Changing perceptions about modular homes

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urn-Key Modular Homes owner Scott McKay said he is trying to redefine the way people view modular homes here on the East End. Fighting what he says is the misconception that modular homes are nothing more than double-wide trailers, Mr. McKay described this type of home as an innovative and more efficient form of architecture—one, in fact, that he and his family own and live in.

Citing modular construction as a cost-effective way for many prospective buyers to purchase a home, Mr. McKay reported that the price tag can be significantly lower for a modular than for the cost of more traditional East End housing. He added that there are also many other benefits to the turn-key approach his company offers.

Last week, Mr. McKay discussed the services he offers through his Southampton-based company over traditional Irish fare at Finn McCool’s in Westhampton Beach.

Q: What are some advantages of building a modular home versus other forms of new construction?

A: One of the big advantages ... well, how many times have you visited a home that is under construction, and it rains? As soon as the rain stops, carpenters are right back putting the sheeting on. It takes years to dry out, and in the drying out process the Sheetrock shrinks, so you get a lot of cracking, which is just the natural process of a home drying out. In modular homes, the lumber is shed-dried for six months—indoors, where there is no rain—so it sits in a controlled environment. The end result of that is we have minimal settling and minimal shrinkage.

Q : Who is your target demographic?

A: My target market is the local people. That’s not to say we haven’t built some high-end homes for people from New York City, but I really enjoy working with local people who, because of the modular pricing, can afford to buy a home on the East End.

Q : How did you get into this business?

A: I had built a modular house to live in. I was in the boat business at the time and didn’t like it. I called the builder and asked him if he could use anybody to work with, and he said yes. Later, he called and offered me the franchise. It’s a privately owned, one-of-a-kind modular home business. I buy homes from the factory and sell them through Turn-Key to the public.

Q: Why did you choose to work with modular homes after buying your house?

A: I was very impressed with the product. I felt that this was leading-edge technology, and that this was the way people were going to build in the 21st century.

After we built the first home, people were often asking, Why are they so boxy? I said, they don’t have to be that way. It is only limited by the person’s imagination and budget. I wanted to build a new house and not have it boxy and show what we can do. My home is actually on my website. It’s about a 4,000-square-foot two-story.

Q: Where exactly does your average territory extend?

A: My territory is now from eastern Patchogue to the end of the island. You protect your territory like an automobile dealership is protected. I live in Southampton, in North Sea, and I’ve been with the same company for 18 years.

Q: How much do modular homes cost compared to traditional homes?

A: I have found that they are about 50 cents on the dollar of a conventional construction. There are two stories for under $200 per square foot, and ranches and capes for right around $100 per square foot. They’re very competitively priced.

I grew up believing you get what you pay for, and when something seems to be too good to be true, it usually is. But this is the exception. It is the efficiency of an assembly line. What do you think you would pay for car if it was handmade? A couple of hundred thousand? The same rule applies to modular homes.

Q: How much does a modular starter home cost?

A: A starter home—using the number of $100 per square foot—a 1,500-square-foot house could cost $150,000 plus the cost of the property. I’m trying to get the towns interested in affordable housing. Southampton has got a project where they got seven to nine lots that are ready to be developed, but from what I understand the town is going to rent the houses. That isn’t affordable housing, that’s affordable rent.

Q: What would you say to someone who is skeptical about purchasing a modular home?

A: Come see my home, which I use as a model. You can’t build a model in Southampton Town, but you can certainly live in a modular home and show people. I say also, go to the factory and go for a tour. I’ve even had people go and watch their homes being built. The factory has hundreds of workers, and the process takes, from start to finish, about four days. There’s a framing station, an electrical station, a kitchen station and a bathroom station.

Anytime I have ever sent somebody to the factory, I have never not sold a home. Some people still think modular homes are like double-wide trailers and that walls are made out of fiberglass. In every sense of the word it is like a conventional home. They last as long as any home would last—100-plus years, depending on how well you take care of your home. They don’t have any different life expectancy.

Q: What are the problems that arise from transporting the homes from the factories to the site?

A: There are times when trees need to be trimmed to get out into the site. The trucks are accompanied by escort vehicles with flashing lights. Usually there are no problems.

Q: Are the houses transported in one piece?

A: The houses are made up of different boxes. Traditionally, two boxes make up the ground floor, and two boxes make up the second floor. It is kind like playing with boxes when you’re little.

Q: How has the current housing market affected your business?

A: We’re still busy—business has dropped off, though. I have lost a couple of deals because some of the lenders have backed out. We still had a good year last year. I spoke to Wells Fargo, and they pulled back their construction loan money. I got one of the supervisors on the phone, because I’ve been with Wells Fargo for years. They said, “We have allowed our construction loans to start to back up in Connecticut, because our research has found that the market has bottomed out there, and that it has not bottomed out on the East End.” They don’t want to approve a loan in January, and by June it will be worth significantly less money. He said when their research says the East End has bottomed out, they’ll offer the construction loans again.

Q: What are some of the challenges of working in the modular industry?

A: Almost anybody can call a company and become a modular representative of that factory. It is not unlike the old used cars dealers, when nobody was holding them accountable for the product they were selling. Anybody can be a modular home guy, and that’s not right. I think there needs to be more regulation. I’ve heard horror stories of people taking delivery of their homes and the builder disappears.

That’s how my company got its name. My predecessor said, “I just want to be clear—you are a builder and developer. You need to deliver a turn-key product. You don’t just set the house on the foundation and disappear.”