Budgeting for your new Manufactured Home
You see an ad for a new manufactured home selling for $59,999 – maybe a 4 bedroom, 2 bath home. You think, “Wow, I can afford that.” Well, maybe you can, or maybe you can’t.
The price quoted does not necessarily tell you all you need to know when it comes to determining whether or not a home fits your budget requirements. The actual total consideration is determined by several factors, any of which can be a “budget buster.” Before rushing to the sales center it is suggested that you call the dealer and ask some specific questions:
Does the price quoted include normal delivery and installation? If the answer is “no” you should request a specific price that covers your home being delivered and set up on your properly prepared home site. If the answer is vague (at best), we recommend that you find a dealer who will openly give you a price that includes normal delivery and installation.
Does the price quoted include the upgrades that were displayed on the home, at the model home center? It is quite common for a dealer to quote a base price, which is the home with only the standard features. Secure a factory floor plan brochure to determine what features come standard from the factory and which are custom upgrades. Require that your salesperson quote specific price information based exactly upon the features and upgrades you are requesting.
How does your home location site impact your budgeting? Where you locate your manufactured home will have a large effect on your budgeting and will require your diligence in determining the expenses involved with your placement site. If your new home will be on private land you will need to know the expenses involved in preparing the site, prior to committing to your manufactured home purchase. Contacting a contractor to secure a bid for the site preparation will be an important element of your budgetary considerations. You will also need to acquire price quotes on site accessories that you will want, such as porches, decks, awnings, and air conditioning.
Your budgeting should also take into account the cost of homeowner’s insurance, sales tax, property tax and any other fees or assessments like developer fees or school taxes.
If you are financing your purchase you will want to include all of the expenses you have accumulated in the Total Financing Request, which you submit to your lender to determine your monthly payment requirements.
The key to purchasing the home of your dreams, and being able to afford that purchase, requires patience and diligence. Before you commit to the purchase, use the knowledge you have gained about all the costs involved to secure the best value on your home, its upgrades, its location, and financing.
When shopping for that fair and affordable price make sure you are comparing “apples to apples”. A dealer will typically match or even accept a lower price than a competitor offering the same or comparable model of home. Getting your new home for less than the price you anticipated will undoubtedly help your budgeting goals.
The enjoyment of your new manufactured home will be enhanced with the self-satisfaction that you acquired the home of your dreams at a purchase price within your budget.