Frequently Asked Questions

Paul Nelson
Why do you sell Dutch Homes?

I have an assumption that all the homes are basically the same home. Dutch can build an expensive Modular or an inexpensive single home. So does most of the other manufacturers.  Dutch will do almost anything that I want to do to a home.  I believe that there is not much if any differences between homes. It is how the dealer stocks the home.  Do they put stuff on the home or do they leave off stuff on the home? I have no problem with leaving stuff off if you know what they are leaving off.  I sell Dutch because I can design a home to fit you rather than making you fit the home.  Most manufacturers will not do a lot of customizing.      

Why should I buy from Nelson Homes?

It is mainly how I can make a home exactly the way that you want it. After you get the home, does it feel like home? Do we have room for grandma’s antique hutch? Are the windows in the right location to get the most light into the home? Etc. Other dealers are very good. Many of the salespeople though are not trusted by their bosses to customize for you. They can get in a lot of trouble if they don’t do it often. There are some things that you should consider another dealer. I can and have done homes on basements before. I just choose not to do that now. I am focused on making a home affordable for you. I put them on pier foundations. If they are going to go on a 4’ foundation or a basement, I would rather you have another dealer do that. I want to be very good on what I do but I do not want to do everything.

Why are new homes so much money?

When I started selling new homes again 3 years ago, I had a problem with the price. They were so expensive. How could I sell a home that I think is overpriced? I used an inflation calculator on the internet. I remember how much I sold homes for in 1997. I put in what I sold them for in 1997. In today’s dollars, they were exactly the same price. We don’t buy homes everyday so when we buy one, a price if fixated in our mind. Our mind does not account for inflation. It would be like going into a hamburger joint today and ordering a hamburger and paying $5.00 for it. When you bought the same hamburger 20 years ago, it was probably $1.50. You would think that the price of the hamburger today is atrocious. It is just inflation.

Why are there not many used homes on the market?

A lack of used homes has been going on for a number of years. There are just not a lot of used homes on the market and there never will be. That is the primary reason that I started selling new homes again. I had been selling just used homes since I sold my dealership (Greater Dakota Homes-Fargo) in 2000. Shortly after that, the market changed substantially. The market was homes sold on their own property on foundations. The dealers were no longer stocking homes that would be sold in parks or property where the land was not owned by the homeowner. When they were put on foundations, it was unlikely that they would be sold to move. The parks became more vacant without the dealers putting homes in the park. The parks started selling new homes in their parks. However, they would not sell to someone who would be moving the homes. This is where you will see "homes that cannot be moved" In the meantime, the homes were getting older all the time. A home that was less than ten years old is now 20 years old. he dealers still do not stock many homes that are not homes that would be sold to their own property. With the setting of homes on frost piers, it has gotten expensive to set a home in the parks. They have been stocking more modular homes. Also, people have been keeping their homes. They have not been re-selling them or they sell them to a friend. Many of the 70’s homes have been going to the dump.

Do manufactured homes appreciate or depreciate?

The answer is both. It depends on the age of the home. If you buy a new home that is $60,000, and wanted to sell it 3 years later. The buyer has a choice between your home and a new home. New homes would have probably gone up $3,000 in those 3 years ($1,000 a year). Many people would probably say “for the difference, I will get a new home”. How much do you have to discount to make it attractive to the buyer? I don’t know. I would think that it would be about 20%. If it has to be moved, it could be more than that.

Now an explanation on how they appreciate. If they are sitting on their own land and can be sold with the land, they will be controlled by the real estate market just like any other home. It could go up or down. This would depend on the market where it is located, availability of land, and other factors regarding the location.

Also as there is more distance between new and used, it makes them more attractive because the new homes have gone up more (new homes go up every year by the rate of inflation; it has been about 3%). In 10 years there is a difference of 30%. The used home will probably sell for what it was paid for. I sold new homes in the 70’s. I remember what I sold them for. Many of those models are selling for more than when they were new if they are nice. The trick is to own the home for a period of time.

What does it cost to move a home?

If you buy a new home with me, moving of the home is included. If you buy a used home from me, the moving costs are not included. Many of my homes are sold “on site” with no move.

Moving a used home depends on what it is, how far it is going and has to be done, and the availability of the moving company.

If I were budgeting, I would budget $5,000 for a single home and $10,000 for a double home. That is way too simplified. The distance does not really make that much difference usually. Usually a 5 mile move and a 100-mile move would be the same. The mover says, “once I get hooked on to it, what is another couple of hours.” It would also depend on entryways, storage sheds and decks.

I would be happy to discuss the particulars of moving a home with you. You don’t have to be buying a home from me. Feel free to call. I assure you that I will be as helpful as I can in suggesting movers and trying to help figure how much it might be. It is way to individualized to discuss here.

Should I buy a new home or a used home?

This goes hand and hand with the above discussion. If you know that you will be selling the home in 5 years. Use the example above. Say that you have to sell it for $15,000 less than what you paid for it. It may be more than that but we can use this for the discussion. So it cost you $15,000 to live in the home for 5 years on your own property. That is $3,000 a year or $250 a month to live in a new home. That included the move to your site and set up. That does not seem too bad to me.

A used home will generally sell for what you paid for it. Might be a little more but not much more. However, you had to pay for the move to get to your site. That will not come back to you. So on a single, it cost you $5,000 and a double $10,000. So if it was the $5,000, it was about $1,000 a year or about $100 a month. You probably would have had some maintenance to deal with also that a new home would not probably have had.