DROP AND SET - BUYER BEWARE!

Joe and Betty are caught in a dilemma, they have enough money to build the house they've always dreamed about but with the recession, they are trying to conserve money.  One way they've found is to buy a modular home.

They figure they can do the rest since the "industry" has been telling the consumer that 85-90% of their home is complete in the factory.  Sounds great to them and they look around locally, they find that the authorized dealer/builder wants to turnkey the house.  After Googling for modular homes on the Internet however, they decide they are going to buy a home from a dealer that promises great prices and fast turnaround time.  Having the dealer order the house and set it on the foundation and weather sealed is called a "Drop and Set".  You are your own General Contractor!

After checking out the dealer and finding that they sell homes from several of the biggest modular manufacturers in the country, they begin the process of buying a new home from them.  Everything goes well during the preliminary stages through to signed contract.  The dealer accepts their deposit and orders the stamped home plans.  Meanwhile Joe and Betty finalize their construction loan and get bids on the foundation and excavation since the dealer is several states away. 

The house arrives after the foundation is in, the loan is complete and all building permits have been issued.  This is a great day and everything is going just like the dealer said it would.  There is a representative from the dealer on site to meet the trucks and go through each module to make sure all the "ship loose" material is there, nothing is missing and that all the options were installed.  Still everything looks great.

Joe and Betty are ready to start completing their new home.

The dealer has offered to answer any question they have about completing the home and has even given them a guide to completing and finishing the home.  But no matter how much the dealer, who is several states away, tries to help, things go wrong and Joe and Betty are on the phone a lot.
Starting with interior, the plumber came in to connect all the modules together and install the water lines and toilets.  They also changed out some of the faucets.  First problem...the DWV pipes can't be connected without cutting through some of the joists and if they leave and have to come back later after the factory sends someone to fix them, they won't be back for a month...they have other jobs!  So they call the dealer who calls the factory and FINALLY gets the OK to have the plumbers fix the pipes.  Now the plumbers drop one of the toilets and break it.  Joe and Betty call the dealer again.  This time they tell the dealer that it was broken during shipment.  Since the dealer had somebody check it when it was delivered, this issue turns into a major confrontation because the plumber said "it was like that when I opened the box". 

Then the electrician moves in and Joe and Betty want him to add more lights to some of the rooms.  While walking across the joists in the attic, his foot breaks though the ceiling and damages the sheetrock.  Again, Joe and Betty call the dealer but he tells them that they didn't hire the electrician, Joe and Betty did.  Suck it up!
After these "minor" problems, the drywaller moves in and starts doing his thing.  It's a nice day and he wants all the mud to dry overnight so he leaves the windows open slightly and you guessed it....rain!   And did I forget to tell you, the carpet was factory installed!  By the time the dry wall was finished and the trimmer and painters completed their work, more problems arose.  Add the problems from the siding crew who said there was not enough siding and you've got Joe and Betty on the phone to the dealer just about every day.  The factory is getting calls about siding, mold in the rooms, water damage from leaking water lines and much more.  Most of these items are NOT THE FACTORY'S FAULT!  They are the subcontractors fault, which normally would be handled by the modular home BUILDER, who in this case is NOT the dealer, but rather Joe and Betty!

I've seen "Drop and Set" houses turn into disasters with the homeowners never moving into the home.  Lawsuits are started against the dealer and the factory.  And every time something new happens, Joe and Betty tell everybody what shoddy workmanship the factory did. 

Modular homes are prime for this type of "dealer"  Drop and Set.  A lot of manufacturers say that they don't allow this type of home sale, but when there's a recession on and people try to save money any way they can, are the modular home companies turning a blind eye?

If you are a buyer, you should go with a local builder/dealer who actually does the work and is responsible for giving you a finished and complete home.  Remember, if you do your own home finishing, YOU ARE RESPONSIBLE FOR THE PROBLEMS CREATED BY YOUR SUBCONTRACTORS, NOT THE FACTORY OR THE DEALER!