Investing in a home is a major accomplishment. But the type of home and where it’s located can make a huge difference in the long-term value of that investment.
Do Modular Homes Gain Equity?
The short and simple answer is yes. Although the rate at which they do so is much slower than that of a traditional house.
Certain factors influence the amount of value and the increase or reduction rate of that value over time.
The primary aspect, location, is the central element for all the other factors that boost or flatten a home’s equity.
- The local housing market
- The surrounding community
- Availability and cost of other sites closeby
- inflation if the local and national economy
How Do Modular Homes Gain Equity?
Although those cannot be altered in a short time by any one person or even a family, there are ways to ensure equity will be gained by the home before its placed on a site. Here are some smart ways to invest in the increase of a home before it ever arrives at the site.
- A foundation to set or fix the home permanently to the site
- Explore the upgrade options offered by the manufacturer
- Plan an aggressive budget to pay off the principal loan amount as quickly as possible
Gaining Equity with Upgrades and Improvements
Once the home is securely and permanently set at the site location, there are many renovation possibilities that will further boost the equity of the modular home.
These home improvement projects are inclusive of both interior and exterior of the home and range from small and simple to major reconstruction.
If the goal of renovating the home is to add value then it’s important to note that the quality of workmanship put into each upgrade is paramount.
So even if a couple of homeowners believe that a project is easy enough for them to accomplish, the end result must be professionally sound before that project will have any bearing on the increase of equity.
Exterior Home Improvements
Where curb appeal is concerned, the work done to the outside of a home and the land where its set, including maintenance, has a great deal of influence on the value of the property. Curb appeal influences equity and value a lot.
Simple Exterior Enhancements
For the sake of this article, “simple” implies that these projects can be handled by most homeowners without the need to hire contractors and crews.
Remember that the quality of the work is incredibly important, though, and should be prioritized along with the budget for taking on any home improvements.
- a fresh couple of paint coats in an attractive color
- creating spaces around the home for flower beds, gardens and/or shrubbery
- upgrading the outside doors
- installing shutters
- installing quality gutters
Major Exterior Enhancements
Just as simple as explained in context here to imply potentially DIY projects before, major projects are those that will likely require a licensed and highly skilled professional to accomplish correctly.
If these home improvements are done appropriately and effectively, they stand to raise the equity of a modular home significantly.
- Replacing the skirting or underpinning
- Raising or replacing the roof
- Install new siding
- Build a porch or deck onto the home
- Adding a carport or garage
- Installing awnings
- Pouring a cement driveway
- Installing pop-outs, expansions, add-ons and other additions to increase square footage of the home
These projects will definitely need a skilled and expert hand to accomplish. They are excellent ways that a modular home can build equity more quickly.
- Install insulation
- Repair or replace the floors
- Plumbing upgrades
- Ventilate the attic
- Replace the windows.
- Energy-efficient upgrades
Although these improvements have no impact on curb appeal, there is still a great deal of appreciation value for upgrades made inside a home. That applies to a factory-built home just as much as it does to any other residence.
The importance of quality work, however, cannot be overemphasized, especially if the efforts are to increase value. Poor quality workmanship will inevitably have one of two results every time.
First, the work will have to be redone by an actual professional in the field of expertise relating to the project and homeowners will have to invest more funds into that job.
Or possibly the financial limit has been maxed out and the homeowners are left with the project in poor quality, which will decrease the value of their home.
Major Interior Enhancements
These projects will take a significant commitment of both time and money. But the results are rewarding as they increase the home’s value and enjoyability.
- Installing new cabinets
- Upgrading sinks, showers, bathtubs and toilets
- New interior doors
- Crown and shoe molding
- Hanging sheetrock
- New appliances throughout the home
- Expanding closets or rooms
Simple Interior Enhancements
These are some of the finishing touches to allow modular homeowners to say “Yes,” when they’re asked, “Do modular homes gain equity?” Plus almost anyone can accomplish most of these projects easily.
- Install closet and storage organization systems
- Change out the light switches and outlet covers
- Replace drawer pulls and cabinet handles and knobs
- Upgrade light fixtures
- Replace faucets, handles and shower heads
- Upgrade the flooring
- Apply fresh paint
Additional Ways to Add Value
Outside of renovations and upgrades, there are a few things that can increase the value of a modular home. These methods can be more confusing, though, and overwhelming in the process.
- HUD Certification
- Upgrading the home’s classification
Also keeping the home and land well maintained and in the best possible condition will help prevent possible depreciation. In terms of value, the property is a whole, rather than the land and home being separated, so keeping both in good condition is important.
There may be quite a lot of work to be done in order for modular homes to appreciate in value over time. It’s often well worth the effort, however.
The idea that modular homes cannot appreciate in value is a thing of the past. Today, the fact is that with some improvements, modular homes in fact do gain equity.