An updated option: Manufactured homes may be an option in tight market

MOSES LAKE — “It’s not Grandma’s trailer house anymore.”

That’s how Rudy Salazar, sales rep at Valley Quality Homes in Moses Lake, sums up the changes he’s seen in the manufactured home market.

“Our manufactured home industry has really evolved into a very, very competitive alternative to the real estate market out there. We're seeing an influx of a lot of people coming into it.”

In the 1980s and ’90s, manufactured home dealers dotted the real estate landscape, in the Basin and elsewhere. Today Valley Quality Homes, headquartered in Yakima, is one of the few still operating in the area, and the only one still located in Moses Lake.

Valley Quality Homes manufactures all its own products, Salazar said, whereas many dealers merely buy and sell homes built by other manufacturers. Salazar believes the difference in construction standards is one of the reasons for the lower presence.

“A lot of times when you buy a home, it's from one manufacturer, but a dealer sells it and they tell you to call the manufacturer (if there are problems),” Salazar said. “I think over the years, some other manufactured homes companies kind of fell by the wayside, basically because of quality. So that’s a big factor for most folks, because the quality of the home is definitely on the table.”

“Eighty or 90% (of home manufacturers) use chipboard flooring, and chipboard roofing or particle board,” said Valley Quality Homes manager Ray Acheson. “We use plywood flooring, we use plywood roofing. Most manufacturers have a 20-pound roof load, some might have a 30-pound roof load. Our lowest roof is 40 pounds per square foot.”

The change in quality standards has been driven largely by Washington state’s comparatively consumer-friendly regulations. Dealers in other states aren’t bound to those same standards, Acheson said. Consumers can order homes online from out of state and have them shipped in, Acheson said, but local manufacturers are bound to higher standards.

“Washington state is a consumer state,” Acheson said, “So, a lot of (dealers) have gone to Oregon or Salt Lake City or something like that, because those are business states. And they don't have to have quite as good protection for their clients if they're operating.”

“And what they do a lot of times is they'll have a factory down there, and they'll open up a little dealership right there ... And they have aggressive ways that they do it,” Acheson added. “They take 10% down, and then they don't really check on the (building) permit because they don't care. They just get them out there. And then you're forced to pay, where we do a lot of that stuff. We actually require a copy of the building permit before we'll even deliver the home.”

Manufactured homes are also financed in much the same way as site-built, Salazar and Acheson said.

“If you do FHA, VA, conventional, any of those - we still require 10% down,” Acheson said. “But those are a fixed rate, 30 years, they're bought by the federal government. They're part of a mainstream buying process. And then what we do is we have the title eliminated in most cases, rezoned as a single family dwelling, and the banks lend on them the same as houses.”

But what about resale value? Manufactured homes have a reputation for quick depreciation, which Acheson and Salazar said was unjustified.

“I think that was a perception back then,” said Salazar. “But I think that has vastly changed since the quality of the homes, the reputation of the homes, has increased. So has, I think, valuation on those as well.”

Acheson said the cost comparisons for building a traditional home versus a manufactured home show value for the size of the home leaning in favor of manufactured homes. He said the cost to build sometimes can outweigh the perceived value of a traditional home, anecdotally.

“So you know, you could pay a lot of builders right now charging $200 to $250 per foot where we only charge $110,” he added.

A home, site-built or manufactured, is a major investment, and getting burned can be very expensive. Salazar and Acheson offered some suggestions for folks looking into the possibility of a manufactured home.

Internet research is good, Acheson said, but it’s not a substitute for making phone calls. The state Department of Labor and Industries is a good place to start, he said, as is the Better Business Bureau. Local building officials are an excellent source of information as well, he added. He suggested consumers ask whether the dealer they’re considering follows through on promises made, and whether they keep contact with the consumer directly or merely direct them to a phone number.

“‘How long have you been in business?’ is a good question to ask,” Acheson said. “Do you have service after the sale? I mean, do you deliver?’ A lot of them don't now, especially the internet ones, they don't even include delivery. They give you like 15 names: ‘Here's some people that we think in that area might put them together or deliver them.’”

“All dealers actually are responsible for following up on service,” he added. “But a lot of them find that it's easier to tell you to call the manufacturer itself.”

Salazar said cost follows value and modern manufactured homes offered locally may seem more expensive than in the past, but it’s worth it for the peace of mind.

“These aren't really the trailer houses of yesteryear,” Salazar said. “I mean, these homes are exceptional homes, and they're basically nice looking homes that will sit on a structured form.”