How to buy a home on a great lot in close-in SE Portland for $400,000.

For so many people who have lived in rentals on Portland’s East side, the dream of owning a first home within walking distance to the parks and restaurants they frequent is a big one. Unfortunately with the accelerated appreciation of home prices over the last decade, it’s become almost impossible to purchase a single family home on a nice lot if your budget is around $400,000. The strategy in this price point usually involves giving something up and forgoing either the close-in location, the yard, the autonomy of a detached home, or the overall condition of the home, i.e. buying a fixer-upper.

For Ben and Sara, compromise wasn’t needed as they were able to find a diamond in the rough and purchase a brand new manufactured home with some nice upgrades on a large quiet lot in the Brentwood Darlington neighborhood near Woodstock.

This particular property was listed by a developer who had purchased the home that previously sat on the lot with the intention of flipping it, but as the scope of work seemed too great, they decided to completely remove the previous structure and replace it with a brand new home. With the recent inflated construction costs, the Seller was able to utilize the benefits of a manufactured home which allowed them to keep costs down and add a few upgrades like the beautiful carport and driveway that could eventually be closed in to create a bonus den or studio.

There are a lot of misconceptions about manufactured homes such as “they are classed as vehicles” or “they won’t appraise” but in this case, we had zero issues with the appraisal and after a thorough inspection, the property proved to be just as solid as many “stick built” homes that we see in this and higher price points.

What Is a Manufactured Home?

Manufactured homes are houses built in a factory rather than on the land where you’ll live. They are constructed using the same building materials as site-built homes but generally take only two to three months to complete, compared to an average of seven to eight months for a site-built home.* Manufactured homes are more affordable because of the efficiency of the factory building process, which lowers costs.

To make sure that manufactured homes are safe, strong and durable, they are built under controlled conditions and inspected to meet or exceed standards set out by the U.S. Department of Housing and Urban Development’s (HUD) Manufactured Housing Construction and Safety Standards, commonly known as the HUD Code. The safety standards include:

• Design and construction.
• Strength and durability.
• Fire resistance.
• Heating, plumbing and air conditioning.
• Thermal and electrical systems.
• Energy efficiency.
• Overall home quality.

With the HUD Code seal of approval, manufactured homes automatically meet regional standards for roof load, wind resistance, thermal efficiency, safety and durability, meaning they’re not any more vulnerable to storm, hurricane or tornado damage than a site-built home.

Manufactured homes are built on a permanent, non-removable steel frame (chassis). They aren’t trailers or mobile homes, which are built on wheels. You can install your manufactured home on vacant land that you own or lease, or in a manufactured housing community.

The Benefits of Purchasing a Manufactured Home

There are several advantages to buying a manufactured home.

Manufactured homes are affordable. The average price of a new manufactured home in August 2021 was $80,000, versus $390,900 for a new site-built home.

Manufactured homes are versatile. Because you have the flexibility to add manufactured modules to your home later, you can start out with a smaller home footprint and expand your living space if your situation changes — if you’re getting married or starting a family, for example.

Manufactured homes are energy efficient. The HUD Code ensures that manufactured homes achieve a prescribed level of energy efficiency, which can save you money on your monthly utility bills. Manufactured homes are required to have insulation within the walls and under the home around its base, energy-efficient windows and high-efficiency water heaters. Inside, kitchens and bathrooms have energy-saving appliances and lighting, as well as water-saving plumbing fixtures and faucets.

Another consideration is the long-term value of manufactured homes. According to the Federal Housing Finance Agency house price index, a manufactured home appreciates in value similar to a site-built home.

With all of these benefits of a manufactured home, it is a good option to keep in our tool belts for first time homebuyers looking to find an affordable option in a great location.

Just in the last two years, there were over 30 manufactured homes sold for under $550,000 in the Greater Portland area and the average sold price of these single family homes was only $365,000. They tend to be around 1,500 square feet in size.

“But aren’t they ugly?”

Another misconception about manufactured homes is they look cheap or unattractive on the interior or exterior but these pics demonstrate that a manufactured home can be just as attractive as non manufactured homes in the same or higher price point.

When we were touring the other available home listings in this price point in the same neighborhood, many of the other options were on tiny lots, priced as much as $100,000 higher, had significant deferred maintenance or repair issues, were on busy streets or inferior locations, or had other significant issues that made them far less desirable.

Ben and Sara have now been in their new home for several months and are loving being homeowners and not paying rent or relying on landlords for anything ever again!

Congrats guys, it was a pleasure making this dream come true.

Yascha Noonberg

Principal Broker | ADU Specialist | OR

He/Him

Consistently featured as one of the Top 50 Brokers in Portland. Certified Residential Investment Specialist "Yascha is absolutely an asset, not only to his clients, but his industry as a whole as an example of how REALTORS® should strive to conduct business." —Past client VISIT MY WEBSITE  I was fortunate enough to move to Portland in the 90s after growing up in Maryland and then attending college in Texas. My professional life started with owning and operating a music school and recording studio in SE Portland. Eventually I was drawn to real estate both as an investor and subsequently as a consultant to homebuyers and sellers as well as fellow real estate investors. My family and I have lived on both sides of the river, and we spend a lot of our down time at the coast in Manzanita. My real estate business and family keep me very busy but whenever possible I get out on the courts to compete in tennis leagues and tournaments, and I recently started playing Pickleball. I also mix in the occasional gig or young audiences performance with local jazz group Trashcan Joe.

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