Here are some pictures from Facebook that caught my attention recently. If this is the quality of their finished product, they better get ready for the Facebook crowd to show increased interest in their homes.
Tuesday, June 14, 2011
HUNTINGTON HOMES AN EXCELLENT MODULAR FACTORY
Huntington Homes, located in East Montpelier, VT uses Facebook to get the word out about their good looking and energy efficient modular homes. If you are building modular home builder and want to add more eyeballs looking at your product, Facebook is a great way to make it happen.
Here are some pictures from Facebook that caught my attention recently. If this is the quality of their finished product, they better get ready for the Facebook crowd to show increased interest in their homes.
Here are some pictures from Facebook that caught my attention recently. If this is the quality of their finished product, they better get ready for the Facebook crowd to show increased interest in their homes.
SELECTING THE RIGHT MODULAR BUILDER IS IMPORTANT
Linkedin, the semi-social network for the white collar and industry leader crowd, is one of my Internet stops every day. I look at the latest comments about housing and real estate looking for trends and news that I feel the readers of this blog would enjoy.
Recently someone posted a topic on one of the "groups" asking for the distinction between modular and manufactured housing. One comment really caught my attention. It was from Greg Hewlett, owner of M H Imperial Homes in the Glen Falls, NY area.
You can feel his frustration with some modular home factories and I believe he makes a good argument as to why factories need to have a better vetting process.
Here is his comment:
Recently someone posted a topic on one of the "groups" asking for the distinction between modular and manufactured housing. One comment really caught my attention. It was from Greg Hewlett, owner of M H Imperial Homes in the Glen Falls, NY area.
Here is his comment:
We have an identity crisis in the industry but I do not agree with the causes stated above. We do very well with getting customers past the design limitations issues. 3D rendering tools hundreds of images for our customers to see that they have no design limitations. If they can get it from a site builder they can get it from us only better. That is for the customers I get to see. The issue I see is for the ones I never get to talk to because of the preconceived notions of what modular has to offer and the quality concerns.
The quality concerns are real. In my block there are 4 mod dealers. One of us is a builder. The other three are retailers. The majority of the mods built in my area are garbage and cost way more then people expected. That is because these old school trailer sales lots still work on "Sell" the home and let the customer fend for themselves on the rest. Hundreds of horror stories exist. We all know they exist in site building to, but it is harder to label them into a group the way mods are.
Every manufacture tells me how they would like to work with QUALITY builders but if they can sign up a sales lot they will regardless of reputation.
All the market of LEED and Green in the world is useless as long as some of those houses are pushed through dealers that leave the homeowner to fend for themselves. The best thing we are seeing is banks that will not finance if there is not a define GC other then the home owner. But what would solve our industries problems the fastest is legislation that requires the Dealer to be wholly responsible for the entire project. Over time this will weed out the non-builder dealers, improve the consistence of completion of modular homes and allow the industry to be seen as the Quality houses modular homes should be when properly completed. If would help if the manufactures bought in to this.
Posted by Greg Hewlett
Wednesday, June 8, 2011
7 REASONS TO BUILD A MODULAR HOME
Do you want to avoid the potential pitfalls of constructing a traditional home? If so, then you should definitely consider building a modular home instead. Such homes are built mostly off-site before they are moved on-site. Here are some need-to-know facts about modular homes:
They require little on-site work
Nearly all of the modular home's construction occurs in the factory. After the modules have been completed, the modular home business then transfers the modules to the on-site location of the home. After assembling the modules, the company must then add some on-site components.
Furthermore, since the factories where the homes are constructed are climate-controlled, modular homes can be built from springtime to wintertime. So there is no need to worry about construction being delayed when the weather is not cooperating.
They are built inside a climate-controlled factory
This is certainly one of the most noteworthy pluses of modular homes. The modules and the materials are protected in the climate-controlled environment of the factory. That keeps them safe until the completion of the modules' construction.
Their construction can be speedy
How fast can the construction of a modular home be? It frequently only requires about one-third of the time needed to build a traditional on-site home. Here is why. The construction of the modules within a controlled environment of a factory reduces the construction time. Another factor is that employees of the factory construct the modules. That makes the work more efficient than on-site locations, where the temporary replacement of contractors can increase the construction time. Ultimately, modular homes allow you to move into your home only weeks or a month after you have ordered it. That results in additional benefits, such as lower rates for financing.
They are temporarily mobile homes
This involves the transfer of the modules from the factory, to the on-site location. Companies first construct the modules in their factory. Then they move the modules to the home's on-site location. Afterwards, they piece together the modules at that particular site.
They are cost-effective
That is due to several factors. The main one is that the vast majority of the modules' construction happens in factories. That makes it as efficient as a clock's functioning. Additionally, using bulk building materials reduces the total cost of the home.
They provide magnificent quality
It would be logical to assume that the quality of modular homes is significantly lower than the quality of regular on-site homes. But that would be a mistake. One reason is that factories that manufacture modular homes possess all of the equipment that is needed to create complementary modules. Additionally, they have the materials that are required to provide homeowners with several options. Thirdly, manufacturers can easily make any changes needed to the modules, within the factory.
They use energy effectively
This is definitely one of the main benefits of modular homes. It is crucial whether you want to protect the world's environment, or to protect the money in your wallet. The energy's efficient usage is due to various factors. They include the insulation contained in their walls, and the high precision of the homes' modules.
They require little on-site work
Nearly all of the modular home's construction occurs in the factory. After the modules have been completed, the modular home business then transfers the modules to the on-site location of the home. After assembling the modules, the company must then add some on-site components.
Furthermore, since the factories where the homes are constructed are climate-controlled, modular homes can be built from springtime to wintertime. So there is no need to worry about construction being delayed when the weather is not cooperating.
They are built inside a climate-controlled factory
This is certainly one of the most noteworthy pluses of modular homes. The modules and the materials are protected in the climate-controlled environment of the factory. That keeps them safe until the completion of the modules' construction.
Their construction can be speedy
How fast can the construction of a modular home be? It frequently only requires about one-third of the time needed to build a traditional on-site home. Here is why. The construction of the modules within a controlled environment of a factory reduces the construction time. Another factor is that employees of the factory construct the modules. That makes the work more efficient than on-site locations, where the temporary replacement of contractors can increase the construction time. Ultimately, modular homes allow you to move into your home only weeks or a month after you have ordered it. That results in additional benefits, such as lower rates for financing.
They are temporarily mobile homes
This involves the transfer of the modules from the factory, to the on-site location. Companies first construct the modules in their factory. Then they move the modules to the home's on-site location. Afterwards, they piece together the modules at that particular site.
They are cost-effective
That is due to several factors. The main one is that the vast majority of the modules' construction happens in factories. That makes it as efficient as a clock's functioning. Additionally, using bulk building materials reduces the total cost of the home.
They provide magnificent quality
It would be logical to assume that the quality of modular homes is significantly lower than the quality of regular on-site homes. But that would be a mistake. One reason is that factories that manufacture modular homes possess all of the equipment that is needed to create complementary modules. Additionally, they have the materials that are required to provide homeowners with several options. Thirdly, manufacturers can easily make any changes needed to the modules, within the factory.
They use energy effectively
This is definitely one of the main benefits of modular homes. It is crucial whether you want to protect the world's environment, or to protect the money in your wallet. The energy's efficient usage is due to various factors. They include the insulation contained in their walls, and the high precision of the homes' modules.
After considering these above benefits of modular homes, you should certainly consider building one.
Monday, June 6, 2011
WHAT EXACTLY IS COST PER SQUARE FOOT?
Costs “per square foot” are like the 10-day weather forecast: they exist because there is a huge demand for them and the fact that they are usually woefully inaccurate is hardly ever factored.
To use a favorite Bushism, “there’s a lot of misunderestimating going on.”
When comparing costs per square foot it is critical to make sure you are using an apples-to-apples comparison. On the top of the equation ask yourself what costs are included. Does it include landscape, hardscape, permit fees, cost of money, sales tax and contingency? Then you have add other things like impact fees, design and engineering fees, etc.
If a modular home is what you are building, a lot of these items are included in the factory’s costs to the builder. One of the biggest benefits of building modular is that the builder can quickly give you a price on the home alone and then start pricing the other things if you agree that the house is in the price range.
On the bottom of the equation, what exactly, is the area measured? Just livable spaces, or are the garage, mechanical, storage, covered areas, deck and patio areas also included?
Manipulate these numbers for any project and you can easily have a 100% swing.
And that’s not accounting for what I call the Pinocchio effect; sometimes the most telling metric would be the builder’s nose length, measured before and after they spout out these numbers.
Friday, June 3, 2011
EXCEL MORE THAN JUST MODULAR HOMES
Excel Homes, Liverpool, PA finished an impressive housing complex at Temple University. Called the "The Modules at Templetown", it was designed in three months and delivered and finished on site in nine. And it's striving for LEED Silver certification.
This 72 unit residence building is expected to be the largest LEED certified housing project in the US.
For the Inhabitat story on this project: CLICK HERE
To read the Excel Homes blog article: CLICK HERE
NATIONWIDE INTRODUCES NEW LINE OF MODULAR HOMES
Nationwide Homes, the modular home arm of Palm Harbor, isn't letting any grass grow under their feet during this housing downturn. Even though Palm Harbor is in serious financial trouble with speculations that they may be purchased by one of the biggest HUD manufactures, they have introduced their latest series of homes...The Renew Collection.
This series is targeted for city infill lots with the houses being narrower than a lot of their competitors homes. Nationwide has resisted the change to major commercial work like some of the other big names in our industry. Excel Homes for example has contracts to build 600-800 modules this year for projects in NY state. That's a major chunk of their capacity.
Nationwide has always focused on the single family market and has been quite successful in it. It will have to be seen if they can continue to target this market now that the company will soon be absorbed into the wonderful world of HUD.
 |
| Redwood Shores model |
Nationwide has always focused on the single family market and has been quite successful in it. It will have to be seen if they can continue to target this market now that the company will soon be absorbed into the wonderful world of HUD.
Thursday, June 2, 2011
WHY DO MODULAR FACTORIES SELL THROUGH DEALERS?
Why do factories use a network of builders to sell their homes? Why can't the new home buyer purchase a home directly from the factory? Why don't factories stand behind their builders and fix anything that goes wrong with the house after the home owner moves in?
I've received a lot of emails over the past couple of years from people that want to buy a modular home asking these questions and more. I try to answer each of them individually and over time I've become email friends with some of them. They tell me about their experiences which are mostly positive. But the questions keep coming in about how modular factories do business. So let's take a couple of minutes and answer some of these questions.
Why do modular factories use a network of builders/dealers? There are several good reasons that the vast majority of factories use them. First, the factory can cover a large geographical area that includes dozens of states, each with their own set of building standards. Seismic construction needed here, hurricane building systems there, tornado protection, CO detection, automatic shutoffs and other things needed elsewhere. Who is in the best position to know all these rules and regulations better than local home builders that have been selling and building houses in those areas. A factory's sales rep and the engineering staff must know a lot of codes but when it comes down to local inspectors, nobody is better than a local builder.
Another reason they use a network of builders is the same one that the auto makers have. No factory could possibly cover all that territory effectively. There are some factories out there that do sell their own homes directly to the consumer, but they find that going more than 100 miles from the factory brings into play local conditions that they aren't prepared to work with effectively. They build a good modular home but are uncomfortable turning over their modules to a builder to complete. In order for a factory to turn the profits needed today, they must employ a network of approved builders.
Many factories limit the number of builders that they allow in certain areas but this is a little confusing to prospective home buyers. Take the east coast market for example, most factories have a policy of only having one builder within a 30 mile radius. Sounds great but that means that Boston can only have one approved factory builder serving about 625,000 people while Philadelphia, with a population of 1,625,000 can only have one builder also. The idea that one builder can cover an entire city is ridiculous. That's why the car makers have dealers in every local population hub. This is a discussion for another time.
Why can't the new home buyer purchase a home directly from the factory?
Again, factories can't be expected to have the expertise or time needed to work directly every prospect knowing that they can't convert every lead into a sale. Their expense for not closing sales would have to be added to every home that did close. This is lost opportunity cost and must be recouped somehow. In most cases, it is best for the buyer to work with a local modular home builder/dealer. One big exception to that is when the customer is buying an extremely large and complicated home or it's a large commercial project. Then the factory usually wants more control of it.
Why don't factories stand behind their builders and fix anything that goes wrong with the house after the home owner moves in? Unlike car dealers that deliver a finished product to the end consumer through their dealer network, the modular factory can only deliver about 70-90% of the home that sets above the foundation and the rest is completed by the local builder. Factories have little or no control over the final steps to completion but do stand behind what they produce with warranties and service departments.
Mistakes do happen and there isn't a factory out there that won't do everything they can to make it right for the home owner. But when the problem is something that the builder did or failed to do, then the factory must take a hands off approach or the factory could be dragged into something they had no control over. That is why factories have such strict requirements as to who can buy from them.
The bottom line to this is that a factory needs a strong and loyal builder network to service the home owner.
I've received a lot of emails over the past couple of years from people that want to buy a modular home asking these questions and more. I try to answer each of them individually and over time I've become email friends with some of them. They tell me about their experiences which are mostly positive. But the questions keep coming in about how modular factories do business. So let's take a couple of minutes and answer some of these questions.
Why do modular factories use a network of builders/dealers? There are several good reasons that the vast majority of factories use them. First, the factory can cover a large geographical area that includes dozens of states, each with their own set of building standards. Seismic construction needed here, hurricane building systems there, tornado protection, CO detection, automatic shutoffs and other things needed elsewhere. Who is in the best position to know all these rules and regulations better than local home builders that have been selling and building houses in those areas. A factory's sales rep and the engineering staff must know a lot of codes but when it comes down to local inspectors, nobody is better than a local builder.
Another reason they use a network of builders is the same one that the auto makers have. No factory could possibly cover all that territory effectively. There are some factories out there that do sell their own homes directly to the consumer, but they find that going more than 100 miles from the factory brings into play local conditions that they aren't prepared to work with effectively. They build a good modular home but are uncomfortable turning over their modules to a builder to complete. In order for a factory to turn the profits needed today, they must employ a network of approved builders.
Many factories limit the number of builders that they allow in certain areas but this is a little confusing to prospective home buyers. Take the east coast market for example, most factories have a policy of only having one builder within a 30 mile radius. Sounds great but that means that Boston can only have one approved factory builder serving about 625,000 people while Philadelphia, with a population of 1,625,000 can only have one builder also. The idea that one builder can cover an entire city is ridiculous. That's why the car makers have dealers in every local population hub. This is a discussion for another time.
Why can't the new home buyer purchase a home directly from the factory?
Again, factories can't be expected to have the expertise or time needed to work directly every prospect knowing that they can't convert every lead into a sale. Their expense for not closing sales would have to be added to every home that did close. This is lost opportunity cost and must be recouped somehow. In most cases, it is best for the buyer to work with a local modular home builder/dealer. One big exception to that is when the customer is buying an extremely large and complicated home or it's a large commercial project. Then the factory usually wants more control of it.
Why don't factories stand behind their builders and fix anything that goes wrong with the house after the home owner moves in? Unlike car dealers that deliver a finished product to the end consumer through their dealer network, the modular factory can only deliver about 70-90% of the home that sets above the foundation and the rest is completed by the local builder. Factories have little or no control over the final steps to completion but do stand behind what they produce with warranties and service departments.
Mistakes do happen and there isn't a factory out there that won't do everything they can to make it right for the home owner. But when the problem is something that the builder did or failed to do, then the factory must take a hands off approach or the factory could be dragged into something they had no control over. That is why factories have such strict requirements as to who can buy from them.
The bottom line to this is that a factory needs a strong and loyal builder network to service the home owner.
Subscribe to:
Posts (Atom)