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Your Inside Man: Blogs from behind the scenes of Manufactured Housing

Welcome home buyers, homeowners, home dreamers, and general seekers of factory-fresh knowledge! You’ve found YOUR INSIDE MAN: A secret portal into the heart of manufactured housing.

How to avoid the Price Stylist: 5 Questions to Ask Besides “Price”

Have you ever heard of the term, “Food Stylist?” That’s a person who makes the pictures of meals on a menu look much more appealing than the actual meals you’re served. Well, in the manufactured home industry, you’ll find something similar…Dealers I like to call, “Price Stylists.“

Price Stylists know the #1 question customers have, and what gets them in the door, is price. So they’ve devised ways of polishing their prices to make them look oh-so appetizing…until you actually sit down and see you’re getting.

Y’see, when most people refer to the price of a home, it’s in terms of traditional, site-built pricing: the price of a completed project, ready to move in. And they assume that when they ask for a price, this is what they’ll get in response.

The Price Stylist uses this assumption to his advantage and presents a stripped out price to the consumer to draw them in. Their prices often exclude basic services such as Delivery from the Factory, Foundations, or Warranties. Without a clear understanding of the ins & outs of the manufactured home industry it is easy to fall prey to these Price Stylists.

Knowing the right questions to ask will allow you to compare homes on a level playing field and avoid Dealers that can leave a bad taste in your mouth.

Here are my Top 5 Questions you should be asking
(besides Price):

1- Is the price “All-Inclusive?”

2- Where’s the Factory?

3- What are your Dealer & Factory CSI scores?

4- What kind of Warranty is included?

5- Is the best Price the best Value?

1- Is the price “All-Inclusive?”

In a Food Stylist’s poster, you might see a photo of a hamburger surrounded by extra juicy toppings, a side of golden-brown fries, and a cool, refreshing soda. Then the word, “Hamburger” and a low price. But when you order the burger, you just get a slab of meat on a bun. The “Price Stylist” uses this trick, too when he quotes F.O.B. (Freight On Board or Free on Board) pricing.

“F.O.B.” pricing is deceptive since it’s only the cost of the pre-built home sections at the Factory, without any delivery or set-up. So, “technically” it’s the price of a home, but in order to set it up and move in, it will cost a lot more.

This is like ordering a burger at a sit-down restaurant and finding out it doesn’t come completely assembled, that nobody will bring it to your table when it’s ready, it has no toppings, you have to provide your own condiments, and you don’t even get a plate! Oh! But it’s cheap!!

F.O.B. pricing does NOT include:

1- Shipping/delivery of the home sections to your site.
2- Assembly of home sections.
3- A foundation for the home.
4- Set-up of basic services & utilities.

So, unless your minivan can haul a 5-7 ton home section and you’ve got the tools & training to properly set-up a home on your land, you’re going to be paying much more than the advertised F.O.B. price.

Don’t fall for F.O.B. quotes, ask for an “All-Inclusive” price. An All-Inclusive price factors in the average costs of everything involved in your home project. From getting the home built at the Factory to delivering it to your land, setting it up, permitting it, attaching utilities…the works.

Most reputable Dealers have an average All-Inclusive price already worked out for their available homes. To get your actual All-Inclusive price you will have to sit down with a Building Consultant and get into the specifics of your project. But for a good starting number, and something you can use to compare products & services on a level playing field, the average All-Inclusive price is what you need.

2- Where’s the Factory?

Just like the classic fast-food campaign, “Where’s the Beef?,” it’s important to know the quality of the product or service you’re getting. A price, alone, does not tell you if you’re working with a Local or Out of State manufacturer…but it can make a whopper of a difference in the service you receive!

Local Factories, ones within the same state or region, often provide a Quality Care Service. This is a partnership between the Factory and the Local Dealer, where the Factory has a dedicated crew who inspects each new home on-site and provides Factory Repairs.

This means a Factory Representative will be there to inspect the work of the local Dealer and ensure it meets or exceeds Factory standards. They also provide finish work inside the home, inspect & repair as needed, and do a complete walk-through with the customer before handing over the keys. If there are any issues with the home, they are addressed to the customer’s satisfaction so the buyer moves into a defect-free home.

Conversely, the further away the Factory is, the less responsive their Quality Care becomes, if any.

Out of state manufacturers do not have Factory representatives on-site, so the final walk-through is done by the Dealer, who then reports any defects to the Factory. If there are issues the Factory needs to attend to, they are not addressed until there is enough work in your area to make the trip convenient for the Factory. Easily 2-3 months may go by before work is scheduled on an out of state home.

So, make sure you get prompt Quality Care Service…ask where the Factory is and how they handle Quality Care.

3- What are your Dealer & Factory CSI (Customer Satisfaction Index) scores?

Hiding behind the facade of the Price Stylist’s lowball prices is an even more important number: the CSI Score.

Reputable Dealers regularly employ the use of unbiased 3^rd party agencies to gauge customer satisfaction. These agencies conduct surveys with past customers and gather feedback on both the Factory and the Dealer. This feedback is represented by a CSI score; a sliding performance scale from 0 to 100. A score of 80 is considered acceptable and gets better as the number goes up.

Be wary if your Dealer does not have or subscribe to a CSI Score. There may be a reason they don’t!

To get an unbiased opinion of your Dealer and their Factory, ask for a CSI score.

4- What kind of warranty is included with the price?

Price Stylists have worked hard to find ways of stripping down homes to make their prices look better. An easy, and oft-overlooked, method of doing this is by skimping on the Warranty.

Many buyers assume all warranties are the same, but they actually vary greatly. It’s important to ask which kind is included with the price, because, while a “10 year Structural Warranty” sounds like an incredible value on the surface…“Comes with a 10 Year Warranty!”…when you find out it doesn’t cover cosmetics, appliances, or plumbing, you can be stuck with a hefty bill if something goes awry. Here are the 3 basic warranties you’ll need to ask about for manufactured homes:

1. Structural Warranties

2. All-Inclusive Warranties

3. Limited Warranties

First off: the Structural Warranty. Every manufactured home in California requires a Structural Warranty to cover the chassis, floor, roof and frame. These are typically 5 or 10 year warranties but, as highlighted above, they only cover very specific structural defects. Cosmetics, plumbing, appliances, and the like are not covered by the Structural Warranty. You’ll typically find these items covered in the following 2 types: “All-Inclusive Warranties” or “Limited Warranties.”

All-Inclusive Warranties provide “FULL” coverage of your home, appliances, etc for the specified time of the warranty (usually 12-15 months.) These include a Structural Warranty and are good from the date they are issued (normally at move-in) no matter the age or construction date of your home. Many Dealers also offer extensions on these warranties of up to 7 or more years for a nominal fee or include an extension as a signing incentive/promotion.

Limited Warranties are often issued separate from a Structural Warranty and only cover specific items or issues with a home. In addition, these claims are often “pro-rated” as opposed to fully covered. Pro-rating means they only cover a percentage of repair & replacement costs, and the percentage drops as the home ages. Also, Limited Warranties often only cover certain items for a limited amount of time before coverage lapses or becomes pro-rated.

For example: a 12 month Limited Warranty may only cover the trim inside the home for the first 15 days after move-in. If a defect is not reported until 30 days in, it will not be covered or only a small portion will be. The homeowner will have to pay a percentage to replace or repair it.

To ensure you get a beefy warranty, ask for an All-Inclusive Warranty with Full Coverage and make sure it’s good for at least 15 months to 3 years.

5- Is the best Price the best Value?

This question is actually for yourself and the Price Stylist is hoping you won’t ask it!

If you don’t mind buying a stripped down version of a home, with little to no warranty, unresponsive service, and you plan to do all the site work yourself, then, by all means, shop strictly by price.

But if you are looking for the best ‘VALUE” in a new home, consider what’s included in the construction. Compare more than just the floor plan, compare the materials, the Dealers’ experience, and the Factory’s reputation & response time.

Look for upgrades that are included in the price, such as raised panel doors, 36″ doorway widths, perimeter heating, or rounded sheetrock corners. These are values in a home that go way beyond price.

Ask yourself what YOU value most and you just may find that Price isn’t the only thing that matters.

I hope these 5 questions help you make a more satisfying decision, and they’re sure to help you see through any Price Stylist’s tricks! As always, if you have further questions, you should speak with a local Building Consultant at a display center near you. Til next time…

Good luck, and happy home building!

- Your Inside Man

Your Inside Man has more tips and tricks in store! Check back soon for a new glimpse behind the curtain of Manufactured Housing. If you have comments or suggestions, please send them via the contact page at www.cousingaryhomes.com. Just mention Your Inside Man in the comment box.

Your Inside Man: Blogs from behind the scenes of Manufactured Housing

Welcome home buyers, homeowners, home dreamers, and general seekers of factory-fresh knowledge! You’ve found YOUR INSIDE MAN: A secret portal into the heart of manufactured housing. In this blog I pull back the curtain of mystery surrounding all things manufactured & mobile home and (with the help of even more insiders) share decades’ worth of experience, advice, & insider tricks to give you the edge as a buyer and homeowner!

Fear not! For in your quest of manufactured housing knowledge…you’ve got an Inside Man!

5 Things You Need to Know Before Building a Granny Unit

Today’s topic is a hot one in the industry right now…Granny Units. With the housing market in its current state, many empty nesters are looking for ways to downsize their living situation while low & middle income families are looking to pool their resources; having in-laws or children move in together in an effort to save money. A popular solution for this is often a Granny Unit!

Before I even get into my tips, you need to know the term, “Granny Unit,” is a bit of a misnomer. You don’t have to be a senior citizen to live in one, nor to build one. A more appropriate term, and the one most Counties use, would be: “Family Care Unit.” But they are also referred to as “Secondary Suites,” “In-Law Units,” or “Backyard Residences.”

Regardless of the name, Granny Units are commonly single section, temporary homes, without a foundation. The units hook into the primary residence’s existing utilities and septic. The home requires a special use permit issued from the County and, often, approval by a building committee and/or neighbors. The permit must typically be renewed every 1 or 2 years.

Manufactured and mobile homes are popular options for these units as they offer the quality and amenities of a traditional, permanent residence but are quicker to build, priced more affordably and (most important) portable.

While Granny Units seem like a simple solution on the outside, there are varying restrictions, County by County, which the buyer needs to be aware of. Knowing the inside scoop before you build can increase your chances for a smooth & successful project.

Here are my Top 5 Things you NEED to know:

1- Granny Units are considered “personal property,” not real estate.

Since Granny Units are a temporary addition to the property they have a lower permit fee than a permanent residence. Also, because the unit will be removed once it’s no longer occupied, it is taxed separately from your primary residence & property. This means you will not have your property reassessed or your property tax adjusted. As personal property, a Granny Unit does not affect an existing home’s property value.

2- Every County has their own restrictions & requirements governing Granny Units.

This is where your Building Consultant really earns their keep! There is no uniform permit process or requirements for Granny Units. Each County has their own guidelines, so it’s important to partner with a local Building Consultant who is familiar with those rules.

For example:

• In Shasta County Granny Units are strictly limited to family members with a medical need. These require a letter from a qualified Doctor explaining why the housing situation is necessary.
• In neighboring Tehama County you may build a Granny Unit for any purpose you’d like, without a Doctor’s approval, but the home cannot to exceed 1200 sq ft.
• In Butte County, depending on the size of your existing property & home, you may be able to build a Family Care Unit or a Secondary Residence.
• In Sacramento County units are limited to medical needs only and require notes from 2 separate, qualified Doctors.

As you can see, even in this small sampling of Counties there are widely varying restrictions.

To find out what the restrictions are in your area, talk to a knowledgeable Building Consultant at your local manufactured home dealership. They have the experience of going through the process and won’t bog you down with all the legal mumbo-jumbo you have to sift through on a County website. And best of all, their advice is FREE!

3- In some cases you CAN extend a permit after the occupant moves or passes on.

A permit for each Granny Unit is issued to the family member who is occupying the home. Once they no longer reside there, the home is typically re-sold and removed from the property. But homeowners have a few other options that are often overlooked:

• If the homeowner has another family member that qualifies for a family care unit (with a Dr.’s note or committee approval) then it can be renewed in their name and occupied by the new family member.

• In some cases the Granny Unit can be retrofit with a foundation and made into the new primary residence once the previously existing home is torn down or removed.

• In some counties the unit can be converted into a legal second residence on the property and used as a guest house.

If you’re planning on extending the use of your Granny Unit, check your options with your Building Consultant before you build.

4- Granny Units cannot be used as rental properties.

A common misconception is that homeowners can simply rent out their Granny Unit as a 2^nd form of income once it’s no longer occupied. This practice is illegal in many areas and some counties have dedicated inspectors routinely check units to prevent such abuse, as it commonly leads to overtaxed City resources and neighborhood complaints.

Granny Units are intended as temporary homes and, with the few exceptions mentioned above, must be removed once the occupant moves or passes on.

If a homeowner wishes to build a rental unit on their property, they will have to get it permitted and approved as a legal, permanent 2^nd residence and there are often completely different & more stringent requirements for such a project.

5- Adding options up-front can help in re-selling the home later.

Before you build a Granny Unit, ask yourself, “What will I do with this home once it’s served its purpose?”

If you plan to put the home up for resale or consignment, I always suggest ordering the home with a higher snow load rating so it can be marketed to buyers out of the area. Other options, such as ADA (Americans with Disabilities Act) Approved bathroom features and upgraded kitchens also make a big difference once it hits the resale market.

If you’re planning to turn the unit into your new permanent residence afterward, be sure it has all the amenities you will want in it when you order. You don’t want to pay more for granite counters AFTER the home’s built when they could be included in the original cost at factory direct prices.

Ask your Building Consultant about common additions that help homes sell faster in your area so you don’t get caught paying more in the end or having to sell for less.

With these tips in mind you can avoid many of the obstacles homeowners commonly face when building a Granny Unit.

As always, if you have further questions, you should speak with a local Building Consultant at a display center near you. It also helps to have your Assessor’s Parcel Number handy (located on your most recent property tax bill) so they can look up the specific County requirements for your property.

Good luck, and happy home building!

- Your Inside Man

Your Inside Man has more tips and tricks in store! Check back every month for a new glimpse behind the curtain of Manufactured Housing. If you have comments or suggestions, please send them via the contact page at www.cousingaryhomes.com. Just mention Your Inside Man in the comment box.

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Cousin Gary Homes |

Now presenting the 4th video in our series of extended interviews with Cousin Gary Home owners.

In this interview, Gino & JoAnn Martin recount their experience of “flipping” their existing home in Susanville, CA into a brand new, customized Cousin Gary Home. In addition, they talk about their shopping experience and how they hired their own contractor to look over the homes before purchasing, plus how easy and affordable it was to make changes to the original floor plan.

It’s official!

The $8,000 Federal Housing Tax Credit for 1st time homebuyers has been extended to April 30th, 2010 and the program has been expanded to offer a credit of $6,500 to other homeowners who have lived in their current home for at least 5 years and wish to relocate!

Income limits on the program have also been raised from $75,000 for a single purchaser to $125,000 and from $125,000 to $250,000 for couples.

This means more families than ever can qualify for the Tax Credit and finally afford the home of their dreams!

If you’ve been waiting for the right time to buy, this is it. Come in today and find out more about the Federal Tax Credit available to you and see how easy and affordable it is to build a new Cousin Gary Home.

*source: www.federalhousingtaxcredit.com

Now presenting the 3rd video in our series of extended interviews with Cousin Gary Home owners.

In this interview, George & Patty Bullard recount their experience of buying a display model home and placing it on their property in Cottonwood, CA. In addition, they talk about the difference between their new Cousin Gary home and their previous “trailer” home and compare their experience in shopping the competition versus how they were treated at Cousin Gary Homes .

This video is the second in our series of extended interviews with Cousin Gary Home owners.

In this interview, Red & Betty Muhlemen recount their experience of building their home in a senior park near Redding, CA and tell how Cousin Gary saved them 40% vs site-built construction.

Sometimes 30 seconds just isn’t enough. When we recently interviewed Cousin Gary Home owners for a local TV spot, we had a lot of great stories and insights that wound up on the cutting room floor due to time constraints. So we decided to edit together a few “Director’s Cut” versions of the testimonials and share them with you, here.

The first of our series is an extended interview with Cousin Gary Home owners, Tom & Sandee Dillon.

Tom & Sandee recount their experience of building their home near Yreka, CA while still living in the Bay Area, and how Cousin Gary Homes made it simple.

Skyline Homes and Cousin Gary Homes are proud to introduce a brand new, value packed 3 Bedroom, 2 Bath model: The Solara!

The Solara is the first of a “next generation” of manufactured homes, aimed at value conscious home buyers who demand high quality craftsmanship, elegant amenities, and an affordable price. And the Solara is now available for Factory-Direct orders with low introductory pricing!

Express your sense of style and preference for quality with these distinguished features which come standard with every Solara:

• Signature Kitchen with elegant granite countertop and stylish built-in GE appliances

• Artisan Hardwood Cabinetry in Beechwood or Cherry, w/raised panel doors & adjustable shelving

• Inviting Gas Fireplace in family room with designer select tile surround

• Luxurious Master Suite with corner tub and separate shower

• ENERGY STAR® Certification thoroughly inspected during factory construction and verified on-site

Right-Click here and “Save As” to download the PDF (1MB) with a complete list of amenities and floor plan. (requires Adobe Acrobat Reader)

For upgrade options and ordering information, contact Cousin Gary Homes in Redding

Here’s our latest television commercial featuring customer testimonials.
This is the first of a series Cousin Gary Homes will be producing in the coming months. Enjoy!

And if you have your own testimonial, click CONTACT US and tell us your story.

Who knows, we may send a camera crew to your home next!!

On February 17, 2009, President Obama signed legislation that revises a Tax Credit for First Time Homebuyers. This tax credit is available on qualified home purchases from January 1, 2009 thru December 1st, 2009. This includes new and previously owned manufactured homes, modulars, mobile homes and park models.

We’ve gathered a few frequently asked questions on the Tax Credit below. If you have additional questions, please contact us today!.

1. What is the First time Home Buyer Tax Credit?

• A federal refundable income tax credit.

2. How much is the tax credit?

• 10% of the home’s purchase price, up to $8,000.00.

3. What is the definition of a First Time Home Buyer?

• A buyer who has not owned a principal residence during the three year period prior to the purchase of a home. If you are married, neither you nor your spouse may have owned a principal residence during the prior three years to qualify as first-time buyers.

4. What type of homes qualify for the tax credit?

• Any new or resale home purchased by an eligible first-time home buyer, provided that the home will be used as a principal residence. The home can be a manufactured home, a modular home, and be real or personal property. Second homes and investment properties do not qualify.

5. Are there time limits to be eligible for the tax credit?

• Yes. You must purchase a home on or after January 1, 2009 and before December 1, 2009.

6. Are there income limits to determine who is eligible to take the tax credit?

• Yes. Modified Adjusted Gross Income (MAGI) of up to $75,000 for single or head-of-household buyers and $150,000 for joint taxpayers. A lower, partial credit is available to buyers with higher incomes.

7. What is a “Refundable Tax Credit”?

• Refundable means the tax credit may be claimed by an eligible taxpayer even if you have little or no federal income tax due. Should that be the case, the IRS will issue a check to the home buyer for the difference between the tax due and the amount of the tax credit.

8. Does the tax credit have to be paid back to the government?

• There will be no repayment for purchases on or after January 1, 2009 and before December 1, 2009, provided the home is not sold for three years.

9. I heard there is a “recapture” feature in the provision. What does that mean?

• If the home is sold within three years of purchase, you will lose your tax credit eligibility and the entire amount of the credit will be recaptured (or “repaid” to the IRS) upon sale of the home.

10. Is the credit available for buyers with government sponsored downpayment assistance?

• Yes!

The information contained herein does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisors. Before making any decision or taking any action on this information, you should consult a qualified professional to whom you have provided all of the facts applicable to your individual situation or question. None of the tax information herein is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided “as is”, with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.