Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
If you’re considering buying a modular house, one of the first questions you’ll probably ask is, “how much do they cost?” The answer, unfortunately, is not so simple. Many factors can affect the price of a modular home, including the home’sg size and style, the construction quality, and even where it comes from.
However, modular homes are generally more affordable than traditional stick-built homes. This blog post will examine some factors affecting modular home prices. Hopefully, this will give you a better idea of what to expect when shopping for a modular home. Thanks for reading!
A modular home is a prefabricated house or manufactured house that comes as individual sections manufactured off-site, transported, and arranged together on-site. The advantages of this construction process are time savings, reduced labor requirements, and standardization; the sections usually adhere to stringent state building codes and safety regulations.Materials are factory built. What remains is calculating labor costs based on the number of hours worked.
Modular homes can come in several different forms. They can be single- or double-wide, making them suitable for environments ranging from suburban neighborhoods to rural properties. The cost savings over a traditional site-built home can be significant due to the quick formation of walls, floors, and ceilings created on factory assembly lines.
Finishes such as shingles, paint, and flooring can also be applied in the factory setting before even being moved onto the actual site where it will be located.
One never needs to ask, “Are modular homes cheaper than stick-built homes?” The answer is clear, yes. Since modular homes are easy to assemble, the labor you have to buy is lower. You also get the added perk of having pre-cut items, no need for an architect, and everything delivered on-site.
This also reduces final costs by making it easier to finish everything quickly. They’re usually 15 to 20 percent cheaper than a stick-built home. The total cost of a modular home depends on several factors, such as size, style, location, and building materials used. Generally, a modular home with two to four bedrooms can range anywhere from $50,000 to $100,000.
Of course, if you are looking for a larger home, you can expect the cost to be higher. Indirect costs add up if you want your modular home to have additional amenities and features, such as garages and decks. Other factors influencing the price include any unconventional additions you make during the building process.
Prices will vary significantly between states and regions, and this is based on local construction costs and regulations. However, manufactured homes are typically more affordable than traditional stick-built homes due to lower labor costs and shorter build times.
Before beginning the process, it is essential to understand the type of loan or funding you plan on using. Get multiple quotes from assembly and transportation companies to find the best deal – compare services and prices.
It can also be beneficial to purchase basic fixtures beforehand since they will often come at discounted rates when bought in bulk or secondhand. Some of these features can be carpets and appliances. Finally, if you’re incredibly savvy, look into used modular homes – buying pre-owned can save you thousands of dollars with minimal effort.
After receiving the individual sections, it’s time to begin the installation. Unless you’re a professional, you’ll likely have to hire someone to set up the home for you.
The construction period for a modular home is usually much shorter than the traditional construction method. On average, it can take a couple of months, and more complex projects can last up to four months. Hiring help to assemble the house is the most expensive part of the project.
As with everything, you cannot forget the permits, tax, and administrative hassle. Sales tax for the modular home will vary but can cost an average of $7,000. Plus, permits and administrative fees will run you an additional $500 – $5,000, depending on the project’s complexity.
Finally, adding extra bells and whistles, such as a basement, garage, or deck, will also require a significant investment. The exact costs will vary depending on what you need. But expect to pay an additional $10,000 – $50,000 for added structures.
If you suddenly realize you may need more space, you can choose to add an extension to your modular home. This is the same as you would do with a standard single-family residence. But it’s going to cost you. Again, the exact amount will vary depending on what you must do but expect to pay an additional $20,000 to $30,000 per room.
Although modular home construction costs tend to be more affordable than the prices for site-built homes, you’ll still need to be prepared to spend a lot. Modular house prices can be as high as $100-150 a square foot, depending on the finishes you choose for the home. And don’t forget that financing a modular home is more complicated than getting a mortgage for a traditional house.