Saturday, November 10, 2012

Small Builders Have Huge Advantage After Sandy

Small new home builders and especially those that use modular home construction have a huge advantage after natural disasters including Superstorm Sandy that ravaged the east coast this month.

When you look at who will be rebuilding after Sandy you will find that in a lot of cases the foundation of the home is still in place but the home that was setting on it was destroyed. Having a foundation in place upon which to rebuild saves thousands of dollars in excavating and foundation costs. Almost every modular factory can build a home to fit an existing foundation. So can site builders but modular allows the homeowner to move in quicker.

Small new home builders can build just about anywhere. More homes were destroyed outside of closed community developments than inside. The Toll Brothers and Ryan Homes folks will have houses to rebuild in some of their developments but they aren't the ones to go to for remodeling or building on a homeowner's foundation outside their developments. Again both the site builder and the modular home builder can build a new home for them and again the modular home builder can build it faster.

Even if the big box builders wanted to open new communities for the displaced homeowners, it could take a year or more before raw land could be purchased, zoning and planning approved and infrastructure put in. People can't wait two years to get back into their own home. Small builders win again.

But here is where the modular home builder has the biggest advantage over the site builder, they buy from factories that already have thousands of plans that can be adjusted to fit the homeowners needs and ready to go within weeks after the buyer signs a contract with the builder. Since a lot of the inspections are done in the factory, the modular home builder won't be put in the queue for local inspectors to visit the jobsite and sign off on the progress.  A modular home builder can be working on many homes because the modular home factory ships the home to the site about 80-85% complete leaving mostly finish work for the builder to complete before occupancy.

Many modular home factories are putting homes going into hard hit areas of the east coast to the front of the line to help get the homeowners into their new homes quicker.

There are many ways that the small builder can beat the big box builders after a natural disaster. These are just a couple of them.


Louis said...

No wonder that sandy has been the most devastating disaster of all times, many one's lost their almost everything and many of them will take the advantage from now on, as told by the author.. Small builders will now earn a lot due to this sandy. Well best of luck for all those who lost their everything may they get their conditions better like before.

Anonymous said...

I'm getting calls and emails every day about helping people rebuild their homes. Some of the stories I've heard have brought tears. I'm a small builder and can only do so much and it looks like I'm going to be overwhelmed for the next 2 years.