Modular homes are somewhat more cost effective per square foot than other forms of construction. Prices range from $60 – $90 per square foot for completed construction, reflecting a savings of $20 – $40 per square foot compared to traditional site built construction. Many modular home dealers are ready to make deals. Some modular homes are priced as low as $30 per square foot, but in those cases it is very important to find out what is included in that price. Some of these prices are for unfinished homes. Paying less for an unfinished home can be a great money saver as long as you are prepared to finish it. If you do not have the skills needed to finish your home, or don’t have enough money left to complete it, it could prove to be a costly mistake. Either way it pays to know what is included in your modular home price.
Far from the complex processes involved in pricing construction built on site, some modular home dealers make pricing very straight forward. Many of the modular homes companies have web pictures of modular homes and their prices. Others post statements that their prices begin in the $80,000’s or “our prices start at $65,000. Speaking to a dealer can reveal hidden extra costs, such as site preparation or foundation vs. cement slab. As with other types of construction, the foundation is well worth the additional cost in most cases.
Financing is similar to other construction to mortgage loans, but there are some differences so it is much better to find a lender with experience dealing with modular home loans specifically. There are some key elements that vary, including a shorter term for the construction loan, and a need for the mortgage loan sooner.
There are many different types of modular homes and different quality levels as well, and this accounts for some of the price variations. Some modular home builders advertise homes which can cost up to $200 per square foot. These are luxury modular homes, or at least companies who advertise themselves as quality or luxury homes. The actual quality varies considerably with these types of companies, but many of these homes include a lot of imported marble, floors made of exotic wood, expensive and unusual pools and tubs inside the house and other extreme luxury items.
In comparing prices between modular homes and traditional homes some say it isn’t an equal product, but those who advocate modular homes say the quality and durability is actually far superior for modular homes. The fact is that modular homes are in no way inferior by nature than other homes. The materials and processes are very similar and in some cases identical, only the location of construction varies, however quality varies from one manufacturer to another. Selecting a modular home manufacturer is much like selecting any other building contractor. It pays to research. Tour a factory if possible or at least read their specifications carefully.