Are Modular Homes Cheaper Than Buying A House?

Many people dream of owning a custom-made house. However, they may face challenges in investing the costs and time required to manage engineers, architects, and other construction workers when building a home.

Modular homes are perfect alternatives to typical design-and-build houses.

Are Modular Homes Cheaper Than Buying A House?

Although modular homes are reasonably priced compared to constructing a home through the typical approach, they are still costlier than purchasing a home in many cases.

It would help if you differentiated a modular home from a mobile home. It’s just a home constructed away from the site.

Modular homes are also referred to as system-built, prefab homes, or factory-built.

What Are The Pros Of Purchasing A Modular Home?

Recently, modular homes have experienced a revival in popularity. However, there is a reason behind this re-emergence of popularity, since modular homes are highly reasonable in the current economy.

The following are some of the reasons why people are interested in purchasing them.

Economical Cost

Many people frequently ask whether it’s economical to purchase a modular home rather than a stick-built home. Since their design can be easily assembled, the labor a person requires to employ is usually less.

Other cost advantages of modular homes have pre-cut materials, on-site delivery, and no architects required. This reduces the overall costs, and you can get everything completed quickly.

Typically, modular homes are 15% to 20% more economical than stick-built homes.

Quality Control

Quality is one of the defining aspects of modular homes due to their advancement.

A modular home undergoes an intensive quality control process. This facilitates a high-quality final product.

Besides, modular homes are faultlessly made. Therefore, there are normally minimal zoning problems during their shipping. Additionally, they have high resale value, and it’s not common to hear complaints.

Speedy Setup

Typical homes may take approximately seven months or more to construct. Modular homes are structured, bearing a speedy setup.

This entails the actual structure portion. Therefore, if you intend to build a house quickly, you should consider a modular home.

Energy Efficiency

If you are an enthusiast of an eco-friendly design, there are many benefits if you opt for a modular home. Most of them available on the market are fully fitted with energy-efficient siding, windows, and insulation.

This makes them a better home that needs less energy to operate.

What Are The Cons Of a Modular Home?

Although a modular house is a great home to purchase, it is not perfect either. In some cases, they may not meet the needs and preferences of some people.

Although the modular house dangers in the wrong hands are not life-threatening, they may disappoint you. The following are major shortcomings of a modular home.

Financing Hitches

Although a modular home can be a perfect investment, mortgage providers tend to have some issues with modular homes. This is because they are not viewed as traditional building types; additional phases are involved if a person needs a mortgage.

One of the challenges linked with modular homes is that some buyers face challenges in obtaining funds to pay their contractors.

Therefore, if you intend to purchase a modular home, you should bear this factor in mind. Fortunately, there are several alternatives to banks when dealing with modular homes.

Several manufacturers make an effort to provide their own lending and financing programs. Therefore, you should consider this option if you face challenges with getting funds from lenders.

Finding Land

There are two major issues associated with the land. First, you need to locate a good piece of land to set up your structure. Besides, the land must be of high quality. This may be challenging, particularly if you intend to live in an urban setting.

Secondly, some areas have land restrictions based on what type of building they permit in the area. Some authorities don’t allow modular homes. Therefore, it may be challenging to find a spot to build a modular home.

Besides, you must purchase the land you intend to construct your house on. This increases the overall cost that you have to incur.

Biasness Linked with Modular Homes

Although this is not fair to the current modular homes, the stigma associated with these types of houses is still experienced in many instances. In the past, modular homes were similar to mobile homes. This made their quality poor.

Although modular homes have become popular lately, this type of house still faces serious bias, as experienced in the past. Many older homebuyers and realtors avoid them due to the stigma associated with them.

Fortunately, this reputation is speedily diminishing. Even traditional home buyers have begun acknowledging that high-quality modular houses have high resale value nowadays.

A Lack of Customization

When most people plan to build a home, they tend to make their plans bearing in mind their needs and preferences. They usually intend their home to have a unique design, fitted with amenities they prefer based on their persona and style.

However, the issue with modular houses is that you cannot customize them. If you succeed in it, you can’t achieve it entirely.

Therefore, you will have to be content with features that you do not like. Besides, they may also lack your preferred features. For instance, you may be forced to bear on a floor that doesn’t suit your vision.

Lack of personalization can be turned away many potential homeowners, particularly if the house is a significant objective in their life. Therefore, a person must decide whether to go on with the deal or continue and tolerate it.

Smaller Sizes

Although this is not a major concern, modular houses seem to be to some extent smaller than typical homes. If you opt to purchase a modular home, you should expect to come across many pint-sized homes.

However, there are large houses available on the market. Therefore, a person cannot miss a house that fits their size. You just need to shop around and choose the perfect home which matches your size preference.

Frequently Asked Questions

Can you customize a modular home?

The good news is you can customize a modular home in as many ways as you can in an on-site building. You can handle simple customization projects. However, you will be required to procure professional services for complex projects.

Moreover, since these constructions are done in a factory, you can decide which features should be included in the modular home you want to buy to suit your needs and preferences.

What are the costs of setting up a modular home?

The total cost of setting up a modular home is dependent on a few factors, including the number of rooms, customizations, and floor plan. However, the average cost for a modular home ranges between $50 and $100 per square foot.

This can translate to an overall purchasing cost range of between $60,000 and $200,000. The setting up and installation price can be anywhere between $30 and $60 per square foot.

How long can a modular home last?

Although these homes are constructed in a factory, you would be wrong to think they do not last for long. Modular homes last as long as traditional houses because both structures are constructed using similar materials.

Modular houses may even last longer, considering the modules that make up such homes are more robust than traditional homes. However, it is challenging to pinpoint the exact shelf life of a modular home. The period it lasts depends on maintenance, material quality, and the ability to cope with different elements.

Are modular houses more costly than those built on-site?

A typical, non-luxury stick-built home can go for about $150 to $250 per square foot. On the flip side, a modular home may cost about $50 to $250 for some luxurious houses.

However, the cost depends on a few factors, including the materials, style, and house size. It may save you some money to buy a modular home, but you need to factor in other expenses, such as transportation and installation costs.

Final Thoughts

A modular home is a perfect option for potential homeowners who intend to construct their dream mansion without bearing typical construction challenges.

Their construction process runs smoothly and faster since the house is constructed in a factory off-site by professionals who are fully aware of permits, zoning, and the home building process.

Besides, you can also work with a manufacturer on its design and customize it.