HomeCodeHidden Costs of “Mail-Order” Homes

Hidden Costs of “Mail-Order” Homes

Builders should help homeowners understand code compliance, certifications and unsafe shortcuts before they make a purchase decision they regret.

We have all heard the well-known phrase, “If it sounds too good to be true, it probably is.” Skepticism about big claims is more needed today than ever, because the internet is flooded with products that claim to do everything from eliminating wrinkles to making you rich in ten simple steps.

If only.

There’s an especially strong need for skepticism towards ads for instant shelter. After all, the stakes here are a lot higher than for skin cream.

In fact, there are several companies online offering fully functional homes delivered to your lot for an unrealistically low price. Most of these companies promise modular or shipping container structures that they claim are suitable for everything from a primary residence to a turnkey restaurant. One of the most important questions the buyer needs to ask upfront is: do they meet code? Many of these products originate in other countries, where manufacturers may be unfamiliar with the state or local building codes that regulate construction in the United States.

Even if you live in a state or locality without a specific modular code program, you aren’t necessarily free to build, or take delivery of, whatever type of building you want. Most municipalities require structures to adhere to specific building codes and to prove code compliance through rigorous inspections.

Even if you live in a rural area that lacks a governing code, it’s important to ask: do you really want a home that hasn’t been constructed to minimum building and safety standards?

Codes and inspections are designed to protect both the consumer and the community. While some people view them as expensive hurdles, quality builders understand that they level the playing field by setting quality and safety standards that all builders need to meet. For consumers, those standards provide peace of mind that their home will maintain its value and will withstand the tests of time and weather.

Why Codes Matter

US codes and standards provide a minimum requirement for life safety, energy efficiency, structural integrity, material quality, and much more. In fact, the US has some of the most stringent building requirements in the world, evident in its adoption of the International Codes, which undergo continual updates.

The code compliance process begins with a pre-construction plan review to ensure that standards will be met. It continues through construction or (in the case of modular) manufacturing with a rigorous inspection process to confirm the approved plan is followed at all stages.

When you apply these same standards to structures advertised online, the differences become clear. Many “mail order homes” are not designed or reviewed to meet US building codes, nor are they inspected during construction. This can make them difficult — or impossible — to legally build in many US communities. Consequently, the buyer has no real understanding of what they are receiving, and often no proof it was built as promised.

The Value of Certification

Structures built under a State Modular Program, or with a local authority having jurisdiction, must undergo detailed plan reviews and in-plant inspections during the construction process. This applies regardless of where the product is built — whether locally, in another state, or another country. To provide a code-compliant product, an international manufacturer must typically contract with a third-party service provider. This provider conducts the same level of plan review, plant certification and product inspection required of domestic manufacturers.

To produce compliant modular products, a manufacturer must follow these important steps:

1. Registration. The manufacturer must apply to the specific state where the product will be sold.

2. Quality Assurance. It has to create a manual that details how the manufacturer will ensure code compliance.

3. Plan Approval. Every design must be approved by the authority having jurisdiction over the location where the structure will be placed.

4. Plant Certification. A third-party agency must inspect the manufacturing plant in person to confirm that production processes meet program requirements.

5. Product Certification and Labeling. A third-party agency must witness every unit while in production to ensure compliance. This is in addition to the manufacturer’s robust quality assurance program. An insignia is placed on each unit to ensure that it’s in compliance with the applicable building code and the approved design package.

Furthermore, all the materials used in the structure — from framing members and electrical outlets to windows and countertops — must prove they also comply with established standards. Failure to use certified materials can result in the entire structure failing to meet code.

The Danger of Cutting Corners

A low price is not a bargain if the product is inferior or dangerous. Two examples: The use of substandard, uncertified materials can cause “sick home”” syndrome through the harmful off-gassing of toxic chemicals. If the design ignores flame-spread and smoke issues, the results can be life-threatening.

If you take delivery of an uncertified “mail-order home,” you may find yourself in a nearly impossible position. Third-party agencies are generally prohibited from certifying products once they leave the factory, and local authorities may deny occupancy permits. You could be forced to deconstruct portions of the home to prove compliance — an incredibly costly and frustrating path. Even then, an occupancy permit is not guaranteed as major concerns could be exposed that make repairs too expensive to proceed.

How To Protect Yourself

How do you know if a product is compliant with the applicable codes? The key is the insignia or label placed on the unit during production by the state or a third-party agency. This label signifies that the home was reviewed and built according to the specific requirements of its destination.

Any reputable, compliant manufacturer will be able to provide certification details before the buyer purchases the home. If they cannot, you already have your answer: the deal is too good to be true.

As Vice President of Construction Services for ICC NTA, Steven Saffell oversees plan review and inspection services to state and local jurisdictions, modular manufacturers, and design professionals across the U.S. With degrees in both architecture and business Steven has enjoyed a 35+ year career that has focused on the offsite construction industry including modular and panelized construction, HUD, fenestration products, and product testing.

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