Dealing with the Dealer

Let me first say that we love our home and are very satisfied with our choice. We are, right now, enjoying our home and are generally quite pleased with the home itself. However, the process was trying and often times frustrating. We are providing information on our experience, (including the experiences of many who we have talked to who also have purchased a manufactured home), so that you will be well informed when you walk into a dealership. It is having the information and the knowledge that will make the processes less of a frustration and less of a problem.

Even if you were to have a home built from scratch by a contractor, you could face many of the same problems that are faced by those purchasing manufactured homes. The same choices, and decisions are there, and only an informed buyer can prevent delays and frustrations on all sides.

Odd bits of information

Some dealerships offer in-house financing. It can often be easier to obtain than other financing. You might want to ask the benefits of going in-house as opposed to going to other financial institutions. You can also use a broker. He usually works with the dealership and there can be a kick back to the dealership for recommending him. His fee runs around $1,200.00 to $1,500.00. But it can change depending on circumstances. You can choose your own broker, one not affiliated with the dealership.

Did you know that if you can put 20% to 25% down that most financial institutions won't even ask you for a credit report? It is the easiest way to get financing. With that much down they don't really care what your finances are as long as you have a job and can afford the payment. It is something to think about. If you have had bad credit in the past, this may be the way to go.

There is also a program for those who would not normally be able to afford to buy their own home. It is called the "Buy For" program. It requires someone to purchase the home in their own name, using their credit as the primary borrower along with the other person, (secondary borrower), who couldn't get financing. Parent's of children often do this. If the secondary person pays their payments on time and regularly for three years, the home will be refinanced in their name only and the original primary borrower is then no longer responsible for the loan. Both the primary and secondary borrowers receive credit. It is a kind of rent to own situation for those who might need this kind of program.

Ahhh! The dealer

When dealing with the dealer it is easy to lose control of the situation. In fact, because few people understand the process, it is often easier to let the salesman tell you what can and can't be done. After all, he should know better than anyone how things are run, shouldn't he?

The first thing to remember is he is there to make a sale. This is his income. Salesmen receive commissions on your order. No sale, no income. That is why I must warn you, "Buyer Beware!" just like any other purchase.

Like any other business, you have those salesmen who do it by the book and then there are the unscrupulous ones who will tell you what ever you want to here. We feel that most of the problems come, not from dishonesty, but from miscommunication, misunderstandings, and the fact that the clients are not completely informed prior to actually ordering the home.

The salesman may not provide you with all the information. There is no form or pamphlet, at this time, that lists all the options. There are no photos that show what these options will look like. They have some information, and some photos, but there is no organized way of providing you with all the information you need to make an informed decision. As of this moment there is no catalog provided for each model showing all the option choices. You will be depending on the seller to provide you with this information. Unless you know the right questions to ask, you may not get all your information.

Take for instance the plumbing. How many of us ask about the size of the pipes that will be bringing the water into your home, ( the ones under the sink and tubs, not the main water supply pipes.) There are at least two different sized pipes for your water supply. One is very small in diameter and will not provide you with a large amount of water in a reasonable amount of time. If you like showers with good water pressure, the smaller pipes might disappoint you. If you are going to have a Jacuzzi or garden tub you may want to ask about the pipe size. It could make the difference in filling the tub in 30 minutes or 10 to 15 minutes. If this is something that matters, it is worth investigating. The pipes I am talking about are the fittings under the sinks and tubs.

Note - Factory Tours are available by most dealers. They are worth their weight in gold. You can ask all the technical questions you desire, the ones the salesman may not know. And you can watch homes being built. You can see the studs, the insulation, the fittings, everything. The tours are usually Monday through Friday regular work hours. I recommend a tour of the factory of each brand you are considering before you buy.

Why the smaller pipes? If your home is energy efficient, they may use the smaller pipes which don't provide as much water flow and can save you water. It might not seem like a big deal right now, but it can be once you are in the home. A Palm harbor Home is energy efficient. In fact, the dealer we purchased it from offered us a special benefit. If our electric bill was over $139.00 per month for the first year, they would pay the difference. I assume that is one of the reasons the smaller pipes were used. We compared our pipes with a friend's home from another manufacturer who does not claim energy efficiency and their pipes were larger. Their water flow was better. Their tub filled quite a bit faster.

It is important to understand that the factory has little control over your home except for the basic regulations they have to follow and the bottom line, which is that they offer only so many options for each model, then follow-up with warranty repairs after the house is set up on the property. The entire burden for ordering your home is on the shoulders of the salesman who writes up the order. It is his forms, his instructions, his paperwork that will determine the outcome. It is his work that orders the set up and the brick work and the plumbing contractor etc. If he makes a mistake, the factory has no idea that it is a mistake. Their only obligation is to build the home as he orders it. and to honor the warranty, So, it is the salesman you need to concentrate on.

Most of us walk into a model home and fall in love. We see it furnished and decorated. We see certain color schemes. There may be a fireplace, a built in bookcase, a built in china closet. How many of us know that they may have several designs for the fireplace--everything from rock , floor to ceiling, to tile? Did you know that some models offer back to back fireplaces that share a common log area and that you can see through from one side to the other? Did you know that you can often get wall to ceiling rock fireplaces or a rock fireplace with no rock above the mantel? Did you know you can get a raised hearth rather than one level with the carpet? Did you know that in some cases you can move the fireplace from a wall to the corner or visa versa? Unless you are aware of all these choices you will not have the information to ask to see all the pictures of the fireplaces. You will assume that what you see is what you get. It just isn't so.

Any piece of furniture that is built-in can be removed from your home. You do not have to take that built-in desk or the built-in bookcase, or the built-in curio cabinet. Make these selections very clear to you salesman. He has many clients he is dealing with and it is the buyer's responsibility to make sure all these choices are in writing and acknowledged by the salesman, and that both seller and buyer initial each choice on the list of options you pick. If you fail to provide written documentation of your choices, mistakes are hard to prove and even harder to get results on later, unless you have good documentation.

Also, remember that each change you make effects the financing. New paperwork has to be submitted for each change that effects the amount of money your are borrowing. The salesman will try to pin you down to a specific choice right away and set things in motion for your financing. We had no idea until very late in the process that every change we made caused an entire whole set of paperwork for both the broker and the salesman.

Skylights are wonderful ways of bringing natural light into your home and reducing your electrical bills. This is an option you must investigate. We had one put in each bath and in the kitchen. There are limits in how many you can have in one home as well as regulations which determine this so ask your salesman about this and get his answers in writing.

Sliding glass doors are also available. Again they are regulated so you will need to discuss this with the dealer. They are not considered glazing. HUD requires a certain amount of glazing, (windows) in each model. The engineer at the factory will know these specs and should be contacted by the salesman prior to your final decision. Certainly well before you order you home.

It is OK to change your mind when choosing your options! Remember, it is you who are buying the home, living in it and paying for it. No one should put any pressure on you not to make a change unless it is a construction problem and the engineer says it is not possible.

The models that offer sitting rooms, (commonly called parent rooms or retreats) - Did you know that you can opt to have that room become an extension of your master bath? Or, it can be made into a vanity or anything else you wish. Of course, the engineer will have to be consulted, but this room can be altered to fit your specific needs, within reason.

Here is where I want to urge you to think about towel racks and tissue dispensers. This, we feel, is the most over-looked item you should be considering. Did you know that these things have to be ordered? If they are not, you will not have them. Imagine our dismay when we saw that there wasn't one towel rack or toilet paper dispenser anywhere in our new home. Yes, we can buy free standing dispensers and mount our own racks, but if these are something you want to be factory installed in your home, make sure they are ordered and you make sure the salesman knows exactly where you want them placed. Make sure his instructions to the factory are clear and precise. In fact, make sure you have copies of his instructions before the house is ordered. If you can't understand them, the factory won't be able to either.

One other caution. You should meet with your salesman prior to the order being sent to the factory. You should require a copy of that order and review it for any mistakes that might have been made. This is crucial!

Many of the dealerships offer models that have sheet rock. I cannot urge you enough to be very thorough in discussing this with the seller. If you do not specifically request that your entire hallway be sheet rocked, you could end up with one side sheet rocked and the other just wall board. Trust us. It happened to us. We assumed that when we said we wanted all walls, that could be, to be sheet rocked, we had no idea that our hallway would be half one and half the other. If the salesman made a mistake and did not specify this in the order, and you have no initialed, documented proof that you ordered it , it may be hard to receive any kind of resolution to the problem.

Once again, realize that if you are dealing with a financial limitation, meaning that the lender will only lend you a specific amount due to your income, etc., any changes, upgrades, or additions to your original model choice increases the cost of your home. This means that either you need to come up with extra money up front in the down payment, at closing, or the paperwork has to be changed again and resubmitted to the lender. These things can cause complications and delays. That is why we urge you to know your financial limits and then base your modifications on those limits. Ask your salesman to notify you when your upgrades and changes threaten to go over your proposed budget limit. That is the time to sit down and seriously discuss items that can be eliminated or downgraded, and those you absolutely can't live without. If you find that you must change the loan amount to accommodate these changes, are you willing to come up with the difference? These are important questions to ask. Also, ask your salesman point blank what happens if you go over the limit you originally set. Can the broker resubmit the loan for the increased amount?

Then, go talk to the broker independently and let him know what has happened and get his input. We never once talked to the broker, assuming that the seller and the broker were working together. Had we done this, a lot of our problems might have been eliminated before they became problems. We left it up to the seller to communicate with the broker and we should have been doing that ourselves all along. He will be the one to know if the lender will be acceptable in lending you a little more for those upgrades. If not, then you need to go back over your choices and see where you can cut back to accommodate those things you feel are important.

Roofing and siding There are several options and color choices. Please make sure you discuss this with the seller.

Lighting, inside and out - Discuss this in detail. find out if there are other styles of lighting available or whether the fixtures are standard. You can opt to have your home wired for fans and then purchase them yourself or take what the factory offers. Also, discuss the outside lighting. Some buyers have found odds and ends of colors and styles used on one home. If you want the same kind all around, specify it. Otherwise you might get a hodge-podge of lighting fixtures.

Shower Curtains If you have a combination shower/tub, (usually in the second guest bath), you may need to purchase an additional shower rod for the shower curtain. The one they provide is a decorator curtain that does not repel water. It is for show. It goes in front of the actual shower curtain and is on a curtain rod type rod, not a regular shower rod.

Drapery - You only have one color scheme choice. You pick the color scheme and then you get what ever curtain the factory decides to put in that go with that color scheme. If you want to put in your own you can choose not to include the draperies from the factory. If may save you a little.

Furniture - Some dealers offer furniture with the home, some do not. It is strictly your choice. Just remember that if you purchase the furniture you are paying for it over the length of the loan. And, it means less other options available financially.

Decking- The decking available with the house is often more expensive than having it done independently or doing it yourself. If it is important, fine. If not, you might consider X-ing it from your options.

Carpeting and padding - There are different grades and prices. They offer only specific colors to match their offered color schemes but you can upgrade to better padding and better carpeting.

Flooring - There are generally limits here in what is offered. There will be very little variety so if you are looking at something special, discuss this with your seller. He may not be able to accommodate your wishes in this area.

Counters - The only basic choices you have are what is offered by the seller unless you specifically negotiate having an independent contractor do the work after the house is set up. Some sellers will do this, some won't. If it is important, it should be part of your decision in choosing the dealer as well as the model. The broker can include the extra cost for a private contractor to do some of the work that the factory usually does. It is not that uncommon, but it is something that has to be worked out between you and the dealer. If they agree to this, it may fall on your shoulders to contact the contractor and schedule the work. You may have to pay up front when the work is done, or he may wait to be paid at closing. Either way, it can be an option you may want to look into.

This also goes for decking and patio work as well as landscaping, sidewalks, and fencing. If you wish to include it in the financing you need to talk to both the seller and the broker.

Ask the seller what licenses, permits or fees you will be required to pay in the town you will be living. If they don't know, contact your local Building and zoning department. They will be able to tell you. There can be building permits, usage fees etc. and unless you know ahead of time that they will be required, you might be caught short handed and delays will ensue.

What ever you do, do not go out and spend any more money on credit cards, loans, or purchases until you have closed with the lender. Any change in your financial status can jeopardize your closing. The lender can pull out of the deal even with your house sitting on the lot. This is very important! Do nothing to change your credit report except for paying off debt. And always save money back for closing even if you have been told that you will not have to come up with any money at closing. You will be charged attorney fees, closing costs and often unexpected expenses like surveys and fees that you never were told about. Always play it safe and have money available for any surprises at closing.

Now, if there turns out to be a problem, when you do your first walk through of your house, after it is on the lot, don't panic! Note the problems and notify the person who is representing the dealership. He will be there with you when you walk through. Remember that once you have signed acceptance papers of the house you have no recourse on any of the issues you have or any mistakes made. So go through the house with a fine tooth comb. Look for cracks and breaks. Check the screen doors for holes and tears and windows for cracks and breaks. Upon and shut all the doors and windows. Check under all the cupboards and counters. Check the appliances to make sure they are the ones you ordered. Check the carpets, the tubs and showers, the ceilings, the walls. Check for factory overlooks and needed repairs on wallboard and sheet rock. Check the fireplace, especially the mantels for scratches and chips. Check the brick work and the rock work on the fireplaces. Check for squeaks and doors that shut and open properly. Check built-ins for flaws. Check wainscoting and all wood surfaces.

You will be provided forms to note your complaints. This is the official form that the factory will work from when repairing the things you find wrong. Make sure all things are noted at that time.

You should have one more walk through when you finally accept the home as is with the repairs made. If all is not repaired to your satisfaction it must be noted when you sign off on the house for this final inspection. At this time, the only obligation the dealership has is to show up at closing and collect their money. all other contact for repairs will go through a designated person either at the dealership or the factory, or both. At this time, the dealership will be out of the picture.

Request that a touch up kit be provided to you so you can do touch ups with the paint.

If there are any items you are unhappy with before the closing, any mistakes in the order, any errors in the manufacturing like the wrong fireplaces, a bookcase in the wrong place, sliding glass doors that are not there, anything you ordered that was not done, the time to deal with this is before closing. After closing it will be almost impossible to change these things. All complaints need to be made in writing and must be listed in detail and compared to the factory order. This is where your conscientious documentation pays off. If you can prove that you ordered it, the dealership may be forced to provide it regardless of their objections. And if the salesman neglected to order it even after you requested it, it may have to come out of the profits of the dealership.

If it is something that is important to you, fight for it. If it is minor and you can live without it, let it go. It is up to you and only you can decide how much of a problem it is. You can ask to talk to managers, regional managers, even the factory if you need to. There is also the State Manufactured Housing board if you need to go that far to get satisfaction, however, this is a rare circumstance in most cases.

One item I need to mention, insurance. Our dealership, and our broker both offered us the first year of insurance included in the financing. It made is easy since we did not have to come up with a year's premium all at once. You might ask your dealership if they are aware of any insurance companies that provide that service.

After you sign on the dotted line

After you move in, the factory will make arrangements to fix what needs to be fixed. It may take a little time to get these things done. But don't let it go undone for too long. The squeaky wheel gets the grease. There may be a contact person at the dealership that you report your repair requests to. This will be the only contact you will now have with the dealership after the closing.

If you have had your home pre-wired for phone and/or cable you might find that some of your outlets may not work properly. This is a repair job for your factory rep to arrange with an authorized repair person. Often times the wires are broken in shipment or at the factory during the building process. To avoid jeopardizing your warranty , let the authorized repair person fix those things that are covered under the warranty. And don't settle for shoddy work. It is your home and no matter how nice the repairmen seems, it is important to let the factory and the workers know if you are dissatisfied.

Once you are in the house and have a chance to live in the house you may find leaks and other minor things that may need to be repaired or replaced. This is normal for a new home. You may find the floor squeaks soon after moving in. That is a loose lag bolt in most cases and can be easily remedied by the repairman. If the house is properly set up and the workers did things the way they are supposed to your repairs will be minor and more of a nuisance rather than a crisis.

In our case the Jacuzzi motor needed to be replaced, as well as the doorbell. It played a great selection of tunes but wouldn't shut off after putting the batteries in it. One window would not stay open, we had some leaks in the master bath, and we had a couple of squeaks in the floor. We had to have some of the phone jacks repaired. --all minor and all soon repaired.

I have heard of more serious problems concerning other brands, but those seem to be few and far between. I can attest that the people from the Palm Harbor factory were courteous and took very good care of us. I cannot say anything about other dealerships first hand. We are satisfied with Palm Harbor and would recommend them to anyone looking at manufactured homes.

Go To A Sneak Peek at the Inside of a Palm harbor home

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