Are Modular Homes Really Cheaper than A Traditional Home?
September 30th, 2008Is it true that a modular home costs less than a traditionally built home? Modular homes are built inside a factory setting, which creates numerous advantages that general contractors building on site do not have. The assembly-line production process favors lower prices for materials such as lumber, siding, windows, sheet rock and appliances. Because these manufacturers buy in quantity they pay far less and pass this savings onto their builders.
The hourly rate is typically lower in a modular factory, $15 per hour or less compared to sub-contractors which average over $30 per hour. Modular companies are organized differently and utilize their time more efficiently. There are no rainy days in a modular home plant. There are no wind storms, vandalism and theft to worry about.
A modular home is more durable as it is built with precise specifications long before it ever reaches the job site. In fact, many sources believe that modular houses are stronger than traditionally built homes because they have upwards of 30% more lumber, which makes for stronger frames. Modular units arrive at their destination by truck 90% completed. A 2,000 square foot modular home will typically have four units delivered. Assembly only takes a few days compared to months with a stick built home.
Now for the bad news, yes it is true the price of a modular home can be 10% to 20% less compared to having a traditional home constructed. But the transportation costs can eat away at your savings if you’re not careful. If a modular home factory is located near your property, (within 150 miles or less) then chances are you’re going to have low transportation costs. On the other hand if your property is located 250 miles or more from the modular factory you could pay a lot more. The cost of transporting your dream home will determine if you save a lot of money or not. So, always keep this in mind when shopping for a modular home. Try to focus on manufacturers in your back yard first before you venture out of your area or into another state.
Manufactured homes are constructed in a climate-regulated facility, which eliminates expensive delays whenever the weather acts up. The time it takes to have a modular home built and ready to be occupied can be as short as 90 to 180 days. This type of turn-around can mean huge savings in interest payments on your construction loan. Time is money and quicker build times makes modular housing very attractive to potential home buyers.
Manufacturers can order all their materials for both the exteriors and interiors in bulk thus saving thousands of dollars. This savings is passed along to the builders and developers that are affiliated with the manufacturer. This is a huge savings for modular home builders, which site builders don’t enjoy.
One often overlooked advantage of modular homes for builder-developers is that because a modular home is manufactured in a single factory, those who are building it will be subject to the same performance standards and building codes as traditional housing contractors. The end result is a home of uniform quality throughout, and both the home builder and the future home owner will benefit from knowing that. In addition to tight building standards most modular homes have additional lumber engineered into each home. The extra lumber is designed to help the home during the transportation process, ensuring the home is not damaged during its journey to the job site.
Customization
How about the fact that going modular allows a builder to tailor his home plans to his customers’ specifications? This is a terrific advantage of modular homes for builder-developers because it gives the builder the flexibility to either draw up his own plans or order homes built to an individual buyer’s request. But there is a catch; some modular home factories do not allow for customization and so when shopping for a modular home check with your builder to see if this is an option.
Another advantage of modular homes for builder and developers is that there is literally no limit to the size or architectural detailing of these homes. Commercial projects like condos, townhomes and apartments are going modular as never before. There is a limit to how high a modular structure can go which is usually three to four stories high.
One resource available today for modular home buyers is a publication called, “The Complete Guide To Modular Housing” by Randall Eaton. This publication is currently on its nine edition and is considered by many to be the number one resource for modular home buyers, builders and developer. With fair and balance review and ratings it’s no wonder why this buyer’s guide is so popular. To learn more about this amazing resource please visit www.modularhomesnetwork.com.