A modular home is often confused with a manufactured home. While both are built off-site, the quality of the two makes all the difference. A modular home also called prefab or factory-built, has a higher level of materials and craftsmanship than that of a mobile home.
Can you Build a Modular Home for under $100k?
Yes, it is possible to build a module home for under $100k. Prefab companies have been sprouting up around the world. Sweden, Japan, and Germany are way ahead of the Western world in terms of being production-based.
Evolving slowly over the past 15 years, American architects and builders are still reluctant to give up traditional methods and having control over the amount of money charged for each job.
What is the Cost Difference between Traditional Built Homes and Modular Homes?
An assembly-line approach to constructing a modular home can limit custom features but can save an estimated 15% to 20% in labor and time.
Many new homeowners feel more comfortable with the fact that they can make changes in a stick home’s design while the work is in progress. With a modular home, very few changes are allowed once the construction is underway.
Cost per Square Footage
There are a lot of variables in pricing a modular home, as is with a single-stick home. Modular units can be bought with the bare necessities or the entire house can be custom-made with the latest Smart technology.
A new home construction can vary between $100 and $200 a square foot while luxury homes can cost between $200 and $500 per square foot.
How Modular Homes are Evolving
Prefab construction has improved dramatically over the past 15 years. Single-family homes with little need for designer trim and unique architectural details are finding that the cost savings of $10,000 is nothing to sneeze at.
However, there are a few glitches that can increase the cost or slow the building process. Because modular homes are not welcomed to some communities, there could be issues with:
- Building permits
- Association guidelines
- Obstacles, like utilities or topography
All aspects regarding the placement of the modular home have to be taken into account which could impact the end cost. These are questions that should be raised with a modular building company before accepting their attractive pricing.
Most Economical Modular Homes
Modular homes scaled under 1,000 square feet are the best bargains when it comes to beating a stick-built home. Simple structures with 2-3 bedrooms can outcompete a stick-built home by saving in moving costs. Many modular home companies also utilize robotics in construction, lessening the cost even more.
What are Appraisal Values of Modular Homes?
Although most real estate companies like to argue that modular homes do not hold their value, there is little consensus to support this fact. The same interchangeable materials, labor, and foundation are present in both methods of building.
An appraisal cannot discriminate against a modular as compared to a stick-built home as long as the foundation, framing, exterior work, and major systems. Major systems consist of HVAC, electricity, and plumbing.
International Modular Homes are Becoming Famous
Stepping outside the realm of traditional housing has an advantage in modular homes. Unusual shapes and energy-saving features are flowing into the Western world for those ready to take the leap. Known as container houses, units of varying sizes are able to sit side-by-side or stacked to gain the square footage necessary.
Made mainly of steel and glass, these units are flexible, durable, soundproof, and waterproof. The lack of traditional style keeps many homeowners away, but these futuristic homes can be purchased for $1,000 to $10,000 per unit.
Toyota of Japan has recently begun an assembly line of houses, just like vehicles. They are efficient, earthquake-proof, and hold the same quality standards as their car manufacturers.
Easy to go Green
The upside to building a modular home is that there is very little waste in building materials. Earth-friendly products can be bought in bulk and stored for the next building project.
Stick homes have no room for inventory and are forced to throw away lots of construction debris.
Are Modular Homes a Good DIY Project?
Unless you are an experienced builder with knowledge of foundations, septic systems, and permits, a builder/architect is always recommended.
Not only can they save you money in the building process, but they will also have contacts in the modular building industry with the best reputations.
Statistics on Modular Home Costs
According to studies conducted by HomeGuide, the average cost to build a modular home are $50 to $100 per square foot for just the base unit.
Prepping the site, placing on the foundation, transportation, assembly, and hooking up utilities are extra. Depending on your contractor, these additional costs can range from $30 to $60 more per square foot.
The cost breakdown of a modular home
A low-end modular can be built and delivered for $80,000 to $100,000 while a larger, more sophisticated model can run $120,000 to $270,000.
The nice part of modular homes compared to stick homes is that they have been found to be:
- More energy efficient
- Have lower utility bills
- Safer during inclement weather
- Appreciate in value the same as stick built
Just like everything in today’s world, modular construction companies must be checked for proper licensing, insurance, reputation, and reliability. Involving a contractor early on can help you find a trusted company.
Some companies will have specific models to select from while others will offer certain changes before the work begins.
Changing the attitude of society concerning modular homes has taken decades, but this industry has grown by 48% between 1992 and 2002.
When you have the option to use the same quality materials, the same construction workers, and to cut the production time in half, it only makes sense to compare pricing on a modular home as opposed to a stick home.
Check out the models of ranch, Cape Cod, two-story, modern, French country, or a delightful unique glass and steel container-type home today and feel confident about your choice.