Soon after starting my business, I built a two-story model home with several upscale features. For example, I dressed up the first floor with oak trim and doors, all finished in clear polyurethane, so that my customers could see what this option looked like. The first customer who ordered this upgrade called me soon after we set his home, very upset. He said that some of his oak moldings had a much darker grain pattern than the others, which he felt was not the case in my model home. Without first looking at my model, I went to his house to see what made him unhappy. When I saw the variation for myself, I ordered replacement moldings. Unfortunately, the new moldings came in with as much variation as those installed in his home. Finally, after ordering three sets of replacement moldings, we were able to match all of the moldings in his house almost perfectly. (In retrospect, I cannot believe that my manufacturer provided me with all of these moldings for no additional charge.)

A couple of months later, the manager of a custom woodworking shop visited my model home. I told her about the problem with the oak moldings, and I showed her the rejected moldings. She then walked me through my model home and pointed out that it had the same “problem.” Even more surprising, she said that all of her high-end, custom stick-built customers had the same “problem” when she provided them with naturally finished wood moldings. She added that most customers actually prefer this natural variation.

In addition to teaching me about the natural qualities of wood, this experience taught me how easy it is to miss the true appearance of a home’s features. Over the years, I’ve noticed that while most customers do not look closely at our model homes, they put a microscope to their own home. And when they do, they see both real and imagined imperfections that they do not realize are typical of all homes, including their dealer’s model homes.

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Verify Your Lender’s Willingness to Let You Act as GC

by Andy Gianino on February 9, 2012

Here’s another story that seems to occur at least once a year with my company. Recently a young couple decided to act as their own GC so they could save money. They went to their favorite local lender who told them that the general-contracting work on their home had to be supervised by a professional GC. They said they understood and proceeded with their application. About a month after they applied, the loan officer asked for a copy of the GC’s insurance policy and contractor’s license, which is required in the customers’ home state. (Not surprisingly, neither of the customers had a license or contractor’s insurance for themselves.) After asking around for a couple of weeks, my customers found a licensed GC who was willing to assume the official role of general contractor for a fee of a few thousand dollars. He also agreed to allow them to complete most of the work and hire their own subcontractors.

Unfortunately, the lender was not satisfied. It now wanted written quotes for all of the work. My customers were surprised by that requirement, since they intended to do much of the carpentry themselves with the help of family and friends. When they finally secured written estimates, the lender said the total cost of the project was now greater than what it could lend them, so they were turned down for the loan.

Fortunately, I was able to recommend a lender who allowed them to act as their own GC and complete some of the work. But, as you would expect, my customers lost a couple of months and incurred a great deal of unnecessary stress. To avoid this problem yourself, be sure to learn what a lender’s policies are before selecting it.

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Are You Truly Ready, Willing, and Able to Build a Modular Home

February 2, 2012

It takes most customers awhile to shop for a new home. When they’re finally ready to build, the last thing they want is to be slowed down by some unanticipated steps. Unfortunately, that’s what usually happens. Most customers are surprised by these delays because they haven’t given enough thought to what they need to do [...]

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Modular Homes Promote Planning Discipline

January 28, 2012

Over the years we’ve built modular homes for several customers who stick built their previous home. Since most of them were happy with their home, it’s interesting to consider why they decided to build a modular home next. Invariably, it was because their stick building experience was marred by substantial cost overruns or considerable time [...]

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Go Green or Not to Go Green

January 25, 2012

You’ve probably read or watched a few stories about why green construction is the way to go. If you’re like most of our customers, you’re asking if the benefits are really worth the cost. This reminds me of my experience with Universal Design (UD) homes. In the early 1990’s, my company built a model home [...]

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Architects Expand the Possibilities of Modular Homes

January 14, 2012

Over the years I’ve built a few modular homes that were designed by architects. In each case, the finished product was among the best-designed homes we’ve built. Here’s a story about one of these homes. The suggestion to build a contemporary cape cod as a modular home came from the architect, Robert Coolidge, AIA, of [...]

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Take the Set Day Inventory Seriously

January 3, 2012

Subcontractors who finish the siding installation on a modular home need to have all of the materials accessible when they begin their work. Sometimes these materials, which are shipped loose with the house, are buried beneath a lot of other materials. The subcontractor for one of my customers did not get fifteen minutes into his [...]

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Ensure the Dealer and Lender Agree on Payment Terms

December 23, 2011

Modular manufacturers prefer to be paid cash on delivery (COD), and many insist on it. But most lenders prefer to make the final payment after the home is set on the foundation. The way most manufacturers and lenders reconciled their conflict is by using an “assignment-of-funds” procedure that legally commits the lender to paying for [...]

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Correct Modular Home Button-up Procedures

December 7, 2011

One of my customers, who hired an independent GC, called me four years after he moved into his home. He’d found a bulging drywall seam in his vaulted foyer. A carpenter friend had already fixed the seam three years in a row, but it had reappeared that winter. He wanted to know what was wrong [...]

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What You Need from Your Dealer – Part 2, Drawings, Scope of Work, & Specifications

December 7, 2011

In my last post I said you need to receive four things from your dealer:  legalese, drawings, scope of work, and specifications. In this post, I’ll discuss the drawings, scope of work, and specifications. The modular dealer and factory are obligated to build your home to match their drawings. You are obligated to accept what [...]

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