What is a Pre-Built home?
A Pre-Built home, also called a Modular Home and officially known in California as "Factory Built Housing", is built in a factory to the same state and local building codes as homes built on- site. The home is then carried in sections by special trucks to the building site where a specialty "set crew" using a crane places it on a regular concrete foundation, and a local contractor finishes the home. Once it is delivered, the home is finished with architectural details built on-site so that it looks like a traditional stick-built home.
What is a SmartPanel home?
A SmartPanel home is a home built out of factory assembled structural panels. We have three types of SmartPanels: wood-framed SmartPanels (the most common), steel framed STRIP panels with integrated foam insulation, and Structural Insulated Panels (SIPs) composed of structural blocks of foam sandwiched between sheets of Oriented Strand Board (OSB) or another sheathing material. The panels are delivered to the jobsite laying flat on a truck and assembled by a set crew and a small crane until the structural shell is completed and a regular looking home appears.
Do you sell real homes; or do you sell trailers or mobile/manufactured homes?
We just sell real homes. All of our homes are built to the state building codes and the local requirements of your city or county. We don't sell any mobile homes or manufactured homes, so don't worry! These are regular homes, whether it is Pre-Built Modular or SmartPanel. The financing is the same type of financing that you get with any other home, and the home will appraise like any stick-built home on a similar lot with similar amenities.
I would like to get my home financed. What is the best way to learn more about construction financing?
You can call all of the big banks and try to get a loan set up, but they are normally poor lenders for construction loans. We have worked with plenty of lenders over the years. A lot of lenders are out of business now, but the following two companies will do a great job for you and they clearly understand what a Pre-Built or SmartPanel home is.
Jesse Ibanez, The Greenhouse Group - (888) 747-8485
http://www.greenmeansgrow.com
Jesse@GreenMeansGrow.com
Ken Raboin or Chris Tawney, Eagle Nationwide Mortgage - (866) 898-1465
http://www.factorybuiltlending.com
ken.raboin@enmcdirect.com
Once I have my lot and financing, how long does it take to build a modular home?
Building a Pre-Built Modular home will take approximately half of the construction time of on-site construction. Since the home is built in the factory concurrently with the grading and construction of the foundation, the construction schedule is sped up tremendously. SmartPanel homes are between a few weeks and a month or more faster than traditional on-site construction.
What areas do you service?
If you are looking for a single Pre-Built home, our market area is currently focused on the entire state of California exclusively. If you are looking for a SmartPanel home, we deliver anywhere in the Western US region. We do planning and consulting work with developers of modular home projects worldwide. We have four offices statewide to serve our clients: in San Diego, Corona (Inland Empire), La Mirada (LA Region), in the east Bay Area, and in Gold Country north of Sacramento. Most of the work that we do is done by email, telephone, and fax, so location is not important except when we do a route survey at your lot and when we deliver the home. We work with local general contractors that manage the jobs on-site. In areas that we do not have an available general contractor, we will find, train, and work with a new local contractor to do the on-site work.
We are confident that we can compete with any local retailer of modular or Smart Panel homes on price, and our services are more thorough and customized than our competition in California. We work under an "Open-Source" philosophy, providing free, fair, and as complete of information as we have available. We give our clients all of the information we have, tell them exactly how our competition operates and what the alternative options are, how our prices compare, and work hard every moment to ensure that our client gets the best home and work on his/her site at the lowest possible price. We fully disclose all the information we have about ourselves, the industry, and our competition because we are confident you will choose us when you have all of the facts.
What is your experience and certification to be selling these homes?
Cutting Edge Homes Inc. was founded in 2004 when our principals were looking for a more affordable way to build residential homes. After several years of developing, we wanted to speed up the construction process and reduce unknowns without sacrificing quality. Since 2004, we have been one of several companies focused on the regional distribution of modular homes in California, with a focus on the more custom buyer. We have sold homes from many of the available modular homes in California and have played a large part in the rapid growth of the modular home industry in California over the last half-decade.
All full time staff members of our company hold a certification from the Modular Housing Training Institute, a industry training and certification program that sets a best-practice benchmark for the building and setting of modular homes. We understand the market and have licensed loan brokers, real estate agents, appraisers, and a Registered Building Designer on our staff. Our staff members are primarily focused on the planning phase through ordering, delivery, and service coordination of modular homes, but we cross-train to ensure a fundamental understanding of all phases of modular construction and the building industry. We go to the major building industry trade shows and recently had our staff complete the new building code (IBC) Code Review Class.
Are there model homes that I can visit?
We have model homes throughout the state that are available to be seen by appointment. There are currently available homes in the Bay Area, Ventura County, and San Diego. All homes are by appointment only with serious buyers. We can also provide you with the locations of homes already built if you want to drive-by and will be happy to provide references. You are welcome to visit one of factories where the homes are built, and you could qualify for a $500 rebate off the price of your new home.
Will I have difficulty in getting my home permitted at the local building department?
Our factories will be happy to accommodate any concerns that the local building department has, and we often encounter building department officials that have no idea what the law is. A Cutting Edge Homes representative will contact the building department to clear up any concerns, and if there are any misunderstandings we will have the California Department of Housing and Community Development contact your local building department to inform them of their responsibilities. Regardless of what an individual at the building department may say, the stringent California state law preempts local building department permitting requirements. You will not be required to go through a complete engineering "Plan-Check" that similar site-built homes must go through or pay engineering "Plan-Check" fees, because the state of California has already performed the "Plan-Check" function during the approval process for your home. The local building department plan checks portions of the project that are done at the job-site only.
Important Notes *** If you do a custom modular home you will have to go through a state-level review of the engineering of the home. This process negates any time efficiency in the permitting process versus stick-built construction. You will still get major efficiencies in the construction process, but our experience has been that the permitting time frame is not shortened if you go through the state process and then through the local process, even if the local engineering plan-check is bypassed.
What about the re-sale value of a Pre-Built home?
Since a Pre-Built home is built to meet or exceed the same standards as a home built on site, it should appreciate at the same rate as a comparable site built home. Unlike manufactured or mobile homes, a seller of a Pre-Built home does not have to keep a state or federal insignia on the home stating that it was built in a factory. The national appraiser's guideline does not have a designation for a Pre-Built modular home versus a site-built home. Each are permanent, regular homes. The state of California considers a Pre-Built home, known legally as "Factory Built Housing," to be fundamentally the same as a home built on site. The legal department at the California Department of Real Estate (DRE) has said that if their lawyers were real estate agents in the field, they would not disclose that a home was built using modular construction methods at resale, because you only disclose negative items.
A Pre-Built modular home is simply a "Single Family Residence." Future sales of the developed property will be registered as fee-simple real estate. From a legal standpoint, the only difference between modular construction and stick-built construction is during the construction phase. At completion, each construction method renders an equal home from a legal, regulatory, insurance, and appraisal standpoint.
A home built on a more modest budget will look like a stick-built home built on a modest budget, and a home built on a large budget will look like a custom stick-built home.
How much do Pre-Built homes cost?
Our Pre-Built homes retail from between $65 - 150+ a square foot delivered, depending on the brand, model, and features. Site work, upgrades and options will be additional. Pre-Built homes generally cost 5% to 20% less than a comparable finished home built on-site in a urban or suburban area of California, but the primary benefit is in faster building costs and a better method of construction. In some rural areas, stick-built homes are so inexpensive to build that the prices may be comparable.
While our homes are normally less expensive than site-built homes, the homes will not be as cheap as a manufactured or mobile homes, as our quality standards are much higher. We typically tell our clients that if they can't afford $115-130 a square foot for their individual project, they probably cannot afford our most value conscious Pre-Built homes. Because there is no difference in appraisal guidelines or a required disclosure, there is no good reason that a modular home has to be less expensive than a site-built home. It often is especially in the more expensive areas closer to cities.
It is the industry standard not to publish detailed pricing on the web. If you would like to find out more about the pricing for our homes, Contact Us.
How much do SmartPanel Homes cost?
SmartPanel homes will be similar in cost to on-site construction, usually with a 3-5% savings. SmartPanels are structural shell panels only, and all mechanical work, drywall, interior and exterior finishing is done at the job-site. SmartPanels are typically a month or so faster to build than on-site construction and result in a high-performance home. Because there are literally no limitations to the design with SmartPanels, the cost savings and time-savings are a bonus to go along with eliminating the poor traditional framing methods used by most builders.
In lower cost areas of California, a basic SmartPanel home could cost between $100-$125 / sq. ft. In mid-price areas, SmartPanel homes will range between $125-200 / sq. ft. Higher end areas can be from $200-300+ / sq. ft. It all depends on the cost of local labor and the ease of building in a particular area.
Can I custom design my own Pre-Built home?
We work with a custom modular home factory that can design any style of home that you desire. We can adapt existing plans or work with our architects to design your dream home. We have loads of experience working with client's and their architects to design and engineer a custom modular home that is efficient, practical, and looks like it is a custom site-built home. Barvista Homes allows for plenty of customization of their plans, depending on what fits your budget. Genesis Homes does not customize its plans, and only allows standard floor-plan options like switching in a set of french doors for two windows.
Cutting Edge Homes does not act as a General Contractor on your project so that we can focus on helping you find the perfect home for your family without concern for how much we would make off of the construction of a particular floor-plan. Other competition have a vested interest in your using particular manufacturers because it will mean more profits for their construction business. We do a large volume of homes and want you to pick the the perfect home for you, regardless of the manufacturer. We plug you into the process and know-how so that you can get the best prices from lenders, contractors, and real estate agents, and so you navigate the building permit process as quickly as is possible in California.
Do I need a general contractor?
You do not necessarily need one, but most people find it smart to use one because of the complexities of the building industry in California. Imagine the amount of technical details, state laws, and local codes in any high-tech industry. Would it make sense to try to build your own computer from raw materials yourself, or to hire a company to manage the process of getting all of the components and assembling them in a professional way? Building a long-lasting home is much more complicated than building a computer from scratch. If you have a typical full-time job, it will be very difficult to find the time to manage your project as an owner-builder. There are very few cost efficiencies in contracting a job yourself because it will go slower and you will pay higher subcontractor bid prices than if you were a regular general contrator. You will also make more costly mistakes than a good contractor. If you are a contractor or developer with experience, it may make sense for you to contract the job yourself and have us provide the home delivered. We can introduce you to a certified set-up contractor that will work directly with you to provide the installation of the home.
What is included with my Pre-Built home purchase?
The Cutting Edge Homes proposal for you home includes the home, options and features that you select, delivery to your site, and applicable state sales taxes on the base price. Additional costs which are paid to our local contractors include site-related plans and engineering, grading, utilities, foundation, garage, driveway, decking, landscaping, set-up, and any other jobs that are required based on your needs or your site requirements. Permits and fees are paid to your local municipality and the state of California. All on-site construction costs will be bid directly with you by a licensed California contractor outside of the scope of our contract.
Is a warranty included with my Pre-Built home purchase?
All of our homes come with a 7-10 year structural coverage and a one or two year system's coverage from the Residential Warranty Company or a comparable warranty insurer, depending on the brand you choose.
Can Cutting Edge Homes help me find land to put my Pre-Built house on?
We work with a network of of experienced real estate professionals, including Tri-Coast Realty in San Diego, (619) 667-3377. If you are in another in part of California, contact us for a referral.
What is the cost of a particular model?
Please contact us for more information on the pricing of a specific model.
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