modular homes, multi-sectional homes, and pre-owned homes. Our commitment to you is that we will always put your needs first. If you have a specific budget in mind, call us. We will help you iron out the details to get the home you want at a price you can afford.  Call us if you are ready to get started today: (740) 385-2434

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