California Real Estate Principles, 10.1 Edition Chapter 15 Single-Family Homes and Mobile Homes

Chapter 15 Identify construction terms associated with home building. Differentiate among architectural styles. Discuss the advantages and disadvantages of owning a: Mobile home Condominium Vacation home List the advantages and disadvantages of owning versus renting.

Home Construction Styles One story Simplest to build Easiest to maintain Occupies more land per square foot of living space

Split Level Home More expensive to build Better utilization of land Good for varying topography Pleasing cosmetic effect

Two Story Home Lower cost per square foot Difficult to reach some of exterior areas One foundation One roof Stairs

Roof Styles One sided Flat Shed Two sided Gable * Four sided Hip * Gambrel * Five sided Victorian Mansard * Pyramid

Architectural Styles Colonial: New England, Georgian, Southern, Dutch California: Bungalow, Ranch*, Monterey * English: Elizabethan, Tudor French: Provincial Norman

Architectural Styles Victorian* Spanish Contemporary Mediterranean or Italian

Construction Details Key words: Ceiling joist C. Cripples D. Bracing E. Fire stop F. Flashing G. Floor joist L. Rafter O. Stud L F A C O D E G

Remodel: Ceiling joist & studs

Remodel: framing & studs

Remodel: Header, studs, foundation, & floor sheathing

Manufactured Home Sales If made after June 15, 1976, it must have a HUD tag If purchased after July 1, 1980 can be taxed as real estate if attached to a permanent foundation Licensees should read mobile home Residency Law Civil Code 798 and Mobile Home Parks Act Sections 18200 of Health and Safety Code

Selling Manufactured Homes NEW manufactured home must be sold by Mobile Home Dealer, licensed by Dept. of Housing & Community Development. USED mobile home can be sold by BRE real estate licensee if the mobile home has already been registered with Department of Housing and Community Development

Manufactured Homes Single: 8 foot x 10 foot wide Single: 10 foot wide unit Multiple-wide, double-wide or triple-wide Quad: four units together

Financing Mobile Homes Considered personal property Recorded Security agreement (not trust deed) FHA, DVA and Cal-Vet loans Bank conventional loan Amortized for 15- or 20-year term Higher interest rate than conventional home loans

Condominiums Condominium – exclusive interest in living unit and common interest in remainder Condo developments have an owner elected governing board of directors Condos may be residential, commercial or industrial

Condominium Owner can sell individual unit Insurance usually with association Income tax benefit of home ownership Lower maintenance costs for amenities Individual loan with equity Ownership appreciation More amenities Homeowner association dues

Vacation Homes Risk – Greater risk than principal home Liquidity – Ability to convert home to cash Management – Cost and time at a distance Tax aspects – Deduct loan interest Appreciation – Increased future value

Rent or Buy? Amount of cash Down payment or refundable deposit Monthly payment Fixed, variable or known future rent increases Mobility Long term or short term housing need Maintenance Time, money, convenience, tax benefits Appreciation Future cash or rental income Security Stable and more known or unknown