Manufactured Homes

Answers to Your Questions About Manufactured Housing

What is a manufactured home?

Manufactured homes, formerly called mobile homes, are built in a factory. Each home conforms to the US government's Manufactured Home Construction and Safety Standards (HUD code), rather than to building codes enforced at the home's destination. Each home or segment of a home is labeled with a red tag that is the manufacturer's guarantee the home was built to conform to the HUD code.

Manufactured homes are built on a non-removable steel chassis and transported to the building site on their own wheels.

Where can I find details about my manufactured home's build date and origins?

To find the date of manufacture, look for a data plate located inside your home, usually on or near the main electrical panel, in a kitchen cabinet, or in a bedroom closet.

The data plate offers information about the home's heating, cooling, and other appliances and components. The data plate also shows you the wind zone and snow load for which the home was built.

A red HUD label with a stamped serial number should be attached to the exterior of the home.

May I put my manufactured home on any lot or tract of land?

No. Some communities and developments do not allow manufactured housing. Research local zoning ordinances, deed restrictions, restrictive covenants, and other similar documents before purchasing land for a manufactured home.

May I move my manufactured home to another location?

Yes, but make sure you use a transport company that is familiar with the laws for moving such structures. You should also consider the zone for which the manufactured home was originally constructed. Never move a manufactured home to a zone with more restrictive wind, thermal, or roof load requirements than the zone for which it was built. Check the data plate for zoning information.

Climate differences and the cost of moving your manufactured home might make it more practical to sell it and purchase another at your new location.

Who will finance my manufactured home?

Many manufactured homes are financed with a retail installment contract, available through the retailer that sells you the home. Many lenders will grant a conventional mortgage for manufactured homes, but will likely require that the home is placed on a permanent foundation. Manufactured homes are eligible for FHA and VA home loans.

Is my new manufactured home covered by warranty?

Most manufacturers offer a warranty that covers the home and its systems during a stated warranty period. Some appliBlogger: Information On Home Buying Articles and News - Create Posthttp://homebuying.about.com/cs/manufmakers/a/manufacturedfaq.htmances may be covered by their own warranties. Before you purchase a manufactured home, find out which items are covered by warranty, who offers the warranty, and how warranty repairs are performed.

What if I have problems with my manufactured home?

HUD recommends that you first contact the retailer who sold you the home. If problems cannot be resolved, contact the manufacturer. If you still have complaints or concerns, contact HUD or a related state agency.

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How To Recognize a Manufactured Home

Manufactured homes are built to conform to the Manufactured Home Construction and Safety Standards (HUD Code), rather than conforming to building codes at their individual destinations. Today's manufactured homes come in many shapes and styles, and often do not resemble a typical single or doublewide mobile home. Here are some tips to help home buyers recognize manufactured housing.

Difficulty: Easy

Time Required: Varies

Here's How:

1. A manufactured home should have a metal tag on the exterior of each of its transportable sections. Walk around the structure, looking for a small, red metal identification plate. If it's not there, look for holes that indicate something might have been removed.
2. If you cannot find a tag locate the electrical panel box inside the home and open its door. Look for a data plate, which contains details about the home, including its date of manufacture. If the plate is not there, look in kitchen cabinets and bedroom closets. (Modular homes have data sheets, with references made about building inspections--which wouldn't be included for manufactured housing.)
3. Go back outside and look underneath the home. Manufactured homes are built on a non-removable steel chassis, which should be visible underneath. 'Double wide' manufactured homes are assembled from two units joined lengthwise, usually where the roof peaks.
4. Manufactured homes arrive on their own wheels. Can you see where wheels were attached? Are they still there?
5. Look again at the ends of the structure. Is there a vertical trim piece that indicates where two segments have been pieced together? Can you see where a 'tongue' might have been bolted to the structure? (Holding the 'trailer hitch' used to pull it to the home site.)
6. Are interior walls made from drywall or paneling? It's by no means a sure identification, but many manufactured homes (especially older homes) do not contain drywall.
7. Manufactured homes often have less of a roof pitch than a 'stick built' home. Keep in mind that manufactured structures vary in design, and newer homes in the manufactured category may look very much like modular or site-built houses.
8. If you still aren't sure, ask for a property disclosure from the home owner. The owner or listing agent should verify (in writing) what type of structure it is.

Tips:

1. Manufactured homes are built to conform to the same code, no matter where they will be delivered. Modular homes and site-built homes are both built to conform to all local building codes at their final destinations.
2. Not all lenders will grant mortgages for manufactured homes. And if they do, there may be specific requirements. Some do not make loans for single wide manufactured homes. Some will not grant a loan for a home that is not on a permanent foundation. Manufactured housing qualifies for Blogger: Information On Home Buying Articles and News - Create PostFHA and VA loans.
3. Many home buyers purchase manufactured housing as part of a land-home package.
4. Some communities and housing developments have restrictions against manufactured housing. Some deeds may forbid you to place a manufactured home on land, even if there are many manufactured homes surrounding the parcel. Get the facts before you purchase land for a manufactured home.
5. If the home's identification plate is missing, HUD can retrieve historical information from details on the interior data plate. If both items are missing, you may need to gather prior financing history from the current owners in order to complete your own financing.

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Home Selling - The Worst Home Selling Mistake a Seller Can Make

#1 Home Selling Mistake

There's a great saying in the real estate business. To succeed in life, you want to be:

• The First Child
• The Second Spouse
• The Third Realtor

And like with most sayings, there is some truth in that statement, as agents who pick up listings after sellers have made major mistakes will attest.

But We Want More Money

When the average seller sits down to interview real estate agents, it's easy to get caught up in the excitement over choosing a sales price. More money means more financial opportunities for the homeowner. Perhaps it means the seller can afford to buy a more expensive home, help pay for her child's college education or take that greatly overdue vacation. Unfortunately, uninformed sellers often choose the listing agent who suggests the highest list price, which is the worst mistake a seller can make.

Establishing Value
The truth is it doesn't really matter how much money you think your home is worth.
Nor does it matter what your agent thinks or ten other agents just like her. The person whose opinion matters is the buyer who makes an offer. Pricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value, an educated opinion. This method is the same way an appraiser evaluates a home. And no two appraisals are ever exactly the same; however, they are generally close to each other. In other words, there is no hard and fast price tag to slap on your home. It's only an educated guess and the market will dictate the price.

Is it Too Low?

Homes sell at a price a buyer is willing to pay and a seller is willing to accept. If a home is priced too low, priced under the competition, the seller should receive multiple offers to drive up the price to market value. So there is little danger in pricing a home too low. The danger lies in pricing it too high and selecting your agent solely on opinion of value.

How It Starts To Go Wrong

The seller of the Spanish home pictured on this page didn't even interview her real estate agents. She plucked the first one off the Internet because, "He looked like such a nice guy." He priced her home at $1.3 million. This agent never heard the local agents chuckling behind his back because he worked in a different city. After 90 days, the listing expired.

Continues To Go Wrong

The next agent, also from another town, listed the home at $1.1 million. Months passed. Eventually the price dropped to just under $900,000. Still no takers. A few lookie-loos, but no serious buyers.

More Than a Year Later

By the time the last agent was hired to list this home, the seller had grown weary and exhausted. It was now 12 months later. Together, the seller and her agent priced the home at $695,000. It immediately sold for all cash. The sad part is the comparable sales in the neighborhood fully justified a price of $835,000, but the home had been on the market for too long at the wrong price, and now the market had softened.

Agents Specialize in Expired Listings

There is an agent in my office whose basic real estate practice is comprised of calling sellers of expired listings and relisting them at market value. He sits in a small room with a phone, desk and chair, dialing number after number. Last year he sold more than 34 homes valued at more than $13,600,000, and he has 18 active listings right now. He makes a pretty good living repackaging overpriced homes.

Protect Yourself

The question is how much money have those expired listings cost the sellers? The financial loss often exceeds the extra mortgage payments paid and goes beyond the uncompensated hassle factor of trying to keep a home spotless during showings. It affects the value that a buyer ultimately chooses to pay because it's not a fresh listing anymore. It's now stale, dated, a market-worn home that was overpriced for too long. Don't let it happen to you. Don't be that seller of an expired listing.

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Shopping For a Good Home Deal

Everyone wants a good deal. But, good deals are few and far between in the many low-inventory markets around the country.

Recently a couple was trying to buy a starter home in El Cerrito, a hot housing market in the San Francisco Bay area. They lost out over and over again in multiple offer competitions. So they decided to try a new strategy. Rather than continue making offers on hot new listings in their price range, they made an offer on an over-priced listing that had been on the market awhile and hadn't sold.

The seller had lowered the list price just as the buyers made their offer. The buyers had no competition and were successful in buying the property. Their good fortune was that they were the first to hear that the seller was willing to accept less than his list price.

HOUSE HUNTING TIP: If you're having troubles finding a home to buy—or a home to buy at the right price—consider listings that aren't drawing a lot of attention from other buyers. Well-located listings at the best price and in the best condition are the ones that sell the fastest, and for the most money. To find a good deal, you have to be willing to go against the herd.

There is a certain comfort, however, in buying a property that everyone else wants. A listing that's in high demand is likely to be desirable when you want to sell it. Buying a prime listing can be a good investment, as long as you don't over-pay. But, in a multiple offer competition, you may have to pay a premium to be the successful bidder.

You don't want to buy just any listing that's not selling. If the property has defects that can't be fixed—like too many levels or a chopped up floor plan—you may have a difficult time selling it later. Also, if the sellers are unrealistic about the price or condition of their property, you may not want to waste your time.

Before you make an offer on an over-priced listing, have your agent talk with the listing agent and try to determine the seller's motivation. Find out if there have been any offers. If there have, why didn't the property sell? If the seller is obstinate about his price, go on to another property.

However, if the seller is considering a price reduction, give it a go. If the listing agent thinks the seller is not ready to negotiate, ask to be informed when the seller has a change of heart. The best time to make an offer on an over-priced listing is usually just before the seller drops the price. Otherwise, you could face competition.

Most buyers gravitate to the most attractive listings. Buyers who can see past a dowdy décor may pick up a property at a bargain price. The trick is to know a house with potential when you see it.

Looking at a lot of listings and analyzing what you see can help. Often it's the paint colors, updated finishes and attractive furnishings that make a listing desirable. With a little imagination, you could create an appealing ambience yourself, after you buy.

Listings that are back on the market because a deal fell apart present another opportunity. These listings often sell for less the second time around. Find out why the deal fell apart. But remember to buy a house with good bones, not one with serious problems.

THE CLOSING: Homes with good appreciation potential are always a good deal. Look in areas that are adjacent to neighborhoods that have already experienced a significant run-up in prices. These areas could be the next hot markets.

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Should I Buy Real Estate at the Top of the Market?

Buying a first home is a scary experience. It's easy to imagine the worst. How will I know a good house when I see it? What if I buy a house I can't sell? How can I make sure I'm making a good investment? What if I pay too much and home prices drop?

After years of hefty home-price appreciations, it's natural to wonder how long the good times will last. Real estate markets are cyclical: prices go up and they go down. However, over the long term in this country, prices have tended to move higher. At the end of the 1970s, after a big run up in home prices, real estate agents had a hard time believing that prices could go any higher. The market did cool in the early 1980s. But today home prices are three to four times higher than they were then in some parts of the country.

HOUSE HUNTING TIP: To protect yourself when you buy a home, adopt a long-range horizon. Don't buy unless you plan to hold the property for at least 5-10 years. This way you can ride out any downturns in the market and sell when the market improves. Try to avoid getting into a situation where you are forced to sell in a down market. If you have any questions about how long you'll be staying in the area, postpone your buying plans until there's more certainty in your life.

For the buy and hold strategy to work you need to make sure that the home you buy will suit your long-term needs. This usually means: don't buy a home that's too small. Many first-time buyers make the mistake of buying a tiny starter home because it's charming and it's in the right neighborhood. But, two bedrooms, one bath and a postage-stamp lot doesn't leave much room for growth.

A better strategy might be to buy on the outskirts of a prime neighborhood where you can buy a 3-bedroom, 2-bath home for the approximately the same price. You might not have the most prestigious address today, but you could experience good appreciation, which will finance your trade-up move. And, you'll be comfortable in the mean time.

One first-time buyer complained that in her price range, she could only afford to buy a 1,500-square-foot house. It's nice to have more square feet: to a certain extent, the bigger, the better. However, a well-designed, 1,500-square-foot home can be a very comfortable place to live.

Some floor plans are better than others. Ideally, there should be good flow between the rooms. A home with a central hall that leads to many rooms usually is easier to live in than one that's laid out like a train where you have to pass through rooms to reach other rooms. Good indoor-outdoor living makes a big difference. A deck or patio off the kitchen, family room or dining room provides additional usable space and makes the home feel larger.

Some buyers put off their home buying plans for fear that the real estate market will fall. This seemingly sane strategy can be risky if prices don't drop. You could be kicking yourself next year when you haven't bought and home prices are further out of reach.

THE CLOSING: On the other hand, there's usually no need to rush to buy in a market that's bloated with inventory, particularly if new housing developments are in the works. An over-supply of housing relative to buyer demand puts a downward pressure on home prices.

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Should You Buy A Home Through A Real Estate Agent?

One of the first things many people do when beginning their search for a new home is enlist the help of a real estate agent. It is the realtor's job, after all, to help you find the home that is perfect for you.

But is it always in the home shopper's best interest to use a real estate agent? If you are in the market for a resale home, then yes, a real estate agent may be of great assistance. However, if you are looking for a new-construction home, you are probably best served by going it alone.

First of all, it is easy to find new-home communities on your own. Just go to the Internet, where you'll find great resources, such as American Home Guides, that will provide you with tons of information on new homes in your area. You can also pick up the local newspaper or new-home magazine. Or just drive around. It's always easy to spot new-home communities with their signs and flags.

Once you get to a community, there are sales people on staff who can show you the models, floor plans, and site plans, and answer all of your questions. If you are using a real estate agent, his or her job is basically finished once you walk into the sales office. In fact, they often do not even have to be with you in order to receive a commission if you buy a home at that community.

And, believe it or not, the commission your realtor receives can make a difference in your pocket. While a realtor is certainly entitled to the 3 percent commission he or she typically makes on a new home sale (less than they make on resales), it represents a big chunk of the builder's profit margin. As a result, the builder is going to be much less likely to throw in some of the "extras" or closing costs incentives that you might have received if you had come in on your own.

So, if you're thinking about a new-home community, think twice about using a real estate agent. Often, the agents themselves will stay away from showing you new-home communities. If you purchase a new construction home, the agent makes a lesser commission than he would on a resale and does not get paid in full until you close on the home (sometimes six to eight months after the original purchase if the home has to be built).

That is not to say that realtors do not have a place in home shopping. For those seeking a resale, the real estate agent can be an invaluable helper in locating a one-of-a-kind home that meets your needs. Look for more on the benefits of using a real estate agent in our next issue.

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The Perfect Escrow - Does it Exist?

Very simply defined, an escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition or event. The California Escrow Law – Section 17003 of the Financial Code – provides the legal definition.

Why Do I Need an Escrow?

Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.

Escrow – How Does it Work?

The principals to the escrow – buyer, seller, lender, borrower – cause escrow instructions, most usually in writing, to be created, signed and delivered to the escrow officer. If a broker is involved, he will normally provide the escrow officer with the information necessary for the preparation of your escrow instructions and documents.

The escrow officer will process the escrow, in accordance with the escrow instructions, and when all conditions required in the escrow can be met or achieved, the escrow will be "closed." Each escrow, although following a similar pattern, will be different in some respects, as it deals with your property and the transaction at hand.

The duties of an escrow holder include; following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds and/or documents in accordance with the instruction; paying all bills as authorized; responding to authorized requests from the principals; closing the escrow only when all terms funds in accordance with instructions and provide an accounting for same – the Closing or Settlement Statement.

Who Chooses the Escrow?

The selection of the escrow holder is normally done by agreement between the principals. If a real estate broker is involved in the transaction, the broker may recommend an escrow holder. However, it is the right of the principals to use an escrow holder who is competent and who is experienced in handling the type of escrow at hand. There are laws that prohibit the payment of referral fees; this affords the consumer the best possible escrow services without any compromise caused by a person receiving a referral fee.

What Do I have to do while in Escrow?

The key to any transaction as important as your sale, purchase or loan is to read and understand your escrow instructions. If you do not understand them, you should ask your escrow officer to explain the instructions.

Your escrow officer is not an attorney and cannot practice law; you should consult your lawyer for legal advice. Do not expect your escrow officer to advise you as to whether or not you have a "good deal" or are doing things the right way. The escrow officer is there to follow the instructions given by the principals in the escrow.

In order to expedite the closing of the escrow, you should check with your escrow officer as to what specific items you could do to assist. Ask the question – "What can I do to expedite the closing of this escrow?"

Respond quickly to correspondence. This will assist in the timely closing of the transaction.

If you are required to deliver funds into the escrow, make sure that you provide "good" funds in the form required by the escrow officer. Company procedures differ in this regard, and there are many ways you can help at the time of closing; check with your escrow officer. Do not give the escrow officer a personal check and expect the escrow to close immediately; the escrow can only close on cleared funds, and the processing of a personal check can take days, possibly even a week or more.

When the escrow officer closes the escrow, some of you may want the closing papers, checks, title policies, statements, etc. Made available immediately. There are many aspects to the closing of the escrow, and some of these cannot be processed on the day of the closing; they may take several days. If you have a special need, for example, a cashier’s check on the day of closing, you should communicate that need to the escrow officer early in the processing of the escrow.

Escrow and Your New Loan

If you are obtaining a new loan, your escrow officer will be in touch with the lender who will need copies of the escrow instructions, the preliminary title report and any other documents escrow could supply. In the processing and the closing of the escrow, the escrow holder is obligated to comply with the lender’s instructions.

It has become a practice of some lenders to forward their loan documents to escrow for signing. You should be aware that these papers are lender’s documents and cannot be explained or interpreted by the escrow officer. You have the option of requesting a representative from the lender’s office to be present for explanation, or arrange to meet with your lender to sign the documents in their office.

Escrow: What is a Closing Statement?

A closing statement is an accounting, in writing, prepared at the close of escrow which sets forth the charges and credits of your account. The items shown on the statement will reflect the purchase price, the funds deposited or credited to your account, payoffs on existing encumbrances and/or liens, the costs for all services and a determination of the funds you are entitled to at the close of the escrow. When you receive your closing papers, review the closing statement; it is extremely logical and reflects the financial aspects of your transaction. If anything does not make sense to you, you should ask your escrow officer for an explanation.

When going through your closing papers, examine all of them; there may even be a refund check hiding in there. Cash the check quickly, please. Be sure to have the check properly endorsed. All payees must endorse the check. This will eliminate the check being returned unpaid due to irregular or missing endorsements.

Your closing statement and all other escrow papers should be kept virtually forever for income tax purposes.

Your accountant will need the information about the sale or purchase of the property. IRS and other agencies may require you to prove your costs and/or profit on the sale of any property. The closing statement will assist in this task.

Do not rely on your escrow holder retaining the escrow file so that you can "always call and get copies of the closing statement." Most escrow holders will be destroying the files after the statutory retention period, usually five years. Maintaining and storing the closed escrow files is a costly endeavor to the escrow holder. Therefore, a nominal fee may be charged by your escrow holder for the retrieval of a file from storage, photocopying the requested documents and returning the file to storage.

What Fees and Costs will be Charged?

Escrow fees are not regulated by the State. Escrow holder, like any other businesses, will charge fees that are commensurate with the costs of producing the service, the liability undertaken, and the overhead expenses which include a profit factor. Therefore, the fees will vary between companies and from county to county. Normally, the escrow holder will follow its minimum fee schedule, which will provide for extra charges based upon the differing elements of your escrow. On occasions, an additional fee will be charged for unusual expenditures of time on a given transaction.

The escrow holder has no control over the costs of other services that are obtained, such as the title insurance policy, the lender’s charges, insurance, recording charges, etc.

Your escrow officer, upon request, can provide you with an estimate of the escrow fees and costs as well as fees charged by others, provided such information is available.

What About Cancellations?

No escrow is opened with the intention that it will cancel, but there are occasions when a contingency cannot be met or when the parties disagree during the pendency of the escrow. Some escrow holders provide for such an event by incorporating an instruction in the typed or printed General Provisions.

Ordinarily, an escrow holder will take the positions that no funds on deposit can be refunded until the escrow holder is in receipt of mutual cancellation instructions signed by the principals. The escrow holder cannot normally make a determination as to who is the "rightful" party in a dispute on a cancellation and therefore will not return the funds or documents until the principals agree; the escrow holder is not a judge.

Do expect to be charged a cancellation fee, as this is a charge for professional services rendered and quite often for several "out of pocket" expenses that have been incurred on the client’s behalf. These fees can vary from company to company depending upon their policies.

Sometime, when a dispute exists, the escrow holder may be forced to allow a court to decide which party is entitled to what documents or funds; this is called an Interpleader Action. Fortunately, most disputes are resolved before the Interpleader is filed, as the costs for such legal actions are extreme. Those costs, incidentally, are normally paid out of the funds on deposit in the escrow.

What about Title Insurance?

Title Insurance is usually obtained when real property is purchased. The policy of title insurance insures the owner and/or the lender of ownership of the property. There are various coverages afforded, but a basic policy insures that the buyer is the owner and that any lender shown on the policy is an "insured" lender. Many different types of extended coverages are available; for example, an ALTA policy is quite often required by institutional lender to afford them additional protection under the title insurance policy. The title policy is written after an extensive examination of the public record is made and the recording of the required documents as called for in the escrow.

The title insurance policy fee is a one-time fee, paid at the close of escrow. The determination of who pays for the policy is not uniform from county to county in California. In some counties, the buyer will pay while in others the seller will pay. In other counties the seller will pay for the lender’s title policy. But in almost every case, the question of who pays closing costs is a matter of agreement between the parties. Usually this agreement is based on the customary practice in your county or area. In the case of some FHA or VA transactions, the escrow officer must follow the guidelines as required by the lender and/or government.

What About Property Taxes?

The terms of your transaction and the resultant escrow instructions determine how the property taxes will be handled. If there is no mention of the proration of taxes, your escrow officer will not deal with any credits or charges for prorated taxes. However, if your escrow calls for a proration of taxes, there will be an item in your closing statement that will reflect either a credit or charge to your account. If the taxes are not paid (even though there has been a credit or charge against your account), the buyer is obligated to obtain a tax bill and pay the taxes. If the buyer does not have a tax bill with which to pay the taxes, you can request a bill from the Tax Collector; send a photocopy of the deed.

Supplemental Property Taxes is another concern of the buyer. Upon transfer of real property, a supplemental tax bill is generated. This is accomplished in cooperation with the County Assessor and the County Tax Collector.

Shortly after the close of an escrow involving the conveyance of real property, the County Assessor will request information about the property from the buyer. This information assists the Assessor in determining the value of the property for taxation purposes. The escrow holder may have previously supplied some of the information at the time of the closing of the escrow, via Preliminary Change of Ownership form that should accompany each deed when it is recorded.

The Perfect Escrow - Does it Exist?

Perfection is sometimes difficult to achieve, especially in dealing with the complexities of the escrow, the desires of the parties and other matters that are sometimes far beyond the control of the escrow officer. It is human nature to err on occasion, but your escrow officer has the background, training, education, support and systems in place necessary in order to accomplish the objectives of the escrow instructions.

In the event you have any problems in the handling of your escrow, you should first contact the escrow officer.

If you problem is not resolved, you should next contact the management or owner of the company.

If the matter requires additional attention, you can call the proper regulatory agency.

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